Question

A soccer stadium holds 62,000 spectators. With a ticket price of $14, the average attendance has been 26,000. When the price dropped to $12, the average attendance rose to 31,000. Assuming that attendance is linearly related to ticket price, what ticket price would maximize revenue?

Answer 1

Answer:

Ticket price that maximize revenue  is $12

Step-by-step explanation:

The number of spectators per stadium is 62,000

When the price of a ticket is $14, the attendance is 26,000 and the  revenue will be; $14* 26,000 = $364,000

When the price of a ticket is $12, the attendance is 31,000 and the revenue will be; $31,000*$12 =$372,000

Maximum revenue is attained through ticket 2, $12