Question:
When Elasticity of Demand is 1 at every point on the Demand Curve, this curve is known as:
When Elasticity of Demand is 1 at every point on the Demand Curve, this curve is known as:
Updated On: Oct 29, 2024
- Perfectly inelastic demand curve
- Perfectly elastic demand curve
- Rectangular Hyperbola
- Greater than unitary demand curve
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The Correct Option is C
Solution and Explanation
A demand curve with unitary elasticity at every point is a rectangular hyperbola, where total revenue remains constant.
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