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jimen113
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[SOLVED] Optimization problem
A baseball team plays in the stadium that holds 60000 spectators. With the ticket price at 8 the average attendence has been 24000. When the price dropped to 7, the average attendence rose to 30,000.
a) find the demand function p(x), where x is the number of spectators (assume p(x) is linear p(x)=
b) How should the ticket price be set to maximize revenue?
a) I figured out that the demand function was: 8-(1/6000)(x-24000)
b) I tried to use the revenue formula:; by taking the derivative of the demand function which is: 12-(12,000x/6000[tex]^{}2[/tex])
and then I set that equal to zero and tried to solve for X, which is: 36,000
So, now I don't know how to use the above information to calculate the price of the ticket. any suggestions?
Homework Statement
A baseball team plays in the stadium that holds 60000 spectators. With the ticket price at 8 the average attendence has been 24000. When the price dropped to 7, the average attendence rose to 30,000.
a) find the demand function p(x), where x is the number of spectators (assume p(x) is linear p(x)=
b) How should the ticket price be set to maximize revenue?
Homework Equations
The Attempt at a Solution
a) I figured out that the demand function was: 8-(1/6000)(x-24000)
b) I tried to use the revenue formula:; by taking the derivative of the demand function which is: 12-(12,000x/6000[tex]^{}2[/tex])
and then I set that equal to zero and tried to solve for X, which is: 36,000
So, now I don't know how to use the above information to calculate the price of the ticket. any suggestions?
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