SOLUTION: An airline transports about 800 people between Chicago and New York. A round-trip ticket is $300. It is estimated that with each $5 increase in ticket prices, 10 fewer passengers w

Question 804792: An airline transports about 800 people between Chicago and New York. A round-trip ticket is $300. It is estimated that with each $5 increase in ticket prices, 10 fewer passengers will fly the airline. What ticket price would maximize the income for the airline.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An airline transports about 800 people between Chicago and New York. A round-trip ticket is $300. It is estimated that with each $5 increase in ticket prices, 10 fewer passengers will fly the airline. What ticket price would maximize the income for the airline.
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Revenue = price*#of passengers
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R(x) = (300+5x)(800-10x)
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R(x) = -50x^2 +1000x + 240000
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Maximum revenue occurs when x = -b/(2a) = -1000/(-100)= 10
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Price = 300+10*5 = $350
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Cheers,
Stan H.
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