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-Write a formula fro the revenue, \'R\', as a function of the number of 10 cent

ID: 2880333 • Letter: #

Question

-Write a formula fro the revenue, 'R', as a function of the number of 10 cent decreases in price 'x' if 'A' tickets are sold at a price of 'p' dollars.

-Solve p(x)=0 and explain what it means in the context of the situation.

-Solve A(x)=0 and explain what it means in the context of the situation.

-Solve R(x)=0 and explain what it means in the context of the situation.

-Expand R(x) into the form y=ax2+bx+c and interperate the parameters a, b, and c.

Let p denote the price of the theater's movie ticket and assume that the theater seats 2,000 people in total throughout all of it screen rooms. Suppose that with ticket prices at $12 the average attendance last month was 1,000. Further suppose that the theater conducted a survey and discovered that for every 10 cents the ticket price dropped the theater would attract another 20 moviegoers.

Explanation / Answer

Average film goers =1000

Capacity = 2000

Let x times the price be decreased.

Then price = p(x) = 12-0.1 x

p(x) =0 gives 0.1 x =12 or x =120

120 times 10cents decreased so that price of ticket became zero.

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A(x) = No of tickets sold = 1000+20x

A(x) =0 gives x = -50

i.e. 50 times 10 cents increased no of movie goers will be nil

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R(x) = A(x) P(X) = (12-0.1x)(1000+20x)

= 12000+140x-2x2

R(x) =0 implies either x = 120 or x = -50

120 times decreased or 50 times increased.

R(x) = 12000+140x-2x2

Quadratic with a = -2, b =140 and c = 12000

Even when no change is there in price, Revenue will be 12000 (same as for last month)