The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic.
B) to ensure that the elasticity has a negative value.
C) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve.
D) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
C
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Monopolistically competitive firms can differentiate their products
A) by producing where marginal revenue equals marginal cost. B) through marketing. C) by equating price and average total cost. D) by producing at minimum efficient scale.
Adverse selection is
a. when people act differently because they are insured b. when more risk averse people want to be insured more c. when people at greater risk want to be insured more d. when your guess at a test question is wrong