Suppose that (similar to Figure 12.3 in the text) the market demand for female workers depends on the relative wage of females to males, WF/WM, in the following manner: WF/WM = 1.1 - 0.0001NF if the number of female workers is less than 1,000, where NF is the number of female workers hired in the market; WF/WM = 1 if the number of female workers is between 1,001 and 5,000; and WF/WM = 1.5 - 0.0001NF if the number of female workers is above 5,000. Graph this demand curve, and calculate the relative wage of female workers when the number hired is 200, 2,000, and 7,000. When does discrimination harm female workers in this market?

Figure 12.3

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Market Demand for Women or Minorities as a Function of Relative Wages Relative Wage: WF/WM 1.0 0.75 0 S Demand N N N Number of Women or Minorities Hired