Tutorial Letter 101/3/2015: Quantitative Modelling DSC1520

DSC1520/101/3/2015
Tutorial Letter 101/3/2015
Quantitative Modelling
DSC1520
Semesters 1 and 2
Department of
Decision Sciences
Important Information:
This tutorial letter contains important information
about your module.
Bar code
university
Learn without limits. of south africa
CONTENTS CONTENTS
Contents
1 Introduction and welcome 4
2 Purpose of module 4
3 Lecturer 4
4 Communication with the University 4
5 Student support system 5

5.1 Study groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.2 E-tutor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.3 Tutor classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.4 Online services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Study material 6
7 Syllabus for the module 7
8 Relevant sections of the text book 7
9 Learning outcomes and assessment criteria 9
10 Calculator 11
11 Study approach 11
11.1 Study time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
11.2 Study method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
11.3 Study plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
11.3.1 Study unit 1: Preliminaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
11.3.2 Study unit 2: Linear functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
11.3.3 Study unit 3: Linear algebra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
11.3.4 Study unit 4: Non-linear functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
11.3.5 Study unit 5: Beginning calculus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
12 Assessment 18
12.1 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
12.2 Assignment 1, 2 and 3 (COMPULSORY!) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
12.3 Evaluation exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2
CONTENTS CONTENTS
12.3.1 How to attempt the evaluation exercises . . . . . . . . . . . . . . . . . . . . . . . . . . 20

12.3.2 Evaluating your answers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
13 ASSIGNMENTS: SEMESTER 1 21
13.1 Assignment 01 (COMPULSORY): MCQ format . . . . . . . . . . . . . . . . . . . . . . . . . . 21
13.2 Assignment 02 (COMPULSORY): Written format . . . . . . . . . . . . . . . . . . . . . . . . 25
14 ASSIGNMENTS: SEMESTER 2 30
14.2 Assignment 02 (COMPULSORY): Written format . . . . . . . . . . . . . . . . . . . . . . . . 34
15 Solutions: Self-evaluation exercises 40

15.1 Self-Evaluation Exercise 1 : Unit 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
15.2 Self-Evaluation Exercise 2: Unit 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
15.3 Self-Evaluation Exercise 3 : Unit 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
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1 Introduction and welcome
It is a pleasure to welcome you to this module: QUANTITATIVE MODELLING.

We hope that you will enjoy this module and complete it successfully.
It is essential that you read this tutorial letter, Tutorial Letter 101, 2015, as well as Tutorial Letter 301,
2015, very carefully.
• Tutorial Letter 301 contains general information relevant to all undergraduate students in the Depart-
ment of Decision Sciences.
• Tutorial letter 101 contains information about this particular module, including the compulsory as-
signments for this module.
For other detailed information and requirements see myStudies@Unisa, which you received with your tutorial
matter.
2 Purpose of module
To introduce the learner to basic mathematical concepts and computational skills for application in the
business world.
3 Lecturer
You will find the name of the lecturer responsible for this module in Tutorial letter 301. Transfer the name,
email address and telephone number of the lecturer to the space provided below.
All queries about the content of this module should be directed to the lecturer.
4 Communication with the University
If you need to contact the University about matters not related to the content of this module, please
consult the publication myStudies@Unisa, which you received with your study material. This brochure
contains information on how to contact the University (e.g. to whom you can write for different queries,
important telephone and fax numbers, addresses and details of the times certain facilities are open).
Always have your student number at hand when you contact the University.
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5 Student support system
For information on the various student support systems and services available at Unisa (e.g. student coun-
selling, tutorial classes, language support), please consult the publication myStudies@Unisa, which you
received with your study material.
5.1 Study groups
It is advisable to have contact with fellow students. One way to do this is to form study groups. The ad-
dresses of students in your area may be obtained by contacting the Student Administration and Registration
department. See the publication myStudies@Unisa for details.
5.2 E-tutor
The University facilitates e-tutors to promote student success and student interaction. The e-tutor will help
with, for example, solving of problems, lectures on the study material or exercise and solutions regarding the
study material.
5.3 Tutor classes
The University facilitates a tutor service in some centres to assist students. At present students in DSC1520
can benefit from this support service. Interest from a minimum of 15 students is required for a tutor to be
appointed. There is a fee payable to attend these classes. To find out more about the tutorial services
in your area you can phone the regional office of Unisa nearest to you.
5.4 Online services
If you have access to a computer that is linked to the internet, you can quickly access resources and infor-
mation at the University, and communicate electronically with the University and fellow students.
As a registered Unisa student you have free access to myUnisa, Unisa’s learning management system and
myLife, a free email address.
You can access myUnisa and myLife via the internet using an internet browser such as Internet Explorer or
Mozilla Firefox etc., but to do this your computer must be linked to the internet.
If you do not have your own internet access, you may need to visit an internet cafe, library or learning centre
in your area. These centres provide access to the internet at a small fee.
In line with Open Distance learning (ODL) principles, Unisa has established relations with Multipurpose
Community Centres across the country in areas identified as remote. Registered Unisa students across South
Africa’s rural areas and townships can access free internet for academic purposes (access to myUnisa, emails,
digital library, internet research and other computer based training modules) courtesy of Unisa.
For a contact centre close to you, see the publication myStudies @ unisa for details.
To use your myUnisa and myLife account you first need to register on the myUnisa website (http://my.unisa.ac.za/).
During this process you will be issued with a username and choose your own passwords. Note that you first
have to activate your myLife email account before you can activate your myUnisa account.
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• my Life
myLife is a web-based email service that you can use to access your email from anywhere in the world
using an internet browser. To activate your myLife email box, follow the following steps:
– Go to myUnisa at http://my.unisa.ac.za/ and click on the “Claim myLife email” link.

