Discussion 2 MAXIMIZING CONSUMER'S SPENDING

label Accounting
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schedule 1 Day
account_balance_wallet $5

The total amount spent by Americans on shoes and clothing from 2000 to 2009 can be modeled by
f(x)=-4.979x^2+71.73x+97.29

where x=0 represents 2000 and f(x) is in billions of dollars. Based on this model in what year did spending on shoes and clothing reach a maximum? (Source: Bureau of Economic Analysis).

Oct 28th, 2014

f(x)=-4.979x2+71.73x+97.29

f’(x) = -9.958x+71.73=0

9.958x=71.73

x= 71.73/9.958=7.203

f’’(x) =-9.958 < 0

Between 2007 to 2008, the spending on shoes is maximum.

Oct 28th, 2014

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Oct 28th, 2014
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Oct 28th, 2014
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