The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic.
B) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
C) to ensure that the elasticity has a negative value.
D) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve.
Answer: D
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Spencer and Brander's model highlights the existence of
A) aircraft industries. B) excess returns present in highly competitive markets. C) excess returns, or rents, available in non-competitive markets. D) the futility of government bureaucrats' attempts to build an airplane. E) natural advantages in foreign technology firms.
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