Question

5. A Major League Baseball stadium sells three types of tickets. Reserved tickets are sold for $20 each, field-level tickets are sold for $50 each, and box seat tickets are sold for $100 each. A graph depicts these three types of tickets sold for their Friday night game. What does the point of intersection represent?

A) When all three ticket prices generate the same revenue.
B) When all three types of tickets have sold the same amount.
C) When all three types of tickets cost the same amount
D) When all three types of tickets reach their maximum revenue​

Answer 1

Answer: A) When all three ticket prices generate the same revenue.

Explanation:

Reserved tickets cost $20 each.

Field-level tickets cost $50 each.

Seat tickets cost $100 each.

Then if x represents the number of reserved tickets sold, the total revenue for the reserved tickets will be:

R(x) = x*$20

If w represents the number of field-level tickets sold, the total revenue for field-level tickets will be:

F(w) = w*$50

If y represents the number of seat tickets sold, then the total revenue for the seat tickets will be:

S(y) = y*$100

Those equations will intersect when:

R(x) = F(w) = S(y)

This will mean that they will intersect when all three tickets have the same revenue, then the correct option is:

A) When all three ticket prices generate the same revenue.