A city centre tour guide currently charges $27 for a full day's tour. The average number of customers is 32. Market research suggests that for every $1 increase in tour price, the guide can expect to lose 3 customers per tour. (a) If the price increase is $x calculate the expected revenue.
A city centre tour guide currently charges $27 for a full day's tour. The average number of customers is 32. Market research suggests that for every $1 increase in tour price, the guide can expect to lose 3 customers per tour. (a) If the price increase is $x calculate the expected revenue.
Chapter1: Making Economics Decisions
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![A city centre tour guide currently charges $27 for a full day's tour. The average number of
customers is 32. Market research suggests that for every $1 increase in tour price, the guide can
expect to lose 3 customers per tour.
(a) If the price increase is $x calculate the expected revenue.
(b) The guide needs to ensure that the expected revenue is at least $750. By solving a
quadratic inequality, find the range of prices that need to be charged.
(c) What price should be charged to maximise expected revenue?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95f04c32-2a34-49c6-9103-ff9c62205d90%2F32f2d97a-fd18-49b8-836c-e065f8779651%2Fx101sdf_processed.png&w=3840&q=75)
Transcribed Image Text:A city centre tour guide currently charges $27 for a full day's tour. The average number of
customers is 32. Market research suggests that for every $1 increase in tour price, the guide can
expect to lose 3 customers per tour.
(a) If the price increase is $x calculate the expected revenue.
(b) The guide needs to ensure that the expected revenue is at least $750. By solving a
quadratic inequality, find the range of prices that need to be charged.
(c) What price should be charged to maximise expected revenue?
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