A demand curve that has constant price elasticity of demand coefficient equals to one at all points is a(n):
A) rectangular hyperbola.
B) downward-sloping straight line.
C) upward-sloping straight line.
D) none of these.

Question

Quizplus · Accepted Answer

A rectangular hyperbola has constant price elasticity of demand coefficient equals to one at all points. This means that the percentage change in quantity demanded is equal to the percentage change in price, resulting in a straight line with a slope of -1.

A Demand Curve That Has Constant Price Elasticity of Demand