Answer
a) Quantity and price both increase.
b) The value of the marginal product increases. The marginal product stays the same.
c) Both the demand and the equilibrium wage would increase.
Work Step by Step
a) This new law would shift the demand curve to the right, so the equilibrium quantity would increase and the equilibrium price would increase.
b) Since the price of apples increased, the value of the marginal product also increases. However, there is no increase in the marginal product due to having the same quantity of workers.
c) The increased value of the marginal product shifts the demand curve to the right. This shift increases the quantity of labor and the equilibrium wage.