Suppose That the Wage for Drive-Thru Clerks Is $7 an Hour

question 203

Multiple Choice

Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's.The jobs are alike in all other respects.We would expect

• A)an increase in the supply of and demand for drive-thru clerks at Burger King
• B)an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King
• C)a decrease in the supply of drive-thru clerks at Burger King but no change in demand
• D)an increase in the supply of drive-thru clerks at Burger King but no change in demand
• E)a decrease in the supply of and demand for drive-thru clerks at Burger King

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Definitions:

Non-controlling Interest

Equity interest in a subsidiary not held by the parent company, representing a share of the subsidiary’s net assets and profits.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as elections for the board of directors; instrumental in controlling the company.

Open Market

A market with no barriers to free market activity, where any buyer or seller can trade freely.

Buying and Selling Activity

Transactions involving the purchase and sale of goods and services, analyzed to assess a company's operational performance.