The Mustangs Ultimate Frisbee team is selling tickets to an end-of-year BBQ. They sell 500 tickets for  $2.00 each. They are planning to increase the price. A survey indicates that for every $0.20 price increase, there will be a drop of 20 tickets sold by the team. a) What is their maximum revenue that they can make? b) What should their selling price be in order to maximize their revenue? c) How many tickets will be sold at this point

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The Mustangs Ultimate Frisbee team is selling tickets to an end-of-year BBQ. They sell 500 tickets for  $2.00 each. They are planning to increase the price. A survey indicates that for every $0.20 price increase, there will be a drop of 20 tickets sold by the team.

a) What is their maximum revenue that they can make?

b) What should their selling price be in order to maximize their revenue?

c) How many tickets will be sold at this point

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