Question

Question 1: The park had initially planned to charge $8 for admission and expected to have 2400 visitors a day.

a) How much revenue would the park have for one day at the current price?

b) They have been provided with some market research that shows for every $0.50 the admission price is raised, the park will have 80 fewer visitors. How much would the park revenue be if park raised their admission price by $1?

c) After a few calculations, the park will make more money if they raise the price of admission. However, they also understand that there must be a limit to how much the park can charge. Determine the equation of the quadratic relation based on the information provided.

i. Write this equation in standard form. Show all of the steps leading to the final answer.

ii. What price should the park charge to maximize their revenue?

iii. What price range would produce a revenue over $20 000?

Answer 1