Question

A minimum wage in the market demand for fast food workers is likely to produce:

a) An increase in the wage for fast food workers
b) A decrease in the number of fast food workers employed
c) No change in the fast food industry
d) A decrease in the price of fast food

Answer 1

Increasing the minimum wage in the market demand for fast food workers is likely to decrease the number of fast food workers employed.

Step-by-step explanation:

The minimum wage in the market demand for fast food workers is likely to produce a decrease in the number of fast food workers employed. Studies have shown that increasing the minimum wage leads to a decrease in the hiring of unskilled workers by 1 to 2%. While some studies have found no effect of a higher minimum wage on employment, this is controversial and not the typical result.