Question
Economics Question on The elasticity of demand and its measurement
When Elasticity of Demand is 1 at every point on the Demand Curve, this curve is known as:
A
Perfectly inelastic demand curve
B
Perfectly elastic demand curve
C
Rectangular Hyperbola
D
Greater than unitary demand curve
Answer
Rectangular Hyperbola
Explanation
Solution
A demand curve with unitary elasticity at every point is a rectangular hyperbola, where total revenue remains constant.