Examine the market for fast food services using a demand and…
Examine the market for fast food services using a demand and supply framework. Event #1: Workers at fast food restaurants have gotten together to obtain higher wages. Based on Event #1, would demand or supply shift for fast food services ? Which direction (left or right) would the shift occur? Assuming a new equilibrium point, what would happen to the average price and sales of meals? Event #2: A new report has just come out that eating fast food is even worse for your help than previously thought. Based on Event #2 only , would demand or supply shift for fast food services? Which direction (left or right) would the shift occur? Assuming a new equilibrium point, what would happen to the average price and sales of meals? If both event #1 and #2 happen at the same time, what happens to average price of a fast food service meal and to sales of fast food meals? Why do you say that? Explain how consumers benefit from poverty and income inequality? Give examples from your reading and economic thinking to support.