Question
The Hotel Bellville has 400 rooms. Currently the hotel is filled . The daily rental is $ 250 per room.
For every $ 14 increase in rent the demand for rooms decreases by 5 rooms.
Let x = the number of $ 14 increases that can be made.
What should x be so as to maximize the revenue of the hotel ?
I don't really understand how to start this problem...Am I supposed to use the point-slope formula? And if so, how do I know which is the independent or dependent variable?
For every $ 14 increase in rent the demand for rooms decreases by 5 rooms.
Let x = the number of $ 14 increases that can be made.
What should x be so as to maximize the revenue of the hotel ?
I don't really understand how to start this problem...Am I supposed to use the point-slope formula? And if so, how do I know which is the independent or dependent variable?
Answers
revenue = rate * #rooms
= (250+14x)(400-5x)
this will be a parabola, where max revenue is at the vertex.
= (250+14x)(400-5x)
this will be a parabola, where max revenue is at the vertex.
thanks!
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