Suppose that fast-food chains start using healthier ingredients, increasing the demand for fast food and therefore for

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Suppose that fast-food chains start using healthier ingredients, increasing the demand for fast food and therefore for food-service workers, as shown in Figure 16P-3. [LO 16.6]
a. What are the new equilibrium wage and quantity of labor in the fast-food industry?
b. Assume that the skills required of a sales clerk at a retail store are similar to those required of workers at a fast-food restaurant. If workers are completely indifferent between fast-food jobs and retail-sales jobs, what will be the wages for sales clerks?
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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