Other Things Constant, How Will a Decrease in the Wages

question 24

Multiple Choice

Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?

• A) The supply of fast food hamburgers will increase, leading to an increase in the price of hamburgers.
• B) The supply of fast food hamburgers will increase, leading to a reduction in the price of hamburgers.
• C) The supply of fast food hamburgers will decrease, leading to an increase in the price of hamburgers.
• D) The supply of fast food hamburgers will decrease, leading to a reduction in the price of hamburgers.

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Definitions:

Partnership

A legal business structure where two or more individuals agree to share the profits and losses of a business.

Corporation

Legal organization with assets and liabilities separate from those of its owner(s).

Franchise

A licensing agreement where a franchisor allows a franchisee to use its brand, products, and operating methods.

Franchising Agreement

A legal contract where a franchisor grants a franchisee the right to operate a business using the franchisor's trademark, product, and business model in exchange for fees.