Math Problem Statement
You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the cover charge (entrance fee). One week you charged $9 per guest and averaged 165 guests per night. The next week you charged $13 per guest and averaged 105 guests per night. (a) Find a linear demand equation showing the number of guests q per night as a function of the cover charge p.
Solution
To find a linear demand equation for the number of guests per night as a function of the cover charge , we can use the two given points from the problem. The data points are:
- When the cover charge was $9, there were 165 guests:
- When the cover charge was $13, there were 105 guests:
We assume the relationship between the number of guests and the price is linear, meaning the equation will take the form:
Where:
- is the slope of the line,
- is the y-intercept.
Step 1: Find the slope
The slope of the line between two points and is calculated by:
Substitute the given values:
Step 2: Find the y-intercept
Now that we know the slope is , we use one of the points to solve for . Let's use :
Simplifying:
Step 3: Write the demand equation
Now that we have and , the demand equation is:
This is the linear demand equation showing the number of guests per night as a function of the cover charge .
Would you like more details or have any questions? Here are some additional related questions to explore:
- What does the slope of the demand equation represent?
- What would happen to the number of guests if the cover charge increased to $15?
- How many guests can you expect if you set the cover charge to $7?
- What cover charge would attract exactly 150 guests?
- How would the equation change if you lowered the cover charge to attract more guests?
Tip: When interpreting a linear demand equation, the slope tells you how much the demand (number of guests) decreases per dollar increase in the cover charge.
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Math Problem Analysis
Mathematical Concepts
Algebra
Linear Equations
Slope-Intercept Form
Formulas
Slope formula: m = (y2 - y1) / (x2 - x1)
Linear equation: y = mx + b
Theorems
Slope-intercept form of a linear equation
Suitable Grade Level
Grades 9-12
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