Problem

CONSUMER EXPENDITURE The demand for a certain commodity is D(x) = − 50x +800; that is, x u...

CONSUMER EXPENDITURE 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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