Answer:
In Act 2 of The Merchant of Venice, Shakespeare explores the idea of prejudice through the interactions between the Christian characters and Shylock, a Jewish moneylender. The Christian characters, including Antonio and Bassanio, hold deep-seated prejudices against Shylock simply because of his Jewish faith.
For example, when Antonio first meets Shylock in Act 1, he insults him by calling him a "cut-throat dog" and accuses him of charging exorbitant interest rates. In Act 2, when Shylock agrees to lend money to Antonio, he makes it clear that he will only do so if Antonio agrees to a bond that would allow him to take a pound of Antonio's flesh if the loan is not repaid.
The Christian characters view this demand as evidence of Shylock's greed and cruelty, rather than as a legitimate contractual agreement. They assume that Shylock is incapable of showing mercy or compassion, simply because he is a Jew. This prejudice is further reinforced by the fact that Shylock is portrayed as a villainous character throughout the play.
Shakespeare also explores the idea of prejudice through the character of Portia, who must disguise herself as a man in order to participate in the trial of Antonio. When Portia, disguised as a male lawyer, asks Shylock to show mercy to Antonio, he responds by saying, "Hath not a Jew eyes? Hath not a Jew hands, organs, dimensions, senses, affections, passions?". This speech highlights the fact that Shylock is capable of feeling the same emotions as any other human being, despite the prejudice and discrimination he faces.
Overall, through the interactions between the Christian characters and Shylock, as well as the character of Portia, Shakespeare explores the damaging effects of prejudice and discrimination.