A demand curve that is the shape of a rectangular hyperbola
A) is inelastic over the whole curve.
B) has the same elasticity as a straight- line demand curve.
C) is elastic over the whole curve.
D) has an elasticity of 100 percent over the whole curve.
E) is unit elastic over the whole curve.

Question

Quizplus · Accepted Answer

A rectangular hyperbola demand curve represents a situation where the elasticity is constant and equal to one (unit elastic) over the entire curve.

A Demand Curve That Is the Shape of a Rectangular