A demand curve that has constant price elasticity of demand coefficient equals to 1 at all points is a(n):
A) rectangular hyperbola.
B) downward-sloping straight line.
C) upward-sloping straight line.
D) none of the above.

Question

A demand curve that has constant price elasticity of demand coefficient equals to 1 at all points is a(n):
A) rectangular hyperbola.
B) downward-sloping straight line.
C) upward-sloping straight line.
D) none of the above.

Quizplus · Accepted Answer

A rectangular hyperbola has a constant slope, which implies a constant price elasticity of demand coefficient equal to 1 at all points.

A Demand Curve That Has Constant Price Elasticity of Demand