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An Ariline currently charges 200 dollars per ticket and sells 40,000 tickets a week. For every 10 dollars they increase the ticket price, they sell 800 fewer tickets a week. How many dollars should they charge to maximize their total revenue?

 Sep 30, 2020
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Ticket price = (200 + 10x)

# tix = 40 000 - 800x

 

Revenue = (200+10x) * (40000- 800x)

     expand quadratic then find max  x  as  - b/ 2a      x is the number of $10 increases

 

Ticket price will then be 200 +   x * 10    for maximum revenue

 Sep 30, 2020

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