– Provide your details by completing the e-form on the screen. This is done for verification purposes.
– Receive your myLife address and password.
– To access your email account, use the link http://www.outlook.com/, your myLife username
(studentnumber@mylife.unisa.ac.za) and your chosen password.
If you prefer to use another email account, you can configure your myLife account to forward emails
automatically. See myStudies@Unisa for details.
• my Unisa
The myUnisa learning management system is Unisa’s online campus that will help you to communi-
cate with your lecturers, with other students and with the administrative departments of Unisa – all
through the computer and the internet. You will be able to join online discussion forums, submit your
assignments and access a number of other resources. Before you can activate your myUnisa account
you have to activate your myLife email account. To activate your myUnisa account follow the following
steps:
– Create your free myLife email account before you join myUnisa as discussed before.
– Go to http://my.unisa.ac.za/ and click on the “Join myUnisa” link.
– Complete the verification process and choose your own password.
– To log in to myUnisa, type in your student number and chosen password in the space provided
on the top right-hand corner of the myUnisa opening page.
If you have any problems with myUnisa you may send an email to myunisahelp@unisa.ac.za.
Please consult my Unisa on a regular basis as the lecturer, from time to time, post ad-
ditional information on my Unisa. This may include errata on study material, announce-
ments or additional notes to help you better understand a certain part of the study
material.
6 Study material
Your study material consists of the following:
1. A prescribed book,which forms the basis of the study material in this module. It is advisable to
purchase the text book as soon as possible. The text book is your most important source of reference
in this module. It is impossible to pass this module without the textbook.
Teresa Bradley
Essential Mathematics for Economics and Business
John Wiley and Sons Publishing, Fourth Edition, 2013.
OR
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Teresa Bradley and Paul Patton:

Essential Mathematics for Economics and Business
John Wiley and Sons Publishing, Third Edition, 2008.
Please consult the list of booksellers and their addresses in myStudies@Unisa. If you have any difficul-
ties with obtaining books from these bookshops, please contact the Section Prescribe Books as soon as
possible by sending an email to vospresc@unisa.ac.za.
2. This tutorial letter, Tutorial Letter 101, 2015
3. Any additional tutorial letters that may be sent to you during the semester.
The Department of Despatch should supply you with the following study material, when you register:
• Tutorial letter 101, 2015
• Tutorial letter 301, 2015
• Booklet: myStudies@Unisa.
7 Syllabus for the module
The material has been subdivided into five units. The chapters of the textbook that make up the unit are
stated adjacent to the unit.
UNIT TOPIC CHAPTERS

1 Preliminaries 1
2 Linear functions 2
3 Linear algebra 3 and 9
4 Non-linear functions 4
5 Beginning calculus 6 and 8
The textbook forms the basis of your study material.
8 Relevant sections of the text book
Please find the sections in each chapter of the text book that are relevant for the module in the table below.
Please see the section Study plan for a detailed plan for your studies.
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Study Unit Chapter in Sections in Progress Exercise in

