Which one of the following statements is correct regarding the slope and the point elasticity on all the points on a rectangular hyperbola shaped demand curve of a product?

Correct option is B

A rectangular hyperbola shaped demand curve represents a situation where the elasticity of demand varies along the curve. The point elasticity of demand, which measures the responsiveness of quantity demanded to price changes at a specific point on the curve, remains constant. However, the slope of the demand curve changes as we move along the curve.
As we move along a rectangular hyperbola shaped demand curve from left to right, the slope becomes steeper. This indicates that the quantity demanded is more responsive to price changes in the lower range of prices and less responsive to price changes in the higher range of prices.
The point elasticity of demand, on the other hand, remains constant at all points on the curve. This means that at any given point, the ratio of the percentage change in quantity demanded to the percentage change in price is the same.