If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour, an increase in market demand so that the new equilibrium was $9.00 per hour would cause them to
A)lower their offering wage to $6.50 an hour.
B)raise their offering wage to $9.00 an hour.
C)do nothing differently.
D)pay between $7.25 and $9.00.

Question

Quizplus · Accepted Answer

With the increase in market demand, the equilibrium wage rate increases to $9.00 per hour. Therefore, to attract workers, the fast-food restaurant would have to raise their offering wage to $9.00 per hour, matching the equilibrium wage rate.

If a Fast Food Restaurant Was One of Many Hiring