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7. Alaska Airlines flies a daily fight from Portland to Seattle. Currently they sell each ticket for 300 and an average 100 people take the
7. Alaska Airlines flies a daily fight from Portland to Seattle. Currently they sell each ticket for 300 and an average 100 people take the fight, so their revenue per fight in 30,000s. They are interested in seeing whether they can increases their revenue by changing the price of a tick Based on market research they discover that for every 15 increme in ticket price, one fewer person buy a ticket. Similarly, for every 18 decrease in ticket price, one more person will buy a ticket. What ticket price would maximize Alaska Airlines revenue? Hint: Denote the number of extra people flying on the ronte due to a price change by x, and the of a ticket by 300-z. Then explain why the revenue to be maximized is R()-(300)(100+x)
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