Let there be two types of workers in the market, Ts and Vs, and they are equally productive. And let there be prejudice among some firms against Ts. Modeling the wage gap between Ts and Vs show graphically all (for varying levels of supply of T-type workers) the possible effects of:

A. A decrease in the number of non-prejudiced firms.

B. A decrease in the degree of prejudice among those employers who are. For parts A & B, show your answers graphically and comment on the changes in both the wage gap and the number of Ts hired in the market (i.e. did they go up or down).

C. Show in a graph a situation where there would be no discrimination, even though there is prejudice.