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?A baseball team plays in a stadium that seats 55,000 spectators. With ticket prices at
Chapter 4, Problem 67(choose chapter or problem)
A baseball team plays in a stadium that seats 55,000 spectators. With ticket prices at $10, the average attendance had been 27,000. When ticket prices were lowered to $8, the average attendance rose to 33,000.
(a) Find the demand function, assuming that it is linear.
(b) How should ticket prices be set to maximize revenue?
Questions & Answers
QUESTION:
A baseball team plays in a stadium that seats 55,000 spectators. With ticket prices at $10, the average attendance had been 27,000. When ticket prices were lowered to $8, the average attendance rose to 33,000.
(a) Find the demand function, assuming that it is linear.
(b) How should ticket prices be set to maximize revenue?
ANSWER:
Step 1 of 6
a)
Let
be the demand function.
From the data we are given, we have
and