Use the following to answer question(s): Discrimination Model

-(Exhibit: Discrimination Model) If blacks and white have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, then the demand curve for blacks will be _______ and the wage for blacks will be _______ .
A) D; W₁
B) D; W
C) D₁; W₁
D) D₁; W

Question

Use the following to answer question(s): Discrimination Model
 
-(Exhibit: Discrimination Model) If blacks and white have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, then the demand curve for blacks will be _______ and the wage for blacks will be _______ .
A) D; W₁ 
B) D; W 
C) D₁; W₁ 
D) D₁; W

Quizplus · Accepted Answer

If employers have discriminatory attitudes towards black workers, they will assume that they are less productive than white workers, even if they have the same supply curve. As a result, the demand curve for black workers will shift downwards from D to D₁, and the wage for black workers will be lower than that of white workers. Therefore, the correct answer is C, where the demand curve for blacks will be D₁ and the wage for blacks will be W₁.

Use the Following to Answer Question(s): Discrimination Model