Solve the Problem. -An Airline Charter Service Charges a Fare Per Person of Per

question 64

Multiple Choice

Solve the problem.
-An airline charter service charges a fare per person of $350 plus $20 for each unsold seat. The airplane holds 125 passengers. Let x represent the number of unsold seats and write an expression for the total revenue R for a
Charter flight.

• A) R(x) = (125 - x)(350 + 20x) or 43,750 + 2,150x - 20x2
• B) R(x) = 125(350 + 20x) or 43,750 + 2,500x
• C) R(x) = x(350 + 20x) or 350x + 20x2
• D) R(x) = (125 - x)(350 + 20x) or 43,750 + 2,500x - 20x2

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Definitions:

Disposable Income

Monetary provision for households to engage in saving and spending after the imposition of income taxes.

Induced Consumption

Refers to the portion of consumer spending that changes in response to changes in income levels, typically increasing as disposable income rises.

Dissaving

The action of spending more money than received as income, typically by drawing down savings or borrowing.

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.