If demand is unit elastic at all prices,then the demand curve is
A)a straight line.
B)a parabola.
C)a rectangular hyperbola.
D)upward sloping.
E)perfectly horizontal.

Question

Quizplus · Accepted Answer

A rectangular hyperbola is the graph of unit elastic demand, where the price elasticity of demand is -1 at all points on the curve. This means that a 1% change in price will result in a 1% change in quantity demanded, resulting in a rectangular hyperbola shape.

If Demand Is Unit Elastic at All Prices,then the Demand