1. Money-Back-Plus Guarantee. The equilibrium price in a thin market is $3,500. Suppose car dealers provide a special money-back-plus guarantee: A dissatisfied buyer can return a car for a refund plus...

1. Money-Back-Plus Guarantee. The equilibrium price in a thin market is $3,500. Suppose car dealers provide a special money-back-plus guarantee: A dissatisfied buyer can return a car for a refund plus $300.

a. If a lemon owner sells his or her car for $5,000, the owner’s gain from providing the guarantee I s $

.

b. If a plum owner sells his or her car for $5,000, the owner’s gain from providing the guarantee is $

 .