Posted by Melissa on Thursday, November 4, 2010 at 7:12am.
Given the demand function q=1735p, determine the price where demand has unit elasticity.

Calculus  MathMate, Thursday, November 4, 2010 at 11:32am
Since the pq curve has negative slope (which is normal), unit elasticity means 1.
Elasticity = (ΔQ/Q) / (ΔP/P)
=(ΔQ/ΔP) / (P/Q)
=(dQ/dP)*(P/Q)
=1
dQ/dP = d(1735P)/dP = 5
Therefore
5*(P/Q) = 1
5P = 1(1735P)
Solve for P to get P=17.3