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I am not certain how to calculate this. To ensure a big fan turnout for a homecoming game, the Howard University Bison basketball managers decided
I am not certain how to calculate this.
To ensure a big fan turnout for a homecoming game, the Howard University Bison basketball managers decided to offer half off the $20 regular price of reserved seats; sales jumped from 2150 to 3150 tickets.
a. Estimate the reserved seat demand curve (assume that it is linear).
b. Does the discounted price maximize revenue? If not, what should the tickets prices be set at in order to maximize revenue?
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