Concepts of differetiation

Question

The price of an airplane ticket for a return trip is $600. The airline company attracts an average 500 daily bookings at this price . It has been observed that for every $50 decrease in price ,there is an additional 100 bookings. Form a linear equation that relates the number of bookings with the price of the tickets.

Answer 1

A formula for the revenue the airline company can expect is based on increasing our decreasing the price of an airline ticket by $50.  Let x represent the number of $50 increases (or decreases) in ticket prices, the the revenue R can be shown as:

R(x) = ($600 - $50x)(500 + 100x)