An airline will fill 100 seats of its aircraft at a fare of 200 dollars. For every 5 dollar increase in the fare, the plane loses two passengers. For every decrease of $5, the company gains two passengers. What price maximizes revenue?I'm a bit lost as to what my equations should be. The total revenue, if all seats are filled can be 20000. So for every 5 dollar increase the total revenue becomes: 20000−400x (400x = 2 people time the price of each ticket times the number of 5 dollar increases). I don't know how to model the other situation of a 5 dollar decrease.

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An airline will fill 100 seats of its aircraft at a fare of 200 dollars. For every 5 dollar increase in the fare, the plane loses two passengers. For every decrease of $5, the company gains two passengers. What price maximizes revenue?I&#039;m a bit lost as to what my equations should be. The total revenue, if all seats are filled can be 20000. So for every 5 dollar increase the total revenue becomes: 20000−400x (400x = 2 people time the price of each ticket times the number of 5 dollar increases). I don&#039;t know how to model the other situation of a 5 dollar decrease.

bamenyab4mxn · Accepted Answer

The first part of solving such a problem is to make some definitions. Without definitions for a word-problem one doesn&#039;t get anywhere.1. The amount of dollars a ticket costs is   x2. The number of passengers will be a function, let us call it   f  (  x  )3. The total revenue will be a function, let us call it   g  (  x  )Now you can start tying to figure out the relations between these. And once you have found   f  (  x  ) and   g  (  x  ) that&#039;s when you can use your knowledge of the derivative and how you can use it.

An airline will fill 100 seats of its aircraft at a fare of 200 dollars. For every 5 dollar increase

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