1. GM will temporarily lay off 1300 employees as the company stops its production of the electric car, Chevy Volt, for five weeks. GM planned to sell 10,000 Chevy Volts last year but could sell only about 7,671.

a) Can you tell why they could sell only ~7000 Chevy Volt cars last year? Based on your answer, can you tell how the market price of Chevy Volts might have changed?

b) Now GM has decided to temporarily stop production of Chevy Volts. Why do you think they have taken this temporary shutdown decision?

c) Under what condition do you think GM will start production of the Chevy Volts again ?