It is often called a personal injury lawsuit.
This term shows how responsive the quantity of demand for a product will be when you change the price. People will not always purchase your product if the price is too high.
Answer:
elasticity of demand is 2.16. Consumers pay a smaller portion of the tax
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
(2/19)(2/41) = 2.16
When the coefficient of elasticity is greater than 1, demand is elastic.
Elastic demand means that a small change in price leads to a greater change in quantity demanded.
Because demand is elastic, more of the burden of the tax falls on producers and consumers pay a small portion of the tax.
I hope my answer helps you
Answer:
If price is less than minimum average variable cost, resulting losses will cause firms to leave the industry.
