Teacher2Teacher |
Q&A #323 |
From: Mary Lou
(for Teacher2Teacher Service)
Date: Mar 16, 1998 at 17:21:33
Subject: Re: Factoring and quadratics
Luis, Quadratics can be applied to marketing. Suppose you are trying to decide how much you should charge for tickets to a concert. If the price is too low, every ticket will be sold. If the price is way out of line, then not every ticket will be sold. The problem is to determine at what price all tickets will be sold and what will be the maximum income generated. The number of tickets is a constant. Imagine doing some market research in which you find out that at $N only K tickets might be sold. For every $5 increase in ticket price it can be expected that 100 fewer tickets will be sold. Therefore, the revenue = the number of tickets sold multiplied by the cost per ticket. This is (K - 100x)($N + $5x). This gives you a quadratic equation. In factored form you can find the x-intercepts, and the average of these is the value of x that gives your the maximum revenue. I think that students aged 17-21 will relate to this type of problem. Ask them for other similar situations. Perhaps they can find the $N amount for you. Mary Lou
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