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

Question

Quizplus · Accepted Answer

A rectangular hyperbola demand curve represents a situation where the price elasticity of demand is constant and equal to one (unit elastic) at every point along the curve.

A Demand Curve That Is the Shape of a Rectangular