text book text book edition 3 / edition 4
1. Preliminaries 1 1.2; 1.3; 1.1, page 7/10
1.4; 1.5 1.2, page 14/17
1.6; 1.7 1.3, page 20/23
1.8 Make sure you know how to
use your calculator
2. Linear Function 2 2.1 2.2, page 55/54
2.2-2.3 2.3, page 69/68
2.4, page 75/75
2.4 2.5, page 81/81
2.6 2.7, page 91/91
3. Linear Algebra 3 3.1 3.1, page 110/111
3.2.1 3.2, page 116/117
3.2.5 3.3, page 125/126
3.3 3.4, page 131/131
9 9.1 9.1, page 485/487
4. Non-linear Functions 4 4.1 4.1, page 152/152
4.2, page 158/158
4.2 4.3, page 163/163
4.4, page 170/170
4.3 4.5, page 176/177
4.6, page 179/179
4.4 4.8, page 183/184
4.9, page 186/186
4.10, page 188/188
4.11, page 195/196
4.12, page 199/199
4.13, page 201/201
5. Beginning Calculus 6 6.1 6.1, page 266/268
6.2.1 6.3, page 278/280
(Just Marginal problems)
6.3.1 6.5, page 287/289
6.3.2 6.6, page 292/295
8 8.1-8.2 8.1, page 433/435
8.5 8.3, page 445/447
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9 Learning outcomes and assessment criteria
Specific outcome 1:
Students understand and can apply mathematical concepts to do basic modelling.
Range:
The context is using linear functions solving elementary quantitative business problems such as demand,
supply, cost and revenue functions and elasticity of demand and supply.
Assessment criteria:
1. Explain the concept of a function.
2. Explain the different characteristics of a linear function.
3. Determine the equation of a linear equation given slope, intercept, or two points on the line or combi-
nations thereof.
4. Graphically represent a linear function by using its slope, intercept, equation or two points on the line.
5. Apply linear functions to problems in the business world, for example demand, supply, cost and revenue.
6. Describe and plot linear demand, supply, cost and revenue functions.
7. Describe the concept and calculate the price elasticity of demand and supply for linear demand and
supply functions.
Specific outcome 2:
Students are able to apply the basic concepts to solve equations and inequalities in practical problems.
Range:
The context is using sets of linear functions and inequalities to solve elementary quantitative business prob-
lems such as break-even analysis, market equilibrium, profit and loss functions and optimisation problems
using linear programming.
1. Solve a system of linear equations algebraically and graphically.
2. Use a set of equations to solve business problems for example break-even, equilibrium and profit and
loss.
3. Determine the consumer surplus and producer surplus.
4. Graphically solve a system of linear inequalities with two variables.
5. Formulate the constraints and objective function of an optimising business problem by using linear
programming.
6. Solve a linear programming problem graphically.
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Specific outcome 3:
Students can apply the basic concepts of non-linear functions to solve practical problems.
Range:
Characteristics and properties of non-linear functions such as quadratic, cubic, logarithmic and exponential
functions are used to solve elementary quantitative business problems like supply and demand functions,
break-even analysis, market equilibrium and minimum and maximum values.
1. Explain the different characteristics of a quadratic function.

2. Calculate the vertex, roots and y-intercepts of a quadratic function.
3. Graphically represent a quadratic function by using its vertex, intercept and roots.
4. Apply characteristics of a quadratic function to solve business problems, for example supply and de-
mand, break-even and equilibrium problems.
5. Explain the different characteristics of the cubic, exponential and logarithmic functions.
6. Simplify and solve exponential and logarithmic expressions and equations by using exponential and
logarithmic rules.
7. Graphically represent a non-linear function by using a substitution table to calculate different values
of the function.
8. Solve one variable of a non-linear function given the value of the other variable of the non-linear
function.
Specific outcome 4:
Students can apply the basic techniques of calculus to solve problems.
Range:
Apply rules of differentiation and integration to solve elementary business problems by determining minimum
and maximum values of a function and the area underneath a curve.
1. Define and determine the slope of a tangent line to a curve.

2. Determine the equation of the line tangent to a curve.
3. Determine the derivative of a basic function by applying a differentiation rule.
4. Determine marginal functions.
5. Calculate the rate at which a function changes.
6. Determine the maximum or minimum value of a function by using differentiation.
7. Explain what is meant by integration of a function.
8. Determine an indefinite integral of a basic function by applying an integration rule.
9. Determine the definite integral (area underneath a curve between x = a and x = b) of a basic function
by applying an integration rule.
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10 Calculator
You will be allowed to use any scientific or financial pocket calculator in the examination. A programmable
calculator will be permitted.
11 Study approach
11.1 Study time
With the semester system a student cannot afford to fall behind with his or her studies. Owing to the limited
study time, it is essential that you plan your study program carefully. Keep in mind that a semester is
not longer than about 15 weeks. The study material has been subdivided into five units and you should
therefore give yourself, on average, not more than three weeks to master each unit. The earlier units
might contain some material that you are already familiar with and therefore you should try to master
them more quickly. You will have to work consistently throughout the semester if you wish to be
successful in this module. Work out your own schedule of dates by which you aim to complete each topic.
Plan your studies in such a way that there will be enough time left for revision before the examination.
11.2 Study method
We suggest that you approach the study material as follows:
1. Study each unit in the syllabus by working through the section in the text book. Each unit contains
examples, exercises and problems, together with solutions. You are expected to work through all of
these.
2. Please contact your lecturers at once if you need any help with the study material, before
you carry on with a new study unit.
3. Do the evaluation exercises of the study unit as specified in the section: “Study plan”. You are
also welcome to work through the additional progress exercises not specified under the self-evaluation
exercises.
4. Only proceed to the next study unit once you’ve mastered all the work of a study unit and have worked
through all the exercises and examples.
Remember the text book forms the basis of the study material in this module.
11.3 Study plan
Below, we explain in detail which parts of the text book, as well as evaluation exercises you need to study
and in what order.
Please remember to contact the lecturer immediately if you need help regarding the study material. Only
once you’ve mastered a study unit and worked through all the examples and exercises do you proceed to the
next study unit.
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11.3.1 Study unit 1: Preliminaries
Practically everything in this unit should be revision only and you should therefore be able to complete
it quite quickly. It is nevertheless important to do the exercises and to be absolutely sure that you have
mastered all the concepts that appear in this part of the study material. Learning mathematics is like
building a house: if the foundation is not solid, the house cannot stand.
• Study material sources

