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(Figure: Externalities and Network Effects) Based on the Graph, If

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(Figure: Externalities and Network Effects) Based on the graph, if a consumer leaves the social network depicted, DP shifts right and DS shifts right.
(Figure: Externalities and Network Effects) Based on the graph, if a consumer leaves the social network depicted, D<sub>P</sub> shifts right and D<sub>S</sub> shifts right.


Definitions:

Debt Ratio

A ratio indicating the ratio of a company's total liabilities to its overall assets.

Financial Leverage

The use of borrowed funds to enhance the potential return of an investment.

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties at a given point in time.

Total Assets

The sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, represented on the balance sheet.

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