When companies' profits would otherwise be reduced by an increase in the minimum wage (a wage rate set by the government as the lowest that companies are allowed to pay), the companies often reduce the number of workers they employ. βββ β ββββββ ββββββββ ββ βββ βββββββ ββββ βββ βββ ββββββ ββ βββ ββββββββ ββ βββ βββββββββ βββββββββ βββββ ββββ βββββββ βββ ββββ βββ βββββββ βββββ
Minimum-wage increases usually result in layoffs so that profits don't fall, yet the fast-food industry didnβt experience layoffs after a recent minimum-wage increase.
The right answer will be a hypothesis explaining why the fast-food industry didnβt react as industries generally do to a minimum-wage increase, especially considering that most fast-food industry employees are paid the minimum wage. The explanation might explain how fast-food companies can maintain their profits despite paying higher wages.
Analysis by AlexandraNash
Which one of the following, ββ βββββ ββββ βββββ ββ βββββββ βββ βββ ββββββββ ββ βββ βββββββ ββββ βββ βββ ββββββ βββ ββββββ ββ ββββ ββ βββ βββββββββ βββββββββ
After the recent ββββββββ ββ βββ βββββββ βββββ βββββββββ βββ ββββββββ ββ βββ βββββββββ ββββββββ βββββββ βββββββββ ββ βββββββββ βββββββ ββ ββββ ββββββ ββ ββββββββββ βββββ ββ βββββ βββ ββββ ββ βββ ββββ βββββββββ
If, in any βββββββββ ββ ββββββββ ββ βββ βββββββ ββββ βββββ ββ βββ βββββββββββ ββ ββββ ββββ ββββ βββ βββ βββββββ βββββ ββββ βββββββββββββ βββββββββββ βββββββββ ββββ ββββ ββ ββββββββββ ββ ββββ βββββββββ
With respect to βββ ββββββββ ββ βββββββββ ββ βββ βββββββ βββββ βββ βββββββββ ββββββββ ββββ βββ ββββββ βββββββββββββ ββββ βββββ ββββββββββ ββββ ββββββ ββββ βββββββ ββ βββ βββββββ βββββ
A few employees ββ βββ βββββββββ ββββββββ ββββ βββββββ βββββββ ββββ ββββ βββ ββββ ββββββ βββββββ ββββ ββββββ βββ βββ βββββββ ββββ βββ ββββββββββββ
Sales of fast ββββ ββ βββββββ βββ βββ ββββ βββ βββββββ ββββ βββ βββ ββββββββ βββββββββ βββ ββββββ ββββββ ββ βββ βββββββ βββββ