A Labor Market Is Divided into Two Segments

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.Then the development of worker prejudice that reduces the hiring of minorities in one segment can lead to a

A) permanent increase in labor supply in the discriminating segment
B) permanent increase in labor supply in the nondiscriminating sector
C) temporary change in the composition of labor in both segments which will revert back to an equal distribution of workers eventually
D) temporary increase in labor supply in both segments
E) temporary change in wage rates in both segments

Correct Answer:

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