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The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced to $300, demand is 1,200 passengers per day. a. Plot these points on a coordinate system and develop a linear model that relates demand to price. b. Develop a prescriptive model that will determine what price to charge in order to maximize the total revenue. c. By trial and error, can you find the optimal solution that maximizes total revenue?
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Write a 400 word count dicussion on this topic. Please answer the two questions below thoroughly. Any sources need to be properly cited in APA form all sources must be scholarly and have a reference page below
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consider the following data.inventory itemaverage demand annualsigma std. dev. of demand during lead timeitem unit
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