Question

A baseball team plays in a stadium that holds 57,000 spectators. With ticket prices at $10, the average attendance had been 38,000. When ticket prices were lowered to $8, the average attendance rose to 42,000.

Answer 1

The equation of demand function is

`y=-(1)/(2000)x+29`

Explanation:

We have two point demand function

(38000,10) and (42000,8)

Here
`x_1`=38,000,
`y_1`=10,
`x_2`=42000,
`y_2`=8

The slope of the demand function line is

`=(y_2-y_1)/(x_2-x_1)`

`=(8-10)/(42000-38000)`

`=(-2)/(4000)`

`=-(1)/(2000)`

The equation of demand function is

`y-y_1=m(x-x_1)`

`\Rightarrow (y-10)=-(1)/(2000)(x-38000)`

`\Rightarrow y-10=-(1)/(2000)x+(38000)/(2000)`

`\Rightarrow y=-(1)/(2000)x+19+10`

`\Rightarrow y=-(1)/(2000)x+29`