Question

A baseball team plays in a stadium that holds 48000 spectators. With the ticket price at $8 the average attendance has been 20000. When the price dropped to $5, the average attendance rose to 24000. a) Find the demand function p(x), where x is the number of the spectators. (Assume that p(x) is linear.) p(x)= b) How should ticket prices be set to maximize revenue? The revenue is maximized by charging $ per ticket.

Answer 1

Answer:

The ticket price should be $10.2

Explanation:

The revenue is given by the equation:

1 /3 (5000x + 102,000) x

dy / dx = -5000 * 2/3 x + 34,000 = 0

x = 10.2

The ticket price should be $10.2 per ticket. This is the optimal price which will maximize the revenue of the stadium.