An airline company determines the price of a seat on a particular route between city A and city B to be p = 200 + 0.02n, where p is the airfare price in euro and n is the number of airplane seats sold per day. The travel demand for this route by air has been found to be n = 4700 – 20p a)Determine the equilibrium price charged and the number of seats sold per day, and the resulting revenues of the company.
An airline company determines the price of a seat on a particular route between city A and city B to be p = 200 + 0.02n, where p is the airfare price in euro and n is the number of airplane seats sold per day. The travel demand for this route by air has been found to be n = 4700 – 20p a)Determine the equilibrium price charged and the number of seats sold per day, and the resulting revenues of the company.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An airline company determines the
p = 200 + 0.02n,
where p is the airfare price in euro and n is the number of airplane seats sold per day.
The travel demand for this route by air has been found to be
n = 4700 – 20p
a)Determine the
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