Alexis A.

asked • 03/24/21

What ticket price would maximize revenue?

A baseball team plays in a stadium that holds 64000 spectators. With the ticket price at $10 the average attendence has been 27000. When the price dropped to $8, the average attendence rose to 32000. Assume that attendence is linearly related to ticket price.




Samuel O.

tutor
I got $10.40 — check out my video explanation soon!
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03/24/21

Samuel O.

tutor
Shoot, my video didn't upload. Sorry! I found a linear function in slope-intercept form (y = mx+b) to describe the relationship between price and attendance using the two data points. I then wrote an equation for revenue and substituted the attendance (y) with the mx + b from earlier. I then differentiated and looked for where the derivative was 0, which occurred at one place (x = 10.40). This must've been a local maximum because the un-differentiated function was an upside-down parabola (parent function: y = -x^2).
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03/25/21

1 Expert Answer

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Samuel O. answered • 03/24/21

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