Friday
April 18, 2014

Homework Help: Calculus

Posted by Jake on Wednesday, March 7, 2012 at 7:47pm.

Could someone help me setup an equation for this equation?
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A city bus system carries 4000 passengers a day throughout a large city. The cost to ride the bus is $1.50/person. The owner realizes that 100 fewer people would ride the bus for each $0.25 increase in fare, and 100 more people would ride for each $0.25 decrease in fare.

If the capacity of the bus system is 5000 passengers, what should the bus system charge to produce the largest possible revenue?

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