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The equation of the rectangular hyperbola with its asymptotes as the coordinate axes is xy = c2 , where c is constant, is called the simplest form of a rectangular hyperbola.

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Let x2 - y2 = a2 be rectangular hyperbola. Now, rotate the axes about the origin through π/4 in the clockwise direction so that the asymptotes become coordinate axes [because the angle between the asymptotes of x2 - y2 = a2 is 2sec-1 (√2) which equal to  π/2 ]. Then

We write c = a/√2 so that xy = c2 . Also xy = c2 ⇒either both x and y are positive or both x and y are negative. 

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