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?
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