Market Structures Supply & Demand

Pink Tax

Jonah has dressed up a few mannequins to represent women doing particular jobs in the store. Dina comments on how this t-shirt activism is really helpful for the store’s profits, particularly because the outfit that Jonah has put together has a higher price tag than a similar combination targeted at boys. Jonah argues that it promotes gender equality, but Dina points out that the shirt costs $12.99 for women, but only $7.99 for men. Jonah tries to argue from a cost perspective, noting that glitter is more expensive, but Dina argues that it’s just a pink tax, charging women more for the same product, like clothes, razors, and deodorant.


Discrimination a la Becker

While Amy is a bit confused with her new love interest, her coworkers are debating the necessary requirements to be considered racist. In Becker’s discrimination model, firms are assumed to have preferences for one group of workers relative to others. In the taste for discrimination model, firms demand more workers from a preferred group. Dina nicely points out, “Isn’t having a preference the definition of racism?”