Statement – I : A rectangular hyperbola shaped demand curve has uniform slopes on all its points. Statement – II : If the price elasticity is equal to unity, the marginal revenue corresponds to zero. Code :
Statement – I is incorrect while Statement – II is correct
A rectangular hyperbola demand curve is the special demand curve along which total expenditure by consumers (price times quantity) stays exactly the same at every point. We judge both statements against this property.
Statement I claims the curve has a uniform slope at all its points. This is false. A rectangular hyperbola gets steeper near the price axis and flatter near the quantity axis; its slope changes continuously and is never constant. What actually stays constant along it is not the slope but the price elasticity of demand, which equals one (unitary) at every single point - that is the true defining feature people sometimes confuse with 'uniform slope'.
Statement II says the marginal revenue is zero. This is true. Since total revenue (price multiplied by quantity) is constant everywhere on a rectangular hyperbola demand curve, any change in quantity leaves total revenue unchanged. Marginal revenue is the change in total revenue per extra unit sold, so it must be zero throughout, and the MR curve coincides with the horizontal axis.
So Statement I is incorrect while Statement II is correct, which matches the fourth code.
Hence the correct code is that Statement I is incorrect, but Statement II is correct.
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