Mathematics – Functions and Graphs
The demand for a certain commodity is given by
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 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 correspnds
to maximum consumer expenditure?
ScholarMatic: Explanation & Answer
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