Asked by Please help me
The dance company has a $10 cover charge, an average of 200 people will attend. For each $0.25 increase in admission price, the average number attending decreases by 1. What should the owner charge in order to make the most money? what is the maximum money that can be earned?
Answers
Answered by
Steve
If the price is 10.00 + .25x
attendance = 200 - x
money = attendance * price = (200-x)(10.00+.25x)
= -.25x^2 + 40x + 2000
this is a parabola with vertex at x = 40/.5 = 80
at x=80, admission is $30, money = 3600
attendance = 200 - x
money = attendance * price = (200-x)(10.00+.25x)
= -.25x^2 + 40x + 2000
this is a parabola with vertex at x = 40/.5 = 80
at x=80, admission is $30, money = 3600