Why Is Disparate Impact Considered a Sign of Discrimination Despite

question 6

Essay

Why is disparate impact considered a sign of discrimination despite being a condition in which a company's employment practices lack obvious discriminatory content? Substantiate this with examples. How is it different from disparate treatment? How is it related to the four-fifths rule?

---

Definitions:

Zero Economic Profits

A situation in which a firm's total revenues exactly equal its total costs, implying no excess return over the opportunity cost of resources.

Downward Sloping Demand

A graphical representation of the relationship between the price of a good or service and the quantity demanded, indicating that as price decreases, demand increases.

Price Searcher

A seller that sets the price of its product or service based on demand and supply conditions rather than following the market price.

Market Differentiation

Strategies used by companies to distinguish their products or services from those of competitors, often through branding, quality, or unique features.