Using two demand and supply diagrams, one for the low-wage labor market and one for the

Chapter 14, Problem 8

(choose chapter or problem)

Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-income workers like file clerks and telephone receptionists.

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