$925 a night looks better!
The Hotel Summerfield has 500 rooms. Currently the hotel is filled . The daily rental is $ 850 per room.
For every $ 16 increase in rent the demand for rooms decreases by 8 rooms.
Let x = the number of $ 16 increases that can be made.
What should x be so as to maximize the revenue of the hotel ? _______________
What is the rent per room when the revenue is maximized? $_______________
What is the maximum revenue? $_________________
If each room cost $850 (I'm not going to be staying there!) to start with, and there are x "$16 increases", what would the price per room be?
If they initially rented all 500 rooms and the number of rooms decreased by 8 for each $16 increase, how many rooms will be rented with x "$16 increases"? The total revenue will be the number or rooms rented times the rent for each room.
Once you have that "revenue function", do you know how to maximize a function?
What should x be so as to maximize the revenue of the hotel ? _______________
What is the rent per room when the revenue is maximized? $_______________
What is the maximum revenue? $_________________