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(Shifts in Resource Demand) A local pizzeria hires college students to prepare pizza, wait on tables, take telephone orders, and deliver pizzas.

11. (Shifts in Resource Demand) A local pizzeria hires college students to prepare pizza, wait on tables, take telephone orders, and deliver pizzas. For each situation described, determine whether the demand for student employees by the restaurant would increase, decrease, or remain unchanged. Explain each answer.
a. The demand for pizza increases.
b. Another pizzeria opens up next door.
c. An increase in the minimum wage raises the cost of hiring student employees.

This question was asked on May 14, 2010.

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