A rectangular hyperbola Shaped demand curve on all its points has _____________.

equal slopes of the price demand curve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

price elasticity equal to unity

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

varying price elasticity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both slope and price elasticity equal

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B price elasticity equal to unity
Rectangular hyperbola is a curve under which all rectangular areas are equal. When the elasticity of demand is equal to unity (e_d = 1) at all points of demand curve, then the demand curve is rectangular hyperbola.

Suggest Corrections

Similar questions

= 0

\infty

When the slope of demand curve = infinity, the price elasticity of demand = 0.

\infty

Join BYJU'S Learning Program