Select the correct answer.

A theater company is considering raising the price of its tickets. It currently charges [tex]\$8.50[/tex] for each ticket and sells an average of 200 tickets for each show. The company estimates that for each [tex]\$0.25[/tex] increase in the price of the ticket, the average ticket sales will go down by 5 people.

Which equation could the company solve to find the number of price increases it could make, [tex]x[/tex], and still have a revenue of [tex]\$1,700[/tex]?

A. [tex]-1.25x^2 - 7.5x = 0[/tex]
B. [tex]-1.25x^2 - 7.5x - 1,700 = 0[/tex]
C. [tex]-1.25x^2 + 7.5x - 1,700 = 0[/tex]
D. [tex]-1.25x^2 + 7.5x = 0[/tex]



Answer :

To find the correct equation, let's first set up the relationship between the ticket price, the number of tickets sold, and the revenue.

1. Let [tex]\( x \)[/tex] be the number of [tex]$\$[/tex] 0.25[tex]$ increases. 2. The new ticket price after \( x \) increases is: \[ 8.50 + 0.25x \] 3. The new number of tickets sold after \( x \) increases is: \[ 200 - 5x \] 4. The revenue \( R \) can be represented as: \[ R = \text{(new ticket price)} \times \text{(new number of tickets sold)} \] \[ R = (8.50 + 0.25x) \times (200 - 5x) \] 5. We are told the target revenue is \$[/tex]1,700, so we can set up the equation:
[tex]\[ (8.50 + 0.25x)(200 - 5x) = 1700 \][/tex]

Let's expand and simplify this equation step by step:

6. Distribute the terms inside the parentheses:
[tex]\[ 8.50 \cdot 200 + 8.50 \cdot (-5x) + 0.25x \cdot 200 + 0.25x \cdot (-5x) = 1700 \][/tex]
[tex]\[ 1700 - 42.5x + 50x - 1.25x^2 = 1700 \][/tex]

7. Combine the like terms:
[tex]\[ 1700 + (50x - 42.5x) - 1.25x^2 = 1700 \][/tex]
[tex]\[ 1700 + 7.5x - 1.25x^2 = 1700 \][/tex]

8. Subtract 1700 from both sides to simplify:
[tex]\[ 0 + 7.5x - 1.25x^2 = 0 \][/tex]
[tex]\[ -1.25x^2 + 7.5x = 0 \][/tex]

So, the equation that the company needs to solve to find the number of price increases [tex]\( x \)[/tex] is:
[tex]\[ -1.25x^2 + 7.5x = 0 \][/tex]

Thus, the correct answer is:
[tex]\[ \boxed{D} \][/tex]