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
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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