A more sophisticated model

(more conducive to formulation of the

An easy-to-build model: objective function to use calculus):

Fare Passengers Revenue Fare Passengers Revenue

$2.00 1000 $2,000.00 $2.00 1000 $2,000.00
$2.25 950 $2,137.50 $2.25 950 $2,137.50
$2.50 900 $2,250.00 $2.50 900 $2,250.00
$2.75 850 $2,337.50 $2.75 850 $2,337.50
$3.00 800 $2,400.00 $3.00 800 $2,400.00
$3.25 750 $2,437.50 $3.25 750 $2,437.50
$3.50 700 $2,450.00 $3.50 700 $2,450.00
$3.75 650 $2,437.50 $3.75 650 $2,437.50
$4.00 600 $2,400.00 $4.00 600 $2,400.00
$4.25 550 $2,337.50 $4.25 550 $2,337.50
$4.50 500 $2,250.00 $4.50 500 $2,250.00
$4.75 450 $2,137.50 $4.75 450 $2,137.50
$5.00 400 $2,000.00 $5.00 400 $2,000.00

Revenue vs. Fare

$3,000

$2,500

$2,000
Revenue

$1,500

$1,000

$500

$0
$1.00 $2.00 $3.00 $4.00 $5.00 $6.00
Fare
An even easier to understand model:

Fare
Increase Fare Number of
(cents) (cents) Passengers Revenue
0 200 1000 $2,000.00
25 225 950 $2,137.50
50 250 900 $2,250.00
75 275 850 $2,337.50
100 300 800 $2,400.00
125 325 750 $2,437.50
150 350 700 $2,450.00
175 375 650 $2,437.50
200 400 600 $2,400.00
225 425 550 $2,337.50
250 450 500 $2,250.00
275 475 450 $2,137.50
300 500 400 $2,000.00