Define Unitary elastic Demand and draw demand curve for it. What is the significance of a unitary elastic demand curve?

Ans: When percentage change in the quantity demanded is equal to percentage change in price , then demand for such & commodity is said to unitary elastic . In this case ED = 1 and the demand curve is a rectangular hyperbola . Rectangular hyperbola is curve under which the total area at all points will be the same. 

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