A rectangular hyperbola-shaped demand curve on all its point has

Equal slopes and equal point elasticities
Unequal slopes and unequal point elasticities
Unequal slopes and equal point elasticities
None of the above

The correct answer is: A. Equal slopes and equal point elasticities.

A rectangular hyperbola-shaped demand curve is a type of demand curve that has a constant slope and a constant elasticity. This means that the demand curve is linear and that the price elasticity of demand is the same at all points on the curve.

The price elasticity of demand is a measure of how responsive consumers are to changes in price. A demand curve with a constant elasticity means that consumers are equally responsive to changes in price at all points on the curve. This is in contrast to a demand curve with a non-constant elasticity, where consumers are more responsive to changes in price at some points on the curve than at others.

A rectangular hyperbola-shaped demand curve is a theoretical concept that is not often observed in the real world. However, it can be a useful tool for understanding the relationship between price and demand.

Here is a brief explanation of each option:

  • Option B: Unequal slopes and unequal point elasticities. This is not the correct answer because a rectangular hyperbola-shaped demand curve has a constant slope and a constant elasticity.
  • Option C: Unequal slopes and equal point elasticities. This is also not the correct answer because a rectangular hyperbola-shaped demand curve has a constant slope and a constant elasticity.
  • Option D: None of the above. This is the correct answer because the only option that is consistent with the characteristics of a rectangular hyperbola-shaped demand curve is option A.
Exit mobile version