Final answer:
To solve the airplane booking problem with high and low fares, substitute the fare values into the demand function n(x) = mu^x. Evaluate n(764) and n(187) to find the demand at high and low fares.
Step-by-step explanation:
When solving the airplane booking problem, we need to consider the high fare and low fare given. Let's assume the demand for business travelers is given by the function n(x) = mu^x, where x represents the fare and mu represents the demand parameter.
To find the demand at the high fare ($764), we substitute x = 764 into the demand function: n(764) = mu^764.
Similarly, to find the demand at the low fare ($187), we substitute x = 187 into the demand function: n(187) = mu^187.
By finding the values of n(764) and n(187), we can determine the demand for business travelers at the high and low fares.