Anonymous From: - Posts: - Votes: - |
A movie theater has been charging $7.50 per person and selling 400 tickets on a typical weeknight. After surveying their customers, the theater estimates that for every 50 cents that they lower the price, the number of moviegoers will increase by 35 per night. Find the demand function and calculate the consumer surplus when the tickets are priced at $6.00. |

SmartSupa From: US Posts: 10 Votes: 20 |
Assuming the demand function is linear for every decrease in 50 cents the moviegoers increase by 35so our slope is -.5/35 the weekly increase is represented by x-400. so we have P(x)= 7.50-(.50/35)(x-400) P(x)= 7.50-(1/70)x+(40/7) P(x)=(185/14)+(1/70)x |

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