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Question from Donna, a parent:

A university is trying to determine what price to charge for football tickets. At a price of 6.oo/ticket it averages 70000 people per game. For every 1.oo increase in price, it loses 10000 people from the average attendance. Each person on average spends 1.5o on concessions. What ticket price should be charged in order to maximize revenue.
price = 6+x, x is the number of increases.
ticket sales = 70000- 10000x
concession revenue 1.5(70000 - 10000x)
I just do not know what to do with the concession part of this equation
(6+x) x (70000 - 10000x) I can understand but not the concession part please help. thx.

Donna,

The total revenue is composed of two parts, the revenue from the tickets and the revenue from the concessions. Thus the total revenue is

(6+x) × (70000 - 10000x) + 1.5(70000 - 10000x)

This is the expression you need to maximize.

Penny

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