Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 21 - Income Inequality, Poverty, and Discrimination - Review Questions - Page 488: 6


d. Increase; left

Work Step by Step

An increase in employer prejudice against African-American workers would cause the discrimination coefficient to increase as the employers will be willing to spend more to avoid employing African-American workers. Thus the demand for African-American workers will reduce and the demand curve shifts to its left.
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