question archive An airline notes that if the price of an 8 am round trip ticket from Boston to New York is set at $250, they can sell 1000 tickets
An airline notes that if the price of an 8 am round trip ticket from Boston to New York is set at $250, they can sell 1000 tickets
Subject:MathPrice: Bought3
An airline notes that if the price of an 8 am round trip ticket from Boston to New York is set at $250, they can sell 1000 tickets. For every $50 increase in price, they can sell 100 fewer tickets. For every $50 decrease in price, they can sell 100 more, up to their capacity of 2000 seats. a. Find the demand function. b. If they charge $250, what is the total consumer surplus? c. Find the price and quantity for which revenue is maximized.
