1 MAT2103 (C2) Lines, Parabolas and Systems
Chapter 2 FUNCTIONS 11
A mathematical model is a mathematical description (often by means of a function or an
equation) of a real-world phenomenon such as the size of a population, the demand for a
product, the speed of a falling object, the concentration of a product in a chemical
reaction, the life expectancy of a person at birth, or the cost of emission reductions. The
purpose of the model is to understand the phenomenon and perhaps to make predictions
about future behavior.
2.1. Functional models
Note: One of the most useful equation in business is the revenue equation , which is obtained by
price * quantity , which is written as r= pq , where r is the revenue, p is the price and q is the
quantity . If C(x) is the total cost of producing x units, then the profit derived from their sale at the unit
price p is given by the function P( x )=R( x )−C( x )=xD( x )−C ( x )
2.1,1. Demand and Supply Curve
If the price per unit of the product is given by p and the corresponding quantity (in units) is given by q.
The higher the price, the smaller is the quantity demand.
The higher the price per unit, the larger is the quantity that producers are willing to supply, as the price
falls, so will the quantity supplied.
2.1,2 Equilibrium
When the demand and supply curves of q product are represented on the same coordinate
plane, the intersection point of the curves is called the point of equilibrium. The q
coordinate for this point is equilibrium quantity and the p coordinate is equilibrium price
Example
1
p=− q+12
Suppose that, for product z, the demand equation is
180 and the supply
1
p=− q+8
equation is
300 where
q, p≥0 Find the equilibrium points. ( 1800, 2)
2.1.3 BREAK-EVEN POINT
In manufacturing situations, it is usually of interest to know how many items must be
produced and sold in order to break-even, i.e. to find the number of items when the income
gained exactly equals the cost of manufacturing them
This process is known as break-even analysis and may be performed either by solving a
pair of simultaneously equations or with the aid of graph
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2 MAT2103 (C2) Lines, Parabolas and Systems
Example-1
A firm manufactures an inexpensive type of scientific calculator. There is a weekly fixed
cost of $500 for producing the calculators and a variable cost of $8 per calculator. The firm
receives an income of $12 for each calculator that it sells
Find
(a) the total cost of manufacturing 80 calculators in a week,
(b) the income from selling 80 calculators,
(c) the profit or loss if the firm manufactures and sell 80 calculators in a particular week.
(d) the point at which total cost is equal to income.
That is, find the weekly sales that represent the break-even point. Interpret the value of this
point.
Example 2
Find the market equilibrium point for the following supply and demand function.
Demand p=−3 q +26 Supply p=4q−9
2.1.4 System of Linear Equations
It is a system with either,
(i) Two linear Equations with 2 variables,
ax + by = m (1)
cx + dy = n (2)
ax + by + cz = m (1)
dx + ey + fz = n (2)
gx + hy + kz = p (2)
Methods:
(i) Elimination Method,
(ii) Substitution Method.
(a) Elimination Method
e.g. (1) 3x y = 12 (1)
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3 MAT2103 (C2) Lines, Parabolas and Systems
2x + y = 13 (2) {x, y} = {5, 3}
e.g. (2) 3x + 7y = 17 (1)
3x 6y = 4 (2) {x, y} = {10/3, 1}
e.g. (3) 13x 6y = 20 (1)
7x + 4y = 18 (2) Answer: {x, y} = {2, 1}
2x y
e.g. (4) 3 9 = 6 (1)
y
x 3 = 6 (2) Answer: {x, y} = {12, 18}
(b) Substitution Method
e.g. (1) 3x y = 12 (1)
2x + y = 13 (2) Answer: {x, y} = {5, 3}
(i) Three linear Equations with 3 variables,
ax + by + cz = m (1)
dx + ey + fz = n (2)
gx + hy + kz = p (2)
2 x − y+2 z=3
x− y +z=2
(i) x+ y+2 z=3 (-2, - 1, 3)
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4 MAT2103 (C2) Lines, Parabolas and Systems
x+2 y +z=2
x− y +z=2
(ii ) x+ y+ 3 z =4 (1, 0, 1)
Solve the systems algebraically.
1. x+4 y=3 2 4 x+2 y=9
.
