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 qq per night as a function of the cover charge pp, we can use the two given points from the problem. The data points are:

  • When the cover charge was $9, there were 165 guests: (p1,q1)=(9,165)(p_1, q_1) = (9, 165)
  • When the cover charge was $13, there were 105 guests: (p2,q2)=(13,105)(p_2, q_2) = (13, 105)

We assume the relationship between the number of guests and the price is linear, meaning the equation will take the form:

q=mp+bq = mp + b

Where:

  • mm is the slope of the line,
  • bb is the y-intercept.

Step 1: Find the slope mm

The slope of the line between two points (p1,q1)(p_1, q_1) and (p2,q2)(p_2, q_2) is calculated by:

m=q2q1p2p1m = \frac{q_2 - q_1}{p_2 - p_1}

Substitute the given values:

m=105165139=604=15m = \frac{105 - 165}{13 - 9} = \frac{-60}{4} = -15

Step 2: Find the y-intercept bb

Now that we know the slope is m=15m = -15, we use one of the points to solve for bb. Let's use (9,165)(9, 165):

165=15(9)+b165 = -15(9) + b

Simplifying:

165=135+b165 = -135 + b

b=165+135=300b = 165 + 135 = 300

Step 3: Write the demand equation

Now that we have m=15m = -15 and b=300b = 300, the demand equation is:

q=15p+300q = -15p + 300

This is the linear demand equation showing the number of guests qq per night as a function of the cover charge pp.

Would you like more details or have any questions? Here are some additional related questions to explore:

  1. What does the slope of the demand equation represent?
  2. What would happen to the number of guests if the cover charge increased to $15?
  3. How many guests can you expect if you set the cover charge to $7?
  4. What cover charge would attract exactly 150 guests?
  5. 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