Start with Chapter 1 of the textbook. Work through the following sections and examples in the sections
– 1.2 Arithmetic Operations

– 1.3 Fractions
– 1.4 Solving Equations
– 1.5 Currency Conversions
– 1.6 Simple Inequalities
– 1.7 Calculating Percentages
– 1.8 Make sure you know how to use your calculator
Please contact the lecturer immediately if you need help regarding the study material.
Once you’ve mastered all the study material of the study unit and worked through all
the examples proceed to the evaluation exercises for the study unit.
• Evaluation exercises
The page numbers of Edition 3 of the textbook are mentioned first and then those of
Edition 4. Do the following self-evaluating Evaluation Exercises for Study unit 1:
1. Progress Exercise 1.1, Question 1, page 7 / page 10

12

19. Test Exercise 1, Question 8, part (b) page 34 / page 34
Remember you can find the solutions in Section 15 of this Tutorial letter.
11.3.2 Study unit 2: Linear functions
In this unit you will come across new applications (principally in economic models) of ideas, such as the
graph of a straight line, that should already be familiar to you.
1. Work through the material and examples of the following section of Chapter 2 of the textbook:
– 2.1 The straight line
– 2.2 Mathematical Modelling
– 2.3 Applications: demand, supply, cost, revenue
– 2.4 More mathematics of the straight line
– 2.6 Elasticity of demand, supply and income
• Evaluation Exercises
Edition 4. Do the following Self-evaluation Exercises for Study unit 2:

4. Progress Exercise 2.2, Question 4, page 55/ page 54
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19. Test Exercise 2, Question 6 page 99 / page 99
11.3.3 Study unit 3: Linear algebra
You have probably encountered some of the mathematical techniques in this unit. As in the previous unit,
there are a number of new applications in the economic sciences. You will also briefly encounter the powerful
modelling tool called linear programming.
– 3.1 Solving Simultaneous linear equations
– 3.2 Equilibrium and break-even
∗ 3.2.1 Equilibrium in the goods and labour markets
∗ 3.2.5 Break-even analysis
– 3.3 Consumer and Producer surplus
– 9.1 Linear programming

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11.3.4 Study unit 4: Non-linear functions
The work in this unit involves quite a bit more algebra, with important applications in economics and
business.

Work through the material and examples of the following section of Chapter 4 of the text book:
– 4.1 Quadratic, cubic and other polynomial functions

– 4.2 Exponential functions
– 4.3 Logarithmic functions
– 4.4 Hyperbolic functions of the form a/(bx + c)
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11.3.5 Study unit 5: Beginning calculus
“Calculus” means pebble in Latin and alludes to the roots of the subject in Greek mathematics of the pre-
Christian era, and the earlier use of small stones in calculations. While mathematical development in Europe
languished during the Middle Ages, Indian mathematicians in Kerala developed much of the theory. The
invention of the modern version of the theory is attributed to Sir Isaac Newton and, independently and
roughly simultaneously, the German philosopher Gottfried Leibniz. It is one of the most powerful tools used
by large numbers of applied scientists, economists and engineers. Since this is the most advanced topic in
the course, you should plan on spending a bit more time on this unit that on the others.
1. Work through the material and examples of the following section of Chapter 6 of the text book:
– 6.1 Slope of a curve and differentiation
– 6.2.1 Marginal functions: an introduction
– 6.3.1 Slope of a curve and turning points
– 6.3.2 Determining maximum and minimum turning points
2. Work through the material and examples of the following section of Chapter 8 of the text book:
16
– 8.1 Integration as the reverse of differentiation

– 8.2 The power rule for integration
– 8.5 The definite integral and the area under a curve

2. Progress Exercise 6.1, Question 3, part (c), page 267 / page 269
3. Progress Exercise 6.1, Question 3, part (e), page 267 / page 269
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12 Assessment
This module is assessed by means of a written examination contributing 80% of the final mark and three
compulsory assignments that contribute 20% of the final mark.
Assignment 01 will contribute 35%, Assignment 02 will contribute 35% and Assignment 03 will contribute
30% to the semester mark. Together these assignments will contribute 20% to your final mark for this
module.
Assignment 1: MCQ format
35%
Assignment 2: Written format
35% Semester mark 20%
Assignment 3: MCQ format

