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28 October, 01:47

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?

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  1. 28 October, 05:10
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    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
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