Question

philippine airlines transport around 800 passengers a month between manila and bacolod. a round trip ticket is 5,000.00 pesos. the company executives estimate that for each 300 pesos increase in the ticket price, 30 passengers would be lost to the competition. what ticket price would maximize income for the company? how much will be the revenue?

Answer 1

let the number of 300 pesos increases by n

after the change,
the cost of a ticket = 5000 + 300n
number of passengers = 800 - 30n

revenue = R = (5000+300n)(800-30n)

expand to get a quadratic function.

Find the vertex of that quadratic using your favourite method and you are almost there.

Answer 2

tnx