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When Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as:
Question

When Elasticity of Demand Curve 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

Correct option is C

A demand curve that is a rectangular hyperbola has an elasticity of exactly 1 at each point along the curve. This means that the percentage change in quantity demanded equals the percentage change in price along the entire curve.

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