Question

Why is the demand curve with constant unitary elasticity concave?

Short answer

Because price decreases do not have the same absolute worth.

Step-by-step solution

Definition

Demand curve:

The demand curve will be a graph that depicts the link between the worth of a commodity or service and also the quantity demanded overtime. the value will display on the left vertical axis, and therefore the amount needed on the horizontal axis, in an exceedingly typical representation.

Explanation

Because the absolute value of price reductions is not equal, the demand curve with constant unitary elasticity is concave. The left side of the curve begins with high pricing, and as it descends toward the right side, prices reduce by decreasing amounts. This creates a curved, concave shape with a steeper demand slope on the left and a flatter demand slope on the right.