Homework Statement [/b]
A hockey team plays in an arena with a seating capacity of 15,000 spectators. With the ticket prices set at $12, average attendance at a game has been 11,000. A market survey indicates that for each dollar the ticket price is lowered, average attendance will increase by 1,000. How should the owners of the team set the ticket price to maximize their revenue from tickets sales?
R(x)=xp(x) where p is called the demand function(or price function)[x units are sold and the price per unit is p(x)] or P(x) =R(x)-C(x) where x units are sold, C(x) is the cost function and P(x) is the profit.
The Attempt at a Solution
I am stuck on how to set up the problem. I used to R(x)=xp(x) formula and so far I have come up with R(x) = (12-x)(11,000+ 1000x) but I am not sure if that is correct. I was also thinking that this problem is a linear function and perhaps I can some how connect it to the point slope formula and the slope formula. Any help would be nice. Thanks in advance!