If the demand curve is a rectangular hyperbola elasticity co-efficient value is ____.

one

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zero

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Infinity

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less than one

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Solution

The correct option is A one
When the percentage change in the quantity demanded is equal to the percentage change in the price, then the demand for the commodity is said to be unitary elastic. It is also equal to one and the demand curve is also called a rectangular hyperbola. Hence, its co-efficient value is one.

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Elasticity of demand is different at different points of a demand curve, unless demand curve is a rectangular hyperbola.

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