According to market theory of wage determination, under what circumstances will wages for a particular group be highest?
a. when supply is high and demand is low
b. when there is now demand for this type of labor
c. when demand is high and supply is low
d. when all things are equal

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold