Quiz04_Solutions

Quiz04_Solutions - This is what you want to maximize, so...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
QUIZ 4 SOLUTIONS #1: We want a linear function relating price to number of tickets sold. We are told that an increase of $5 results in a decrease of 3,500 tickets. Our x is price, our f(x) is tickets, so the slope of our function is (change in # tickets / change in price) = -3500/$5 = -700. The y-intercept can be found if we let x=$15, y=24,500, and m=-700, so: b mx y + = Æ b + = ) 15 ( 700 500 , 24 Æ b=35,500. So #1a is 000 , 35 700 ) ( + = x x s Revenue = price * # tickets sold, so x x x x s x r 35000 700 * ) ( ) ( 2 + = = (#1b)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: This is what you want to maximize, so let a=-700, b=35000, so 25 $ 1400 35000 2 = = a b So the optimal ticket price is x=$25. (#1c) Using your model from part a, set s(x)=0 50 $ ) ( 700 35000 = = x x http://www.math.uri.edu/~bkaskosz/flashmo/fungraph/ As you can see, at x=25, the function has maximum value. Theoretically at x=50, no one would attend, and at x=0 you could sell 35,000 tickets but since price=0, revenue=0 #2:...
View Full Document

This note was uploaded on 03/08/2009 for the course 640 115 taught by Professor Wey during the Fall '08 term at Rutgers.

Page1 / 2

Quiz04_Solutions - This is what you want to maximize, so...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online