Revenue from Monorail Service, Las Vegas In 2005 the Las Vegas monorail charged $3 per ride and had an average ridership of abou
1 answer:
Answer:
A)The required linear demand equation ( q ) = -4500p + 41500
B) $4.61
$95680.55
C) No it would not have been possible by charging a suitable price
Step-by-step explanation:
<u>A) find the linear demand equation</u>
given two points ; ( 3, 28000 ) and ( 5, 19000 )
slope ( m ) = ( y2 - y1 ) / ( x2 - x1 )
= ( 19000 - 28000 ) / ( 5 - 3 ) = -4500
slope intercept is represented as ; y = mx + b
where y( 28000) = -4500(3) + b
hence b = 41500
hence ; y = -4500x + 41500
The required linear demand equation ( q ) = -4500p + 41500 ----- ( 1 )
p = price per ride
<u>B ) Determine the price the company should charge to maximize revenue from ridership and corresponding daily revenue</u>
Total revenue ( R ) = qp
= p ( -4500p + 41500 )
hence R = -4500p^2 + 41500p ------ ( 2 )
To determine the price that should maximize revenue from ridership we will equate R = -4500p^2 + 41500p to a quadratic equation R(p) = ap^2 + bp + c
where a = -4500 , b = 41500 , c = 0
hence p = =
= 4.61
$4.61 is the price the company should charge to maximize revenue from ridership
corresponding daily revenue = R = -4500p^2 + 41500 p
where p = $4.61
hence R = -4500(4.61 )^2 + 41500(4.61) = $95680.55
C) No it would not have been possible by charging a suitable price
You might be interested in
Answer:
3/4
Step-by-step explanation:
You can do this two different ways. Both include picking two points where the line crosses a corner. I'm using (0,-1) and (4,2). Now here you can either use
Slope=
or
If you use the first one start at point (0,-1) and go to point (4,2) and count how many it goes up (rise) and then put that over how many it goes to the right (run).
If you use the second one then plug in the numbers.
y2=second y point
y1=first y point
x2=second x point
x1=first x point
Now just solve.