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)
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Chapter11: Public Goods And Common Resources
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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
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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