Profit Model) The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $500, the demand (D) is 700 passengers per day. When the price is reduced to $300, demand is 1,000 passengers per day. a. Plot these points on a coordinate system and develop a function that relates demand to price. b. Develop a mathematical model that will determine the total revenue as a function of price. c. Provide a recommendation to the airline company about the price that should be selected for the round trip between Chicago and Los Angeles such that their revenue is maximized. Describe how you have reached to this recommendation? (your solution may not be the best solution but should be a good solution).
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