Question

A baseball team plays in a stadium that holds 60000 spectators. With the ticket price at $11 the average

attendance has been 26000. When the price dropped to $8, the average attendance rose to 30000. Find a
demand function D(q), where q is the quantity/number of the spectators. (Assume D(q) is linear)
D(q)
(For best results, keep answers in fraction form, not decimals)

Answer 1

D(q) = -(3)/(4,000)q+19.5

Explanation:

Given:

overall capacity = 60000

price in point one = 11

spectators in first point = 26000

second point - price = 8

spectators = 30000

solution:

The demand of a product as a function of its price and other factors such as the prices of the substitutes and complementary goods, income is the expression known as demand function. It is represented by D(q)

we have two points in our line for given ques:

first point of line = (26,000, 11)

second point of line = (30,000, 8)

Slope = (11 - 8)/(26,000 - 30,000)

= (3)/(-4,000)

y = mx + b

here, b = factors influencing demand besides price

m = slope

x = price

10 = (3)/(-4,000) )(26,000) + b

b = 19.5

y = -(3)/(4,000)+19.5

D(q) = -(3)/(4,000)q+19.5