Final mark: 50% pass
30%
Examination 80%
12.1 Examination
You are required to submit Assignment 01 to obtain admission to the examination. Admission
will only be obtained by submitting the first assignment on time, and not by the marks you obtain for it.
Please ensure that the first assignment reaches the University before the due date. Students who register for
the first semester will write the examination in May/June and students who register for the second semester
will write the examination in October/November.
The duration of the examination is two hours. See Tutorial letter 102, that you will receive during the
semester, for examination details.
You will be allowed to use any scientific pocket calculator in the examination. A programmable
calculator will be permitted. You may take only your writing materials and your pocket calculator into
the examination hall.
You need at least 50% from your combined assignments and examination mark in order to
pass the module. Note that your assignment marks will only be considered if you obtain at
least 40% in the examination.
12.2 Assignment 1, 2 and 3 (COMPULSORY!)
For students to benefit fully from formative tuition and assessment the Management of the University decided
to introduce compulsory assignments in all modules.
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12.3 Evaluation exercises DSC1520/101
All three the assignments are compulsory for all students in this module. Failure to submit the assign-
ments through the proper channels by the due date may result in admission to the examination not being
granted. Answer the questions to the best of your ability.
The assignments consists of two multiple choice assignments and one written assignment. You may submit
your assignment either by post or electronically via myUnisa. Assignments may not be submitted by fax or
email.
To submit an assignment via myUnisa, follow the steps below.
• Go to https://my.unisa.ac.za/
• Log in with your student number and password.
• Select this course from the orange bar.
• Click on “Assignments” in the left-hand menu.
• Click on the assignment number you want to submit.
• Follow the instructions.
Make sure your assignment has reached Unisa. You can check my Unisa to see if your assign-
ment has reached Unisa by selecting the Assignment option and entering your student number
and course.
Note that neither the Department nor the School of Economic Sciences will be able to confirm whether the
University has received your assignment or not.
The due dates and unique numbers for the compulsory assignments are:
FIRST semester Assignment 01 3 March 2015 504642

Assignment 02 31 March 2015 504680
Assignment 03 22 April 2015 504696
SECOND semester Assignment 01 18 August 2015 504731
Assignment 02 8 September 2015 504755
Assignment 03 6 October 2015 504776
The solutions to the compulsory assignments will be mailed to all students after the due date of the assign-
ment. It will also be posted on myUnisa after the due date. You are welcome to download it in advance.
Remember that the marks obtained in your assignments are accessible under the Assignment option of
myUnisa after it has been marked.
12.3 Evaluation exercises
Evaluation exercises are given on each unit of the study material and are important for the following reasons:
(a) Evaluation exercises assist you in understanding and mastering the study material and its practical
implications. They are therefore an integral part of the study material.
(b) Evaluation exercises test your knowledge and understanding of the study material. They are a way of
evaluating your progress.
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12.3.1 How to attempt the evaluation exercises
You must work through the prescribed study material for a section thoroughly before you
start with the evaluation exercises, in fact before you read the questions for the first time. The
process of understanding and mastering the study material takes time and you should set aside plenty of
time for it. The evaluation exercises consist of just a few questions. Do not let this fool you into thinking
that you can complete these questions quickly. You will need to devote enough time to answer them.
12.3.2 Evaluating your answers
You are responsible for correcting your own evaluation exercises. When marking your exercises, you should
compare your answers with the model solutions. Each calculation and detail of your answer should be
checked against the model answer. This will assist you in understanding each question. The solutions often
contain helpful explanations and remarks. This process of self-evaluation will also ensure that you take note
of the extra information. The solutions often contain helpful explanations and remarks. This process of
self-evaluation will also ensure that you take note of the extra information.
Unless stated otherwise, all exercises are from the text book.
If you have any questions you should not hesitate to contact the lecturers at once.
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13 ASSIGNMENTS: SEMESTER 1
13.1 Assignment 01 (COMPULSORY): MCQ format
Semester Unique Number Due Date

One 504642 3 March 2015
Instructions: Answer all the questions on the mark-reading sheet. Work through the study material of
study units 1 and 2 in your textbook before attempting this assignment.
Question 1
2 5 5 1
Simplify ÷ + 5 ÷ − 1 × 6.
3 6 4 3
[1] −3
3
[2]
10
19
[3] −
20
1
[4] −3
5
[5] None of the above.
Question 2
A house is valued at R600 000,00. This is 20% higher than the price paid for the house. What was the price
paid?
[1] R500 000,00

