Browse over 20 million
homework answers & study documents

Economics

ECO 550 Assignment 3

Type

Homework

Rating

Showing Page:
1/3
ECO 550 Assignment 4 Levels General Motors
Assignment 4: Automotive Production Levels
General Motors
Eco 550 - Managerial Economics and Globalization
General Motors Company
General Motors Corporation (GM) is the largest company in an industry
that has a major impact on the American economy and in the world. GM
has led the auto industry in innovation and for most of the 20th century.
From 1931 to 2008 GM led in the industry only to be surpassed by
Toyota in 2008.
After major cutbacks for over two years, GM found itself at the brink of
bankruptcy and accepted government financial assistance and plan for
debt reconstruction and recovery. Under this plan, brands Chevrolet,
Cadillac, and GMC became the base brands for General Motors
Company. General Motors sales cars in 31 countries, these brands also
include Opel, Holden, and Vauxhall.
The law of demand states that the higher the price of a good or service,
the less likely will people have a demand for that good or service with all
other factors being constant. As a result the higher priced a GM product
the less quantity demand by the consumer. A picture of this would
indicate a downward slope in the demand curve.
The law of supply states that quantities sold at a higher price will cause
an upward slope in the curve and unlike the demand curve the price will
remain high because this will increase revenue. In the example to the
Chevrolet Camaro a slack in production may increase the price even
more because of scarcity. The effect can even be sought for a specific
color or equipment.

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Just what I needed… fantastic!

Anonymous
Just what I needed. This document gave me a good start on tailoring my own answer.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4