Question
An airline flying to a Midwest destination can sell 20 coach-class tickets per day at a price of $250 andtenbusiness-class tickets per day at a
An airline flying to a Midwest destination can sell 20 coach-class tickets per day at a price of $250 andtenbusiness-class tickets per day at a price of $750. It finds that for each $10 decrease in the price of the coach ticket, it will sell four more per day, and for each $50 decrease in the business-class price, it will sell two more per day. What prices should the airline charge for the coach and business-class tickets to maximize revenue? [Hint: Letxbe the number of $10 price decreases for coach tickets andybe the number of $50 price decreases for business-class tickets, and use the methods inthis exampleandthis examplefor each type of car.]
price of coach ticket: ( )$
price of business class ticket: ( )$
How many of each type will be sold at these prices?
quantity of coach tickets sold ( ) per day
price of business class tickets sold( ) per day
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started