Question

A baseball team plays in a stadium that holds 52000 spectators. With the ticket price at $12 the average attendance has been 19000. When the price dropped to $9, the average attendance rose to 26000. Assume that attendance is linearly related to ticket price.


What ticket price would maximize revenue?

Answer 1

19000 =12k +c 26000= 9k +c subtract the first from the second 7000= -3k --> k = -7000/3

sub that into one of the other eqns say the first , so c= 19000-12k = 47000