Scenario 19-6
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, while unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.
-Refer to Scenario 19-6. If consumers do not discriminate between male and female tutors, then
A) the equilibrium wage for male and female tutors will eventually be identical.
B) the equilibrium wage for female tutors will eventually fall.
C) the equilibrium wage for male tutors will eventually rise.
D) the equilibrium wage for male and female tutors will remain different, even in the long run equilibrium.
Correct Answer:
Verified
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