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GetThere Airlines currently charges  200 dollars per ticket and sells 40,000 tickets a week. For every 10 dollars they increase the ticket price, they sell  100 fewer tickets a week. How many dollars should they charge to maximize their total revenue?

 Feb 12, 2021
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revenue = (40 000 - 100x)(200 + 10x)                     where x = the number of 10 dollar inreases

   revenue =   - 1000x^2 + 380 000 x +   8 000 000    simplify a bit (to make it easier to work)

                                - x^2 + 380 x  + 8000

 

Max will be at   - b/2a =   - 380 /(2(-1)) = 190 = x

 

190 x 10 = 1900       increase              1900 + 200 = 2100 dollars for max revenue   (Yikes!    That doesn't seem correct....check my math!)

 Feb 12, 2021

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