Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced. a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? ________cars How many workers will it hire? ________workers b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? ______cars How many fewer workers will it need if it decides to match production to these lower sales? _________workers
Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced. a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? ________cars How many workers will it hire? ________workers b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? ______cars How many fewer workers will it need if it decides to match production to these lower sales? _________workers
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 9PA
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Question
Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced.
a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce?
________cars
How many workers will it hire?
________workers
b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell?
______cars
How many fewer workers will it need if it decides to match production to these lower sales?
_________workers
![Price
Automobile Market
Fixed Prices
$37,000 A
700
B'
900
-DL
Cars per week
C²
DM
1,150
DH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F964b314c-ab03-40fd-bef8-1786b90fcf9b%2F6edd9073-71ab-4e1d-a7b8-3bb0b447e14d%2Fawuq7zha_processed.png&w=3840&q=75)
Transcribed Image Text:Price
Automobile Market
Fixed Prices
$37,000 A
700
B'
900
-DL
Cars per week
C²
DM
1,150
DH
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