Last year, 350 people come to see a spring concert at REL. The cost per ticket was $5.00. The orchestra committee wants to incre
ase ticket prices but it is estimated that for each increase in $0.25, 10 fewer people will attend the concert. What should the committee set the ticket price to maximize ticket sales.
Let 0.25x is the price increase. Therefore, the number of attendees will be 350-10x and the revenue R=(350-10x)*(5+0.25x)=1750+37.5x-2.5x^2. This parabola has maximum at x=10, meaning the price=7.5
