Investigation 4.2.1. Revenue from Theater Tickets.
The local theater group sold tickets to its opening-night performance for $5 and drew an audience of 100 people. The next night they reduced the ticket price by $0.25 and 10 more people attended; that is, 110 people bought tickets at $4.75 apiece. In fact, for each $0.25 reduction in ticket price, 10 additional tickets can be sold.
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Fill in the table
No. of price reductions Price of ticket No. of tickets sold Total revenue -
On the grid below, plot Total revenue on the vertical axis versus Number of price reductions on the horizontal axis. Use the data from your table.
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Let
represent the number of price reductions, as in the first column of your table. Write algebraic expressions in terms of forThe price of a ticket after price reductions:The number of tickets sold at that price:The total revenue from ticket sales: - Enter your expressions for the price of a ticket, the number of tickets sold, and the total revenue into the calculator as
and Use the Table feature to verify that your algebraic expressions agree with your table from part (1). - Use your calculator to graph your expression for total revenue in terms of
Use your table to choose appropriate window settings that show the high point of the graph and both -intercepts. - What is the maximum revenue possible from ticket sales? What price should the theater group charge for a ticket to generate that revenue? How many tickets will the group sell at that price?