3 x−2 y=−5 5 y−4 x=5
3. 2x+3 y=1 4 2 x− y=1
.
x−2 y=0 −x+2 y =7
5. u+v=5 6 2 p+q=16
.
u−v=7 3 p+3q=33
7. x y z
{ x + 2 y + z = 8 ¿ { 2 x + y − z =1 ¿ ¿
+ + =11
2 3 2
x z
+ y− =6
3 6
x y
+ + z=16
2 6
8.
A total of how many $10.50 seats were sold?
# Example :
1. A total of 78 seats for a concert are sold, producing a total revenue of $483. If seats
cost either $2.50 or $10.50, how many $2.50 seats and how many $10.50 seats were
sold? (42,36)
2. The school that Stefan goes to is selling tickets to a choral performance. On the first
day of ticket sales the school sold 3 senior citizen tickets and 1 child ticket for a total
of $38. The school took in $52 on the second day by selling 3 senior citizen tickets
and 2 child tickets. Find the price of a senior citizen ticket and the price of a child
ticket. ( 8, 14)
3. Phoebe has some 32-cent stamps, some 29-cent stamps, and some 3-cent stamps.
The number of 29-cent stamps is 10 less than the number of 32-cent stamps, while
the number of 3-cent stamps is 5 less than the number of 29-cent stamps. The total
value of the stamps is $9.45. How many of each stamp does she have? ( 20,10,5)
4. Roy, Sally, and Jeff drive a total of 50 mi to work each day. Sally drives twice as far
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5 MAT2103 (C2) Lines, Parabolas and Systems
as Roy, and Jeff drives 10 mi farther than Sally. Use a system of three equations in
three unknowns to find how far each person drives each day ( Roy 8 Sally 16 Jeff
26 )
5. Suppose Lindsay’s mom invests $10000, part at 3%, and the rest at 2.5%, in interest
bearing accounts. The totally yearly investment income (interest) is $283. How much
did Lindsay’s mom invest at each rate? (6600, 3400)
2.5 Applications of Systems of Equations
Tutorials
1. Ten books are sold at RM80. Twenty books are sold at RM60. Find the demand
equation.
2. At the price of RM25 per shirt, no shirts are being sold. If the price offered at
RM40, 20 shirts are sold. Find the supply equation.
3. The fixed cost of a product is RM 5000 and the variable cost is RM7.50. For
each unit, the qoods are sold at RM10. Find
a) the cost function,
b) the revenue function,
c) the profit function,
d) the break-even point.
4. Find the equilibrium price and quantity for the following market:
Qs =−20+3 P 13 P−Qs =27 Qs +32−7 P=0
a)
Qd =220−5 P b)
Qd +4 P−24=0 c)
Qd −128+9 P=0
[Link] the following supply and demand functions, S(x) and D(x) , find the value of x, ( level of
production ) for which equilibrium occurs and the equilibrium price
(i) S ( x )=4 x +200 D( x )=−3 x +480 (40, 360)
2
(ii) S ( x )=2 x +7 . 43 D( x)=−0.21 x −0.84 x+50 ( 9,25.43)
2
p
6. when electric blenders are sold for p dollars a piece , manufacturers will supply 10
blenders to local retailers while the local demand will be 60 - p blenders.
a. At what market price will the manufacturer’s supply of electric blenders be equal
to the consumers’ demand for the blenders? ( $ 20)
b. How many blenders will be sold at this price? ( 40)
7. A furniture manufacturer can sell dining room tables for $ 70 a piece. The manufacturer’s
total cost consists of a fixed overhead of $ 8000 plus production costs of $ 30 per table.
a. How many tables must the manufacturer sell to break even? (200)
b. How many tables must the manufacturer sell to make a profit of $ 6000?
(350)
c. What will the manufacturer’s profit or loss if 150 tables are sold? (2000
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6 MAT2103 (C2) Lines, Parabolas and Systems
8. Nippon Inc. manufactures its products at a cost of $4 per unit and sells them
for $10 per unit. If the fixed cost for the firm is $12,000 per month,
determine the break - even point for the firm.
9. Using the data in (8), answer the following questions:
a)What is the profit/loss sustained by the firm if
i) 1500 units are produced and sold per month?
ii) 3000 units are produced and sold per month?