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guajiro [1.7K]
3 years ago
14

If government regulation forces firms in an industry to internalize the externality, then the a. supply curve shifts to the left

. b. supply curve shifts to the right. c. demand curve shifts to the left. d. demand curve shifts to the right. e. supply curve and the demand curve shift to the left.
Business
1 answer:
Assoli18 [71]3 years ago
4 0

Answer:

E supply curve and the demand curve shift to the left.

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Explanation:

The price elasticity of demand (PED) measures how much the quantity demanded of a product or service changes proportionally to a change in the price of the product or service.

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When the PED is inelastic, if the price of a product or service changes 1%, then the quantity demanded will change less than 1%.

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Cellular Talk is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25% a ye
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