If the demand curve for a good is given by the equation q = 2/p, where q is quantity and p is price, then at any positive price, the elasticity of demand will be -1.

Name: If the demand curve for a good is given by the equation q = 2/p, where q is quantity and p is price, then at any positive price, the elasticity of demand will be -1.
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Question

Quizplus · Accepted Answer

The demand curve q = 2/p is a rectangular hyperbola, which means the elasticity of demand is constant and equal to -1 at any positive price.

If the Demand Curve for a Good Is Given by the Equation