SOLUTION: In most businesses, increasing prices of products can negatively impact the number of customers. A bus company in a small town has an average number of riders of 800 per day. Th
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Question 85209: In most businesses, increasing prices of products can negatively impact the number of customers. A bus company in a small town has an average number of riders of 800 per day. The bus company charges $2.25 for a ride. They conducted a survey of their customers and found that they will lose approximately 40 customers per day for each $.25 increase in fare.
Let the number of riders be a function of the fare charged. Graph the function, identify the graph of the function (line, parabola, hyperbola, or exponential), and find the slope of the graph. Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let F = amount taken in per day in fares
Let n = number of $.25 fare increases
This equation just states
Fares taken in = (number of riders)(fare far each rider)
But the problem wants F as a function of the number of riders, so
Let r = riders per day, then
By my calculations, when F is a maximum, n = 5.5, so the fare increase
should be between $1.00 and $1.25. Then F = $2102.50 and r = 580
