Suppose All Workers in the Fast-Food Industry Receive a Substantial

question 57

Multiple Choice

Suppose all workers in the fast-food industry receive a substantial pay increase because of an increase in the minimum wage. What will happen in the fast-food industry that employs these workers?

• A)Supply will decrease.
• B)Supply will increase.
• C)Output will rise.
• D)Demand will decrease.
• E)Prices will fall.

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Definitions:

Z-statistic

A statistic that quantifies the number of standard deviations a data point is from the population mean.

Level of Significance

The threshold below which a p-value is considered statistically significant, indicating the probability of wrongly rejecting the null hypothesis.

Sample Mean

The arithmetic mean calculated from a sample of data from a larger population, used to estimate the population mean.

Population Mean

The average measure of a set of values from the entire population of interest, representing its central tendency.