SOLUTION: In a local arena, there are 1000 premium seats, costing $50 each. Due to an increase in operating expenses, the arena must increase the price of a seat. They know that for every $3

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Question 357804: In a local arena, there are 1000 premium seats, costing $50 each. Due to an increase in operating expenses, the arena must increase the price of a seat. They know that for every $3.75 increase in price, they will lose 4 patrons. Find the new price they should charge to make the most money and lose the fewest patrons.
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Let x = # of unit increase in the price.
Then the revenue function is R%28x%29+=+%2850+%2B+3.75x%29%281000-4x%29.
the vertex happens at x = 355/3, or 118.333...
Since positive integral values are acceptable only, either x = 118 or x = 119. Direct substitution into the revenue function, and comparison of the resulting values results in x = 118 giving the higher revenue.