A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. If the development of employer prejudice then reduces the employment of minorities in one segment, there will be a
a. permanent drop in labor supply to the discriminating segment
b. permanent increase in labor supply to the nondiscriminating segment
c. temporary drop in labor supply to the discriminating segment
d. permanent drop in labor demand to the discriminating segment
e. temporary drop in labor demand to the nondiscriminating segment
C
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Demand is elastic if
A) consumers respond strongly to changes in the product's price. B) a large percentage change in price brings about a small percentage change in quantity demanded. C) a small percentage change in price brings about a small percentage change in quantity demanded. D) the quantity demanded is not responsive to price changes. E) the demand curve is vertical.
Scarcity requires that people must
A) cooperate. B) compete. C) trade. D) make choices.