Given the demand function Qd= 173-5p, determine the price where demand has a unit
elasticity.
The unit elasticity means that we have:
dq/dp=−q/p
Now we have:
q=173−5p
dq/dp=−5
So now, we have:
−5=−q/p
−5=(−(173−5p))/p
p=17.3
So this is the price that we will get.