Questions A baseball team plays in a stadium that holds 58000 spectators. With t

Question

Questions A baseball team plays in a stadium that holds 58000 spectators. With the ticket price at $10 the average attendence has been 22000. When the price dropped to $7, the average attendence rose to 29000. Assume that attendence is linearly related to ticket price Q 1 (0/1) C Q 2 (0.5/1) Q 3 [1/ 1] C Q 4 (0.6/1) Q 5 (0/1) What ticket price would maximize revenue? S Preview Q 7 (0/1) Get help: Video C Q 9 (0/1) Points possible: 1 Unlimited attempts Message instructor about this question License Q 10 (0,1) Q 11 (0/ 1) Q 12 (0,1) Q 13 (0,1) Submit Grade: 2.1/13 Print Version

Explanation / Answer

Given two points are (22000, 10) and (29000, 7)

slope = (7-10)/(29000 -22000) = -3/7000

write price equation as

p - 10 = -3/7000 (x -22000)

p =(-3/7000)x + (136/7)

find revenue as

R=x*p

=(-3/7000)x² + (136/7)x

To, maximize, find

R' =0

-3/3500 x +136/7 = 0

x= (-136/7) *3500/(-3)

x= 68000/3

find price as

p =(-3/7000)*68000/3 + (136/7)

p=$9.71

Ticket price is about $9.71 (round it as needed)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.