Question

Will a free market tend to encourage or discourage discrimination? Explain briefly.

Short answer

A free market tends to discourage discrimination.

Step-by-step solution

Introduction

A free market is one that is unrestricted by government interference like quotas, tariffs, taxes, and quality regulations.

Explanation

Competitive markets, in an ideal world, motivate profit-seeking businesses to forestall prejudice. If an organisation refuses to supply its products to customers due to racial or gender discrimination, it will lose money. Other profit-driven employers are able to hire women and blacks if companies refuse to pay them a wage supported their productivity. Business owners are forced to create purchasing, selling, hiring, and promotion choices only on the premise of economic considerations in a very free market.

Conclusion

Therefore, businesses are a part of society, discrimination will cause them to lose money and leave the market.