Quote:
Originally Posted by IliketoPuck
Here's a skill testing question for Polak. Let's see how he does.
Q:
Jim's hardware store has a fixed budget with $30/hr available to pay minimum wage employees, (Jim primarily hires teenagers with minimal living expenses to fill these roles). Jim currently employs three minimum wage workers at $10/hr. Due to increased minimum wages, Jim can now only afford two workers and must let one go.
For the worker let go, were they better off at $10/hr (40 hours per week), or $15/hr (0 hours per week)?
Please take your time to formulate a reasoned reply.
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Is Jim's budget not predicated on supply and demand?