Assume that the minimum wage in illinois is increased

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Given the following information for the market for McDonalds Quarter Pounder with Cheese large combo meals in Illinois locations:

Consumer Surplus=1/2 x (4 x 5)=10

Producer Surplus=1/2 x (6 x 5)=15

Question: Assume that the minimum wage in Illinois is increased. Carefully explain what will happen to the market for

McDonald's Quarter Pounders. What do you believe will happen to consumer and producer surplus? Explain.

Reference no: EM13898475

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