core: 0 of 1 pt 7 of 10 (9 complete) HW Score: 72.5%, 7.25 of 10 pt Bus Econ 2.5
ID: 1155159 • Letter: C
Question
core: 0 of 1 pt 7 of 10 (9 complete) HW Score: 72.5%, 7.25 of 10 pt Bus Econ 2.5.32 Question Help A university is trying to determine what price to charge for tickets to football games. At a price of $26 per ticket, attendance averages 40,000 people per game. Every decrease of $2 adds 10,000 people to the average number. Every person at the game spends an average of $5.00 on concessions. What price per ticket should be charged in order to maximize revenue? How many people will attend at that price? What is the price per ticket?Explanation / Answer
For every decrease in $2 adds 10000 people, so for decrease in $1, it adds 5000 people
Price of ticket = 26-x, where x is decrease in $
No of people = 40000+5000x
Revenue = Price * No of people = (26-x)*(40000+5000x)
Revenue = 1040000+130000x-40000x-5000x^2
Revenue = -5000x^2+90000x+1040000
Solving for x we get x = 9
So, the price per ticket is 26-x = 26-9 = $17
No of people = 40000+5000*9 = 85000
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