What economic effect works to eliminate sex and race discrimination?
◦ Firms hire only the preferred races and sex.
◦ Lower paid races and sexes give up working and drop out of the labor supply.
◦ Customers who discriminate pay higher prices to buy from preferred races and sex.
◦ The value of marginal product of the less preferred races and sexes eventually increases.
◦ Lower paid races and sexes decrease their demand for goods and services.