A travel agent sells 30 tickets at 4,500.00 each. If she decreases the price 250.00 the number of tickets sold increase by 3. What price should the tickets be sold to maximize gross income?
in Algebra 1 Answers by

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Answer

If 3x is the increase in quantity corresponding to a decrease in price of 250x, then we can see that the profit, P=(30+3x)(4500-250x)=(3(10+x))(250(18-x))=

750(10+x)(18-x)=750(180+8x-x²).

We need the maximum value of 180+8x-x². We can use calculus to find the maximum value, but we can also work it out by writing this as -(-180-8x+x²) = -(x²-8x+16-16-180) = 196-(x-4)². This has a maximum value of 196 when x=4. (The maximum profit corresponding to x=4 is 750×196=147000.)

Therefore the selling price is 4500-1000=3500.00 (and the number of tickets sold is 30+12=42).

by Top Rated User (1.1m points)

Related questions

1 answer
1 answer
asked Nov 30, 2013 in Algebra 1 Answers by tucoma45 Level 1 User (140 points) | 633 views
1 answer
Welcome to MathHomeworkAnswers.org, where students, teachers and math enthusiasts can ask and answer any math question. Get help and answers to any math problem including algebra, trigonometry, geometry, calculus, trigonometry, fractions, solving expression, simplifying expressions and more. Get answers to math questions. Help is always 100% free!
87,550 questions
99,625 answers
2,417 comments
439,064 users