(adsbygoogle = window.adsbygoogle || []).push({}); [SOLVED] Optimization problem

1. The problem statement, all variables and given/known data

A baseball team plays in the stadium that holds 60000 spectators. With the ticket price at 8 the average attendence has been 24000. When the price dropped to 7, the average attendence rose to 30,000.

a) find the demand function p(x), where x is the number of spectators (assume p(x) is linear p(x)=

b) How should the ticket price be set to maximize revenue?

2. Relevant equations

3. The attempt at a solution

a) I figured out that the demand function was: 8-(1/6000)(x-24000)

b) I tried to use the revenue formula:; by taking the derivative of the demand function which is: 12-(12,000x/6000[tex]^{}2[/tex])

and then I set that equal to zero and tried to solve for X, which is: 36,000

So, now I don't know how to use the above information to calculate the price of the ticket. any suggestions?

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# Homework Help: Revenue Optimization problem

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