[2] R480 000,00
[3] R720 000,00
[4] R120 000,00
Question 3
The slope of the line 2y + 20x = 10x − 5 equals
[1] 10
[2] 5
5
[3] −
2
[4] −5
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13.1 Assignment 01 (COMPULSORY): MCQ format DSC1520/101
Question 4
Determine the value of x that solves the inequality:

1 1
−3(x + 1) + 6 x + ≤4 x− .
3 2
3
[1] x≤−
7
[2] x ≤ −1
[3] x≥1
1
[4] x≤−
2
Question 5
Find the equation of the straight line passing through the points (2;1) and (1;2).
[1] y = −x + 3
[2] y = −x + 6
[3] y = 2x + 4
[4] y =x+3
Question 6
The slope of the line 2y = 1 + 4x is
7
[1] − .
2
[2] 7.
[3] 2.
[4] 4.
[5] none of the above.
22
Question 7
The linear function 2P = 20 − Q can be graphically represented as:
[1 ] [2 ]
P P
, , , , , , Q Q
[3 ] [4 ]
P P
Q , , , , , , Q
[5 ] n o n e o f th e a b o v e .
23
Question 8
Find the value of quantity Q for the demand function P = 60 − 4Q when the market price is P = 24.
[1] 8
[2] 9
[3] 10
[4] 11
Question 9
The cost y (in rands) of manufacturing x bicycles is
y = 250x + 720.
How many bicycles have been manufactured if the cost is 37 320 − 50x?
[1] 120
[2] 122
[3] 123
[4] 125
Question 10
If the demand function is P = 250 − 5Q where P and Q are the price and quantity respectively, give an
expression for the price elasticity of demand in terms of P only.
P − 250
[1]
P
P −5
[2]
P
P
[3]
P − 250
P
[4]
P −5
24
13.2 Assignment 02 (COMPULSORY): Written format DSC1520/101
13.2 Assignment 02 (COMPULSORY): Written format

One 504680 31 March 2015
Instructions: Answer all the questions. Work through the study material of study unit 3 in your textbook
before attempting this assignment. Only a selected number of questions will be marked. You will receive the
solutions to all the questions.
Question 1
Determine the coordinates of the intersection of the two lines:
3x + 2y − 3 = 0
x + y + 1 = 0.
Question 2
Solve the following system of linear equations:
x− y+ z = 0
2y − 2z = 2
−x + 2y + 2z = 29.
Question 3
Determine graphically the coordinates of the intersection of the two lines:
y + 2x = 3
y − x = 2.
Question 4
In the following market:
Demand function: Q = 80 − P
Supply function: Q = −8 + 13 P,
where P and Q are the price and quantity respectively. Calculate the equilibrium price and quantity.
Question 5
Calculate the consumer surplus for the demand function
P = 50 − 4Q
when the market price is P = 10.
Question 6
Suppose the cost of manufacturing 10 units of a product is R40 and the cost of manufacturing 20 units is
R70. If the cost C is linearly related to output Q (units produced), calculate the cost of producing 35 items.
25
Question 7
A manufacturer of leather articles produces boots and jackets. The manufacturing process consists of two
activities:
• Making (cutting and stitching)
• Finishing
There are 800 hours available for making the articles and 1 200 hours available for finishing them. It takes
4 hours to make and 3 hours to finish a pair of boots, and 2 hours to make and 4 hours to finish a jacket.
Market experience requires the production of boots to be a minimum of 150 pairs per month. Write down
a system of linear inequalities that describe the appropriate constraints if x is the number of pairs of boots
and y the number of jackets manufactured.
Question 8
Find the equation of the straight line passing through the points (4; 2) and (2; 4).
Question 9
Draw the following set of inequalities and indicate the feasible region where all the inequalities are satisfied
simultaneously:
x + 8y ≤ 400 (1)
x + 2y ≥ 200 (2)
x ≥ 0, y ≥ 0
Question 10
In the graph below the following set of inequalities
2x + y − 5 ≤ 0 (1)
x −2 ≤ 0 (2)
y−4 ≤ 0 (3)
x, y ≥ 0
were drawn and the feasible region of the set of inequalities shaded in grey. Determine the maximum value
of the function C= 20x+ 30y subject to the set of inequalities above.
y x = 2
(½ ; 4 ) y = 4
x
2 x + y - 5 = 0
26

One 504696 22 April 2015
Question 1
Simplify:
36 5 2
1+ × ÷
45 12 3
3
[1]
2
2
[2]
3
1
[3]
2
81
[4]
41
Question 2
The roots of the function y + 6 = 2x2 + x are
[1] x = 2 and x = −3.

