Refer to the figure below and assume that price is fixed at $36,000 and that Buzzer Auto needs five workers for every automobile produced. $36,000 DH DM DL 1220 770 920 Cars per week If demand is DMand Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? How many workers will it hire? If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? How many fewer workers will it need if it decides to match production to these lower sales? Price

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
21
Refer to the figure below and assume that price is fixed at $36,000 and that Buzzer Auto needs five workers for every automobile
produced.
$36,000
DH
DL
770
920
Cars per week
1220
If demand is DMand Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce?
How many workers will it hire?
If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell?
How many fewer workers will it need if it decides to match production to these lower sales?
Price
Transcribed Image Text:21 Refer to the figure below and assume that price is fixed at $36,000 and that Buzzer Auto needs five workers for every automobile produced. $36,000 DH DL 770 920 Cars per week 1220 If demand is DMand Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? How many workers will it hire? If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? How many fewer workers will it need if it decides to match production to these lower sales? Price
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