When a paper strip is contracted on a table by pushing the ends together, it forms a curve that is identified as a catenary rather than a parabola. The discussion highlights that the curve's shape is influenced by the elastic properties of the paper, particularly when the fingers are not placed at the ends. As the paper is pushed, it transitions from a horizontal position to a bulging curve, which complicates its classification. The resulting shape may not even be a function if the ends are pushed too close together, resembling a light bulb shape. The conversation concludes with a query about whether the curve could exhibit any parabolic properties, such as having a single focal point.