If you take a look around Tucson, you will notice that starting in January of 2022, the vast majority of car washes converted from full to self-service operation. This involved adding additional capital to the operations- for example adding multiple 'free' vacuum stations.

Based upon the theory covered in these modules, what economic theory can be used to explain this change in car wash operation procedures?

You may want to consider the following information in formulating your answers:

By a 65% to 35% margin, on November 2, 2021 Tucson, Arizona, voters passed Proposition 206, officially known as the Tucson Minimum Wage Act, increasing the City's minimum wage to $15.00 an hour by 2025. In addition, the Act includes several other significant changes that will impact employers operating in the City.

Five years ago, voters statewide passed a similar proposition that incrementally raised the minimum wage to $12.00 by 2020.

Minimum Wage Increases

Under the Act, the City's minimum hourly wage will increase as follows:

To $13.00 on April 1, 2022;

To $13.50 on January 1, 2023;

To $14.25 on January 1, 2024; and

To $15.00 on January 1, 2025.