A local sports bar routinely promotes sporting events, such as the Super Bowl, t

Question

A local sports bar routinely promotes sporting events, such as the Super Bowl, the NCAA Sweet Sixteen tournament, the BCS games, the Masters, NBA and NFL playoffs, NHL, baseball, NASCAR, and key curling bonspiels. By keeping records, the owner has determined that when the cover price is $16 the average number of patrons is 224. For every $1 change in cover charge, the number of patrons changes by 9. Assuming a linear demand curve, calculate the maximum willingness to buy for sporting events at this sports bar.

Explanation / Answer

The maximum willingness to buy for sporting events at this sports bar is $16 as the average is 224 patrons and per dollars patrons are 14. From this point if the cover price is changed by $1 the patrons change is 9 in numbers which is less than what is at $16.

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