Sketch hypothetical supply-demand graph for african-american


Suppose there are two occupations: rap musicians and country musicians.

a. Draw hypothetical supply and demand graphs for African-Americans and European-Americans to both occupations. Show the effect of discrimination that prevents European-Americans from becoming rap musicians. (Note, doing this exercise with a spreadsheet is quite difficult. I recommend you use a program like MS Paint, or that you scan hand-drawn graphs and paste them into your homework.)

b. Who benefits and who loses from this discrimination? Show the effect of discrimination on wages and employment in both occupations and on total output in each.

c. What is the effect of discrimination on consumers of rap and of country music? Who gains? Who loses?

d. What would be the effect on wages, employment, and output of open immigration from poorer non-African countries if there are no restrictions on employment in either sector? How might country musicians protect their wages and employment if there is open immigration?

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Microeconomics: Sketch hypothetical supply-demand graph for african-american
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