The attendance is a straight line through the two points (11,30) and (8,37)
a = -7/3 (t-8)+37
Revenue = price * attendance
r(t) = t(-7/3 (t-8)+37) = 1/3 (167t-7t^2)
The vertex is at t = -b/2a = 167/14 = $11.93
A baseball team plays in a stadium that holds 74000 spectators. With the ticket price at $11, the average attendance has been 30000. When the price dropped to $8, the average attendance rose to 37000. Assume that attendance is linearly related to the ticket price.
What ticket price would maximize revenue?
1 answer
1 answer