You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the cover charge (entrance fee). One week you charged $9 per guest and averaged 160 guests per night. The next week you charged $11 per guest and averaged 140 guests per night.

Question

You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the cover charge (entrance fee). One week you charged $9 per guest and averaged 160 guests per night. The next week you charged $11 per guest and averaged 140 guests per night.
 (a) Find a linear demand equation showing the number of guests q per night as a function of the cover charge p.

Steve · Answer

q = ap+b 160 = 9a+b 140 = 11a+b a = -10 b = 250 q = 250 - 10p