Assignment:
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?
Provide complete and step by step solution for the question and show calculations and use formulas.