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Last year, 350 people come to see a spring concert at REL. The cost per ticket was $5.00. The orchestra committee wants to increase ticket prices but it is estimated that for each increase in $0.25, 10 fewer people will attend the concert. What should the committee set the ticket price to maximize ticket sales.

User Demos
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2 Answers

4 votes

Answer:

max: 10 price: 7.5

Explanation:

User Leanna
by
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4 votes
let 0.25x is the price increase. Therefore, the number of attendees will be 350-10x and the revenue R=(350-10x)*(5+0.25x)=1750+37.5x-2.5x^2. This parabola has maximum at x=10, meaning the price=7.5
User Michael Taggart
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