Refer to Figure 6.1b and assume that price is fixed at $37,000 and that Buzzer Auto needs 5 workers for every 1 automobile produced. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce and how many workers will it hire?

If instead, demand unexpectedly falls from D M 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?

Figure 6.1b:

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Price $37.000 700 D DM 900 1150 Cars per week (b) Fixed price DH