Refer to the diagram, which is a rectangular hyperbola, that is, a curve such that each rectangle drawn from any point on the curve will be of identical area. If this rectangular hyperbola was a demand curve, we could say that it would be
A)elastic at high prices and inelastic at low prices.
B)elastic at low prices and inelastic at high prices.
C)impossible to generalize about its elasticity.
D)of unit elasticity throughout.

Question

Refer to the diagram, which is a rectangular hyperbola, that is, a curve such that each rectangle drawn from any point on the curve will be of identical area. If this rectangular hyperbola was a demand curve, we could say that it would be
A)elastic at high prices and inelastic at low prices. 
B)elastic at low prices and inelastic at high prices. 
C)impossible to generalize about its elasticity. 
D)of unit elasticity throughout.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, which is a rectangular hyperbola, that is, a curve such that each rectangle drawn from any point on the curve will be of identical area. If this rectangular hyperbola was a demand curve, we could say that it would be
A)elastic at high prices and inelastic at low prices. 
B)elastic at low prices and inelastic at high prices. 
C)impossible to generalize about its elasticity. 
D)of unit elasticity throughout.

Refer to the Diagram, Which Is a Rectangular Hyperbola, That