Question: The demand for a certain commodity is D(x) = 50x + 800; that is, x units of the commodity will be demanded by consumers when

The demand for a certain commodity is D(x) = −50x + 800; that is, x units of the commodity will be demanded by consumers when the price is p = D(x) dollars per unit. Total consumer expenditure E(x) is the amount of money consumers pay to buy x units of the commodity.

a. Express consumer expenditure as a function of x, and sketch the graph of E(x).

b. Use the graph in part (a) to determine the level of production x at which consumer expenditure is largest. What price p corresponds to maximum consumer expenditure?

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a The function Dp 50p 800 is linear with slope 50 and y intercept ... View full answer

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