2. Problem 14 in Chapter 1 posed the following situation: The demand for airline travel is quite...
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2. Problem 14 in Chapter 1 posed the following situation: The demand for airline travel is quite sensitive to price. Typically there is an inverse relationship between demand and price; when price decreases, demand increases, and vice versa. One major airline has found that when the price (p) for a round trip between Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced to $300, demand is 1,200 passengers per day. You were asked to develop an appropriate model. Use nonlinear optimization with Solver to find the optimal price to maximize revenue.
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Related Book For
Business Analytics Methods Models And Decisions
ISBN: 9780132950619
1st Edition
Authors: James R. Evans
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