Suppose that x thousand units of a particular commodity are sold each month when the price is p dollars per unit, where

The total monthly consumer expenditure E is the total amount of money consumers spend during each month.

a. Express total monthly expenditure E as a function of the unit price p, and sketch the graph of E(p).

b. Discuss the economic significance of the p intercepts of the expenditure function E(p).

c. Use the graph in part (a) to determine the market price that generates the greatest total monthly consumer expenditure. How many units will be sold during each month at the optimal price?

Transcribed Image Text:

p(x) = 5(24x)