Question

A baseball team plays in a stadium that holds 57,000 spectators. With ticket prices at $10, the average attendance had been 38,000. When ticket prices were lowered to $8, the average attendance rose to 42,000.

Answer 1

Answer:

The equation of demand function is

$y=-\frac{1}{2000}x+29$

Step-by-step explanation:

We have two point demand function

(38000,10) and (42000,8)

Here $x_1$=38,000, $y_1$=10, $x_2$=42000, $y_2$=8

The slope of the demand function line is

$=\frac{y_2-y_1}{x_2-x_1}$

$=\frac{8-10}{42000-38000}$

$=\frac{-2}{4000}$

$=-\frac{1}{2000}$

The equation of demand function is

$y-y_1=m(x-x_1)$

$\Rightarrow (y-10)=-\frac{1}{2000}(x-38000)$

$\Rightarrow y-10=-\frac{1}{2000}x+\frac{38000}{2000}$

$\Rightarrow y=-\frac{1}{2000}x+19+10$

$\Rightarrow y=-\frac{1}{2000}x+29$