At a price of $4 per ticket, a musical theater group can fill every seat in the theater, which has a capacity of 1800. For every additional dollar charged, the number of people buying tickets decreases by 90. What ticket price maximizes revenue? Revenue is maximized when the price is

At a price of $4 per ticket, a musical theater group can fill every seat in the theater, which has a capacity of 1800. For every additional dollar charged, the number of people buying tickets decreases by 90. What ticket price maximizes revenue? Revenue is maximized when the price is

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 15P

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Question

At a price of
$4
per ticket, a musical theater group can fill every seat in the theater, which has a capacity of 1800. For every additional dollar charged, the number of people buying tickets decreases by 90.
What ticket price maximizes revenue?
Revenue is maximized when the price is

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