Khushi S.

asked • 04/06/22

Could someone help me with this max revenue question? I keep getting the wrong answer and I don’t know why

A bus service carries 10,000 people daily between Cybervelle and Steeptown, and the company has space to serve up to 15,000 people per day. The cost to ride the bus is $20. Market research shows that if the fare is increased by $0.50, 200 fewer people will ride the bus. What fare should be charged to get maximum revenue, given that the bus company must have at least $130,000 in fares a day to cover operating costs.


answer: new fare is $22.50 and max revenue is $202,500

1 Expert Answer

By:

Marion J. answered • 04/06/22

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