Question

Bloomswood Hotel is situated in Forkland, a picturesque town in the mountain region of a country. Allen Grabos works as a gourmet chef at the hotel that caters mostly to tourists. In a conversation with his wife, Delia Grabos, Allen claims that he is underpaid. The hotel makes up to $500,000 per year but his annual salary is only around $28,000 a year. Delia, however, is of the opinion that since new hotels and inns are expected to open in Forkland, the salaries paid to hotel staff in the area should increase. Although new hotels and inns did open up, the wages of the hotel staff did not increase as much as anticipated. Which of the following, if true, can best explain this outcome? O A. Many people from the nearby towns moved to Forkland in search of job opportunities. OB. With an increase in tourism in the area, many fast-food chains have recently opened their outlets in Forkland. O C. Tourism is one of the largest revenue earners for the government of this country. O D. Inflation in this country is very high. O E. Most of the townspeople in Forkland were already employed in the hospitality industry.

Answer 1

"A"

many people from the nearby towns moved to Forkland in search of Jobs that means a higher supply of labor and lower wages.