If competitive labour market E discriminates against one group of workers and market O does not, we can predict an increase in

Question

Quizplus · Accepted Answer

If one labor market discriminates against a group of workers, those workers will likely shift to the non-discriminatory labor market, causing an increase in the supply of labor in market O and a decrease in the supply of labor in market E. This will lead to a decrease in wages in market O and an increase in wages in market E. Therefore, the answer is E, wages in market E will increase.

If Competitive Labour Market E Discriminates Against One Group of Workers