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

Option 1: Perfectly inelastic demand curve

Option 2: Perfectly elastic demand curve

Option 3: Rectangular Hyperbola

 

Option 4: Greater than unitary demand curve


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Rectangular Hyperbola

 


Solution : Rectangular hyperbola is a curve under which all rectangular areas are equal. When elasticity of demand curve is 1 at every point on the demand curve, this curve is known as rectangular hyperbola.

 

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