a. as the African American-white wage ratio falls, firms will raise their discrimination coefficients. b. as the African American-white wage ratio rises, more firms find it "too costly" to indulge their tastes for discrimination. C. as the African American-white wage ratio falls, more firms find it "too costly" to indulge their tastes for discrimination. d. as the African American-white wage ratio falls, firms will reduce their discrimination coefficients.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 2SQP
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Refer to the following diagram, in which Waa/Ww is the ratio of the African American wage rate to the white wage rate.
S.
aa
1
D
aa
African American Labor
The demand curve in the diagram eventually slopes downward because
a. as the African American-white wage ratio falls, firms will raise their discrimination coefficients.
b. as the African American-white wage ratio rises, more firms find it "too costly" to indulge their tastes for
discrimination.
C. as the African American-white wage ratio falls, more firms find it "too costly" to indulge their tastes for
discrimination.
d. as the African American-white wage ratio falls, firms will reduce their discrimination coefficients.
Transcribed Image Text:Refer to the following diagram, in which Waa/Ww is the ratio of the African American wage rate to the white wage rate. S. aa 1 D aa African American Labor The demand curve in the diagram eventually slopes downward because a. as the African American-white wage ratio falls, firms will raise their discrimination coefficients. b. as the African American-white wage ratio rises, more firms find it "too costly" to indulge their tastes for discrimination. C. as the African American-white wage ratio falls, more firms find it "too costly" to indulge their tastes for discrimination. d. as the African American-white wage ratio falls, firms will reduce their discrimination coefficients.
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