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Open Graph

title

De Leporibus et Ranis

description

site name

De Leporibus et Ranis

author

updated

2026-03-01 02:58:12

raw text

De Leporibus et Ranis De Leporibus et Ranis Skip to content Home About ← Older posts November 19, 2013 · 6:13 pm A Little Math and Economics – Doubling Fast Food Wages, and so on Fast Food Labor Costs Labor costs are generally 30% of gross income. Average Income Percentage Spent on Food Average family spends 11% of their income on food. 45% of that is on eating out. We’ll generalize that to fast food. 11% x 45% = 5% Typical family seen inflation: 5% x 30% = 1.5% So, according to the math going around, the average family would see 1.5% inflation do to a doubling of fast food workers’ wages. But, that’s not how things work. (supply is ultimately related directly to labor), but he is somewhat right. Costs would probably go up, but not by 30%. First, sudden dramatic hikes in price can have a negative marketing affect, and restaurants would be hurt more by families compensating by eating out less, than seeing profit margins shrink. So, price increases...

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