On all points of a rectangular hyperbola demand curve, elasticity of demand will be-
(Choose the correct alternative)
(a) equal to unity
(b) greater than unity
(c) less than unity
(d) zero
Dear Student,
If the demand curve is a rectangular hyperbola, then elasticity at every point along the demand curve will be equal to 1. This curve is also known as unitary elastic demand curve.
So, option a is correct.
Regards
If the demand curve is a rectangular hyperbola, then elasticity at every point along the demand curve will be equal to 1. This curve is also known as unitary elastic demand curve.
So, option a is correct.
Regards