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Scenario 2.1
Tia's Tamale Factory employs 50 workers to make and ship food products all over the United States. Tia's factory is located in Southern California, in a community where 60 percent of the residents have Spanish surnames or identify themselves as Hispanic. Tia must hire a new cook and despite her best efforts, she gets only three applicants. Conchita is a 35-year-old Hispanic female, Sancho is a 17-year-old Hispanic male, and Maureen is a 48-year-old white woman who uses a wheelchair.
-Refer to Scenario 2.1. Suppose Tia does not hire Sancho. Which of the following regulations could Sancho use in an attempt to claim that Tia discriminated against him?
Deadweight Loss
A loss in total societal welfare that occurs when market equilibrium is not achieved or when market imperfections exist, leading to inefficient allocation of resources.
Relatively Inelastic
Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price.
Deadweight Loss
A situation where inefficiency in the market leads to a loss of total social welfare, typified by a gap between the supply and demand curves.
Relatively Elastic
Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.
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