An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400 ickets × $400/ticket = $160,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on market research they discover that for every $2 increase in ticket price, one fewer person will buy a ticket. Similarly for every $2 decrease in ticket price, one more person will buy a ticket.
An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400 ickets × $400/ticket = $160,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on market research they discover that for every $2 increase in ticket price, one fewer person will buy a ticket. Similarly for every $2 decrease in ticket price, one more person will buy a ticket.
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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5-What ticket price would maximize the airline's revenue?
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