Question: a. Explain why the less price elastic the demand, the better it will be for firms. b. Explain the concept of spreading of risk, law

  1. a. Explain why the less price elastic the demand, the better it will be for firms. b. Explain the concept of spreading of risk, law of large number, independent risks, diversification in the insurance company c. Explain 'irrational' consumer choices and give the examples

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