Blogonomics

Looking at the current demand and supply curves for GM, what do you think GM must do to become economically sound again? Explain whether the supply curve needs to shift upwards to the left or downwards to the right and why. Also, explain what would happen to the quantity demanded for GM cars once GM accomplishes the necessary steps on the supply side. Think of how consumers and suppliers behave in terms of quantity at any given price, and what variables can shift the supply curve to meet or increase the quantity demanded by consumers at a given price level.