[2] x = 3 and y = 2,5.
[3] x = −0,5 and x = −6,25.
[4] x = −2 and x = 1,5.
Question 3
How many units must be produced to maximise a profit defined by the function
2y = −4x2 + 16x − 12?
[1] 1 unit
[2] 2 units
[3] 3 units
[4] 4 units
[5] None of the above
27
Question 4
p
Simplify (x8 )8
[1] x4 .
[2] x8 .
[3] x32 .
[4] x16 .
Question 5

15
log5 0,45 is qual to
[1] −2,107.
[2] 2,179.
[3] 3,739.
[4] 0,701.
Question 6
The number of people who contracted a contagious disease t days after an epidemic started is approximated
by the exponential equation
5 000
Q(t) =
1 + 1 249e−0,33t
Approximately how many people had contracted the disease after 15 days?
[1] 508
[2] 37
[3] 2 167
[4] 5 009
Question 7
√
Find the derivative of the function: G(x) = x(x2 − 4 x + 4)
3
[1] G′ (x) = x3 − 4x 2 + 4x
1
[2] G′ (x) = 3x2 − 32 x 2 + 4
5
[3] G′ (x) = 3x4 − 6x 2 + 4x2
1
[4] G′ (x) = 3x2 − 6x 2 + 4
28
Question 8
Evaluate
1 1
Z
x3 (1 + + √ )dx
x2 x2
x3 3
[1] x3 + x2 + √x + c.
x2
x4 x2 x3
[2] 4 + 2 + 3 + c.
[3] 4x4 + 2x2 + 3x3 + c.
x4 x2 √1
[4] 4 + 2 + + c.
3 x2
Question 9
R5 1 2
Calculate x (2x + x4 ) dx
1
[1] 180.
[2] 69,25.
[3] 180,50.
[4] 132.
Question 10
What is the marginal cost when Q = 9 if the total cost is given by
T C = 3Q3 − Q2 + 70Q + 800?
[1] 574
[2] 781
[3] 504
[4] 434
29
DSC1520/101
14 ASSIGNMENTS: SEMESTER 2

Two 504731 18 August 2015
Instructions: Answer all the questions on the mark-reading sheet.Work through the study material of study
units 1 and 2 in your textbook before attempting this assignment.
Question 1
Find the slope of the line 0 = 6 + 3x − 2y.
2
[1]
3
3
[2]
2
[3] 3
[4] 2
Question 2
Simplify the following
(x − 4)(x + 3)
.
(x − 4)(x + 5)
x−3
[1]
x−5
x+3
[2]
x+5
x+4
[3]
x−4
3
[4]
5
30
Question 3
The x-intercept of the line
2y − 10x + 5 = 0
equals
[1] −0,5.
[2] 0,5.
[3] 10.
[4] 20.
Question 4
A suit costs R800 in 2012. The price of the suit was increased by 21% in 2013. In 2014 the price of a suit
was increased by 25% of the 2013 price. What was the price of the suit in 2014?
[1] R1 210,00
[2] R1 000,00
[3] R1 168,00
[4] R968,00
Question 5
4
Find the equation of the line passing through the points (3;1) and ( ; 2).
3
3 14
[1] y =− x+
5 5
3
[2] y =− x+1
5
14
[3] y =x+
5
3 14
[4] y =− x−
5 5
Question 6
A car was valued at R170 000 in 2013 and R140 000 in 2014. Calculate the percentage decrease in the value
of the car between 2013 and 2014.
[1] 17,65%
[2] 17%
[3] 18,15%
[4] 18%
31
Question 7
Simplify
3 5 1 3 5
÷2 1 − + × .
4 6 2 2 2
1
[1] 4
32
3
[2] 5
4
3
[3]
4
9
[4] 3
10
Question 8
A swimming club provides x number of swimming lessons per day. The club has a daily fixed cost of R1 250
when offering lessons. The variable cost is (30 + 20x) for each lesson given. Write down the linear equation
for the total cost of the club per day.
[1] Cost = 20x + 1 280

[2] Cost = 1 280
[3] Cost = 1 280x
[4] Cost = 1 280x + 20
Question 9
A company manufactures radios. If x is the number of radios that retailers are likely to purchase at a price
x
p(x) = 5 − rand per unit and the cost function is given by c(x) = 5 000 + 2x, what is the revenue
1 000
function of the manufacturing company?
x
[1] R(x) = 5 −
1 000
x
[2] R(x) = 5 − − 5 000 + 2x
1 000
[3] R(x) = 5x − 0,001x2
[4] R(x) = 5 000 − x
32
Question 10
1
If the demand function is P = 50 − Q where P and Q are the price and quantity respectively, give an
2
expression for the price elasticity of demand in terms of P only.
P
[1] P − 21
P − 21
[2] P
P
[3] P −50
P −50
[4] P
33
14.2 Assignment 02 (COMPULSORY): Written format

Two 504755 08 September 2015
Instructions: Answer all the questions. Work through the study material of study unit 3 in your textbook
before attempting thin assignment. Only a selected number of questions will be marked. You will receive the
solutions to all the questions.
Question 1
Determine the coordinates of the intersection of the two lines:
y + 2x = 3
y − x = 2.
Question 2
Solve the following systems of equations:
x + 2y − z = 5 (1)
2x − y + z = 2 (2)
y+z = 2 (3)
Question 3
Consider the market for rugby balls defined by:
Demand function: Q = 400 − 12 P

