- #1
rice1am
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Homework Statement
An average of 20 000 people visit the Lakeside Amusement Park each day in the summer. The admission fee is $25.00. Consultants predict that, for each $1.00 increase in the admission fee, the park will lose an average of 750 customers a day. Determine the function that represents the projected daily revenue if the admission fee is increased AND estimate the ticket price that will maximize function.
Homework Equations
I figured out the equation of the revenue, which I'm sure is correct. It is:
D(n) = (25.00 + 1.00n)(20 000-750n)
let n represent the number of times the price increases.
The Attempt at a Solution
However, I did not understand the second question, do you have to lower the ticket price to maximize revenue? Also, can anyone explain an fast way to determine a maximum revenue, because my method involves choosing random numbers and plopping them into the equation until I find a good value?
Thanks everyone! :)