SOLUTION: An airline has 2000 passengers each day paying $100 each, and knows that for each $10 increase in price they lose 50 passengers. What would be the equation that would determine th

Question 199: An airline has 2000 passengers each day paying $100 each, and knows that for each $10 increase in price they lose 50 passengers. What would be the equation that would determine their maximum revenue?
Answer by ichudov(507) (Show Source): You can put this solution on YOUR website!
Airline's revenue is: Number of passengers * ticket price.

Number of passengers also depends on ticket price:

Number of passengers = 2,000 - 50 * (ticket price - 100)/10

So, airline's revenue is:

(2,000 - 50 * (ticket price - 100)/10)*ticket price

Denote ticket price as x

Revenue = (2000-50*(x-100)/10)*x

When you simplify it, you get a quadratic expression, that you can plot on my site.

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