Elementary and Intermediate Algebra: Concepts & Applications (6th Edition)

Published by Pearson
ISBN 10: 0-32184-874-8
ISBN 13: 978-0-32184-874-1

Chapter 11 - Quadratic Functions and Equations - 11.8 Problem Solving and Quadratic Functions - 11.8 Exercise Set - Page 757: 55

Answer

Owner should charge $\$15$ to maximize his money to $\$900$.

Work Step by Step

In order to increase the price by $0.25$, the price of the ticket will be $10+0.25x$ and the price of attendance would decrease by $1$ (that is $80-x$). Therefore, the money made by the owner is, $\begin{align} & \text{Money = attendance }\times \text{ price} \\ & \text{=}\left( 80-x \right)\left( 10+0.25x \right) \\ & =800+20x-10x-0.25{{x}^{2}} \\ & =-0.25{{x}^{2}}+10x+800 \end{align}$ Compare it with the standard equation of the parabola $y=a{{x}^{2}}+bx+c$. $a=-0.25,b=10,c=800$ Now, the vertex of the parabola is, $\begin{align} & x=\frac{-b}{2a} \\ & =\frac{-10}{2\left( -0.25 \right)} \\ & =\frac{-10}{-0.5} \\ & =20 \end{align}$ So, when $x=20$, the money made by the owner is a maximum: Therefore, the money made by the owner is: $\begin{align} & -0.25{{x}^{2}}+10x+800=-0.25{{\left( 20 \right)}^{2}}+10\left( 20 \right)+800 \\ & =-100+200+800 \\ & =900 \end{align}$ And the price would be: $\begin{align} & \text{Price}=10+0.25\left( 20 \right) \\ & =10+5 \\ & =\$15\end{align}$ Therefore, the owner should charge $\$15$ to maximize his money to $\$900$.
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