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that when the price (P) for a round trip between demand and price; when price decreases, demand in- Typically, there is an inverse relationship between creases and vice versa. One major airline has found price. 16. The demand for airline demand and price; when price decreases, demand: creases and vice versa. One major airline has foun that when the price (P) for a round trip betwe Chicago and Los Angeles is $600, the demand (D is 500 passengers per day. When the price is reduced to $400, demand is 1,200 passengers per day. a. Plot these points on a coordinate system and de- velop a linear model that relates demand to price. b. Develop a prescriptive model that will determine what price to charge to maximize the total revenue.

that when the price (P) for a round trip between demand and price; when price decreases, demand in- Typically, there is an inverse relationship between creases and vice versa. One major airline has found price. 16. The demand for airline demand and price; when price decreases, demand: creases and vice versa. One major airline has foun that when the price (P) for a round trip betwe Chicago and Los Angeles is $600, the demand (D is 500 passengers per day. When the price is reduced to $400, demand is 1,200 passengers per day. a. Plot these points on a coordinate system and de- velop a linear model that relates demand to price. b. Develop a prescriptive model that will determine what price to charge to maximize the total revenue.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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16. The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand in- Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced that when the price (P) for a round trip between odel. Typically, there is an inverse relationship betwe demand and price; when price decreases, demand creases and vice versa. One major airline has fou that when the price (P) for a round trip between Chicago and Los Angeles is $600, the demand (D the ice, the cal of to $400, demand is 1,200 passengers per day. a. Plot these points on a coordinate system and de- velop a linear model that relates demand to price. el e b. Develop a prescriptive model that will determine what price to charge to maximize the total revenue. 6. c. By trial and error, can you find the optimal solu- tion that maximizes total revenue?
Transcribed Image Text:16. The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand in- Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced that when the price (P) for a round trip between odel. Typically, there is an inverse relationship betwe demand and price; when price decreases, demand creases and vice versa. One major airline has fou that when the price (P) for a round trip between Chicago and Los Angeles is $600, the demand (D the ice, the cal of to $400, demand is 1,200 passengers per day. a. Plot these points on a coordinate system and de- velop a linear model that relates demand to price. el e b. Develop a prescriptive model that will determine what price to charge to maximize the total revenue. 6. c. By trial and error, can you find the optimal solu- tion that maximizes total revenue?
Problem 16 Instructions: Complete the green cells. Part a Plot the points on a scatter plot. Add a linear trendline to the chart and show the equation. Price (P) Demand (D) $ 600 500 400 1200 Part b Develop a prescriptive model that will determine what price to charge to maximize the total revenue. Write the model as text in terms of P and D. Start the green |cell below with a single quote ('). Revenue = Enter the actual equation from (b) in the green cell below. Reference the peach price cell in your formula. Then, Part c through trial and error, find the price that maximizes revenue. Price Re %24
Transcribed Image Text:Problem 16 Instructions: Complete the green cells. Part a Plot the points on a scatter plot. Add a linear trendline to the chart and show the equation. Price (P) Demand (D) $ 600 500 400 1200 Part b Develop a prescriptive model that will determine what price to charge to maximize the total revenue. Write the model as text in terms of P and D. Start the green |cell below with a single quote ('). Revenue = Enter the actual equation from (b) in the green cell below. Reference the peach price cell in your formula. Then, Part c through trial and error, find the price that maximizes revenue. Price Re %24
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