Question

A baseball team plays in a stadium that holds 52,000 spectators. With ticket prices at $10, the average attendance had been 5,000. When ticket prices were lowered to $8, the average attendance rose to 15,000. (a) Find the demand function (price p as a function of attendance x), assuming it to be linear.

Answer 1

p = (-1/5000)x +11

Explanation:

We are given two points (x, p) as (5000, 10) and (15000, 8). Using the two-point form of the equation of a line, we can find the equation to be ...

y = (y2 -y1)/(x2 -x1)(x -x1) +y1 . . . . . 2-point form

p = (8 -10)/(15000 -5000)(x -5000) +10

p = -2/10000(x -5000) +10

p = -x/5000 +11 . . . . . linear demand function