If an employer begins to pay higher wages to white workers,then in the short run
A)wages for white workers would fall
B)wages for nonwhite workers would rise
C)profits would rise as nonwhite workers leave the firm
D)output will increase and prices will fall
E)profits would fall as nonwhite workers leave the firm

Question

Quizplus · Accepted Answer

In the short run, if an employer pays higher wages to white workers, it could lead to increased costs without a corresponding increase in productivity, causing profits to fall. Additionally, if nonwhite workers leave due to perceived unfairness, it could further disrupt operations and reduce profits.

If an Employer Begins to Pay Higher Wages to White