Suppose That 20,000 Fans Will Go to a Ball Game

question 30

Multiple Choice

Suppose that 20,000 fans will go to a ball game when the price of a ticket is $5.00, and that 500 fewer fans will go for each $1.00 increase in ticket price. By how much should ticket prices be increased (or decreased) in order to maximize revenue?

• A) increase price by $17.50
• B) increase price by $45.00
• C) increase price by $22.50
• D) decrease price by $1.00

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Definitions:

Osmosis

Osmosis is the spontaneous passage or diffusion of water or other solvents through a semipermeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Concentrated

Having a large amount of a particular substance in a specific area or volume, reducing the proportion of other substances or components.

Pepsin

An enzyme in the stomach that breaks down proteins into smaller peptides, functioning optimally in an acidic environment.

Protein Digestion

The process by which proteins are broken down into their component amino acids by enzymes in the digestive system, starting in the stomach and continuing in the small intestine.