In the standard Becker model of discrimination, assume that 10% of employers are color-blind and have a discrimination coefficient d equal to 0, 30% have d-0.25, and the remaining employers have d-0.50. If black workers, who have a perfectly inelastic labor supply function, comprise 20% of the labor force, which of the following best describes the resulting market equilibrium? O There is not enough information to determine the relative wage(s) earned by black workers in this market. O Half of the black workers earn the equilibrium "white" wage; the remaining half earn 75% of the white wage. Black workers earn 80% of the equilibrium "white" wage. O Half of the black workers earn the equilibrium "white" wage; the remaining half earn 80% of the white wage. O Black workers earn 50% of the equilibrium "white" wage.

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.