The above figure shows a labor market with a minimum wage of $8 an hour. How many people are employed when the minimum wage is in place?

Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000 and lemons are worth $4,000. Without effective signals such as warranties, the owners of peaches cannot sell their cars for $10,000 because the

A) owners of peaches cannot convince buyers that their cars are worth $10,000. B) buyers cannot convince owners of peaches to sell their cars for $10,000. C) owners of lemons cannot convince buyers that their cars are worth more than $4,000. D) buyers cannot convince owners of lemons to sell their cars for $4,000.

If a perfectly competitive firm manufacturing chairs decides to produce 100 more chairs, what happens to the market price of a chair?

What will be an ideal response?