You own Collegiate Chow, a local burger joint that is one of many such eateries in your town.You pay an average of $8 per hour to your workers.The minimum wage is $7.25 per hour.The Congress votes in a cut in the minimum wage to $6.50 per hour.Because of this legislation what of the following would be an appropriate action?
A)Lower wages to $6.50 per hour
B)Increase wages to $8.50 per hour
C)Pay $7.25
D)Do nothing

Question

Quizplus · Accepted Answer

As the owner of Collegiate Chow, you have the option to maintain your current wage rate of $8 per hour. The reduction in the minimum wage does not require you to lower your wages, and it is not necessary to increase them either. Doing nothing and continuing to pay your workers their current rate is a viable option.

You Own Collegiate Chow, a Local Burger Joint That Is