Question

Draw the demand curve showing unitary elastic demand all through.

Draw demand curves showing elasticity equal to one.

Draw a diagram to show the elasticity of demand when it is Unity.

Draw demand curve with unitary elasticity.

Draw a demand curve which has unit price elasticity everywhere.

Answer 1

Unitary elasticity is present at every point on demand curve D₃. A rectangular hyperbola curve is the name given to such a curve. A rectangular hyperbola curve, as used in mathematics, is a curve where the total area of the rectangles at various locations on the curve is equal. Such a circle uniformly extends towards the X and Y axes, yet it never makes contact with them. As a result, a rectangular hyperbola is the shape that the demand curve exhibiting unitary elasticity of demand on each of its points takes. Unitary elastic demand cases are quite uncommon.