A baseball team plays in a stadium that holds 52000 spectators. With the ticket price at $8 the average attendance has been 21000. When the price dropped to $5, the average attendance rose to 26000.
a) Find the demand function , where is the number of the spectators. (Assume that is linear.)
b) How should ticket prices be set to maximize revenue?
The revenue is maximized by charging $
per ticket.
You can earn partial credit on this problem.