Posted by Melissa on Thursday, November 4, 2010 at 7:12am.
Since the p-q 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(173-5P)/dP = -5
Therefore
-5*(P/Q) = -1
-5P = -1(173-5P)
Solve for P to get P=17.3
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