Answer:
The correct option is C) $16.
Step-by-step explanation:
Consider the provided information.
Let R1 = $1000 revenue if price per seat is $10 and number of seats are 100.
Let R2 = $1360 revenue if price increase every time by $2 and 5 lesser number of seats sold that every time.
Hence, for R2,
x is the number of seat increase by $2.
n is the number of times 5 lesser seats are sold when each time the price is increased by $2.
The revenue increased by = $1360-$1000 = $360
Now, x = n since every time the price is increased, lesser number of seats are sold and this is attributed to the increased revenue.
The number of times the price is increased by $2 is 2x.
The number of times 5 lesser seats are sold is 5n.
2x × 5n = 360
10xn = 360
xn = 36
As mentioned above, x = n
Hence x² = 36
Therefore, x = 6
Neglect the negative value of x, as the price is increased,
Thus, $6 should be increased in $10.
The new price during is = 10+6 = $16.
Hence, the correct option is C) $16.
