However, if the majority of competitors achieve gross profit margins of 25%, that’s a sign that the original company may be in financial trouble. Liquidity ratios provide a view of a company’s short-term liquidity (its ability to pay bills that are due within a year). It means that a company has enough in current assets […]

Ipso facto, any point below the mid-point towards the A’-axis will show elastic demand. Elasticity becomes zero when the demand curve touches the X -axis. Price decreases from $8 to $6, quantity demanded increases from 20 units to 40 units. Price increases from $6 to $8, quantity demanded decreases from 40 units to 20 units. […]