Assume you are the manager of a hotel that has 330 rooms. You are trying to determine the price that will maximize the revenue. You notice that as long as the hotel rate is $99 or lower, the hotel is fully booked. However if you raise the price above $99 you notice that for each $1 increase in price, two fewer rooms will be booked. For example if the hotel rate is $100, the number of rooms booked is 328, if the hotel rate is $101, the number of rooms booked is 326, if the hotel rate is $102, the number of rooms booked is 324, and so on. What price should you charge to maximize the revenue? Round your answer to the nearest integer. Your answer should be a whole number.
Assume you are the manager of a hotel that has 330 rooms. You are trying to determine the price that will maximize the revenue.
You notice that as long as the hotel rate is $99 or lower, the hotel is fully booked. However if you raise the price above $99 you notice that for each $1 increase in price, two fewer rooms will be booked.
For example if the hotel rate is $100, the number of rooms booked is 328, if the hotel rate is $101, the number of rooms booked is 326, if the hotel rate is $102, the number of rooms booked is 324, and so on.
What price should you charge to maximize the revenue?
Round your answer to the nearest integer. Your answer should be a whole number.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
