FIGURE 4-1
-Refer to Figure 4-1,which shows two demand curves,one linear and the other a rectangular hyperbola.The price elasticity of demand is equal to one along the entire demand curve in
A)diagram 1 only.
B)diagram 2 only.
C)both diagrams.
D)neither diagram.

Question

FIGURE 4-1
-Refer to Figure 4-1,which shows two demand curves,one linear and the other a rectangular hyperbola.The price elasticity of demand is equal to one along the entire demand curve in
A)diagram 1 only. 
B)diagram 2 only. 
C)both diagrams. 
D)neither diagram.

Quizplus · Accepted Answer

A rectangular hyperbola demand curve represents a constant price elasticity of demand equal to one along the entire curve.

FIGURE 4-1 -Refer to Figure 4-1,which Shows Two Demand Curves,one Linear and Linear