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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,
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 $30,000 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-x. Then explain why the revenue to be maximized is R(x)=(300)(100+x)
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