Supply function: Q = 5 + 18 P
where P and Q are the price and quantity respectively. Calculate the equilibrium price and quantity.
Question 4
The driving school provides x number of lessons per day. The school has a daily fixed cost of R1 250 when
offering lessons. The variable cost is given as R335 for each lesson given. If the revenue function of the school
per day is given as 9 000 + 25x, how many lessons should be provided in order to break even?
Question 5
(a) Find the equation of the line passing through the points (1; 20) and (5; 60).
(b) Draw the graph of the line y = 10x + 10.
34
Question 6
Calculate the consumer surplus for the demand function
P = 90 − 5Q
when the market price is P = 20.
Question 7
Draw the following set of inequalities and indicate the feasible region where all the inequalities are satisfied
simultaneously:
−x1 + x2 ≤ 3
x1 + x2 ≥ 5
x1 ≤ 3
x1 ; x2 ≥ 0.
Question 8
In the graph below the set of inequalities
2x + 6y ≥ 30 (1)
4x + 2y ≥ 20 (2)
y ≥ 2 (3)
x,y ≥ 0
were drawn and the feasible region of the set of inequalities shaded in grey. Determine the minimum value
25
20
15
A
10
5
B y=2
D
x
0 5 10 15 20 25
2x + 6y = 30
4x + 2y = 20
of the function Z = 18x + 12y subject to the set of inequalities above.
35
Question 9
Pianni Beverages produces two ready-mixed cocktail drinks, the Zombie and the Skyjack. Each is a mixture
of vodka, vermouth and ginger ale. It takes 3 litres of vodka, 6 litres of vermouth and 1 litre of ginger ale to
make a container of Zombie and 5 litres of vodka, 3 litres of vermouth and 2 litres of ginger ale to make a
container of Skyjack. The maximum litres of vodka and vermouth available per day are 1 500 litres of vodka
and 1 500 litres of vermouth. The minimum litres of ginger ale available per day is 400 litres of ginger ale. If
x is the number of containers of Zombie mixed and y the number of containers of Skyjack mixed, determine
the system of inequalities that best describes the situation. Do not solve the system of inequalities.
Question 10
The price of a T-shirt including a 20% markup is R36. What is the price of the T-shirt before the markup?
36

Two 504776 6 October 2015
Question 1

3
log3 √ , to four decimal places, equals
3
[1] −0,0795.
[2] 0,0795.
[3] 2,0000.
[4] 0,5000.
Question 2
Solve the inequality x2 − 3x ≥ 6 − 2x
[1] −2 ≤ x ≤ 3.
[2] −6 ≤ x ≤ 1.
[3] x ≤ −2; x ≥ 3.
[4] x ≤ −3; x ≥ 2.
Question 3
Determine the roots of 6x2 + 5x − 1.
1
[1] x = ;x = 1
6
1
[2] x = ;x = 1
6
1
[3] x = − ;x = 1
4
1
[4] x = ; x = −1
6
37
Question 4
If y = 2−x , find x if y = 0,0625.
[1] x = −2
[2] x=3
[3] x=4
[4] x=5
Question 5
Evaluate the following definite integral: Z 2
(x2 − 3)dx
−2
2
[1] 6
3
2
[2] −6
3
1
[3] 3
3
1
[4] −3
3
Question 6
Evaluate
1
Z
2
x 1 + 2 dx.
x
[1] x3 + x + c
1 3
[2] x +x+c
3
[3] x2 + 1
1 2
[4] x +x+c
2
38
Question 7
Simplify
d x − x2

√ .
dx x
2√ 1
[1] x+ √
3 2 x
1 3√
[2] √ − x
2 x 2
3√ 1
[3] x− √
2 2 x
3√ 1
[4] x+ √
2 2 x
Question 8
The demand function of a firm is Q = 150−0,5P , where P and Q represent the quantity and price respectively.
At what value of Q is marginal revenue equal to zero?
[1] 150
[2] 75
[3] 113
[4] 0
Question 9
The coordinates of the turning point of the function y = x2 − 2x + 3 are
[1] (1 ; 1).
[2] (1 ; 2).
[3] (1 ; 3).
[4] (1 ; 4).
Question 10
What is the marginal cost when Q = 10 if the total cost is given by:
TC = Q4 − 30Q2 + 300Q + 500?
[1] 3 700
[2] 4 900
[3] 4 200
[4] 6 400
39
DSC1520/101
15 Solutions: Self-evaluation exercises
Evaluating your answers
You are responsible for correcting your own self-evaluation exercises. When marking your exercises, you
should compare your answers to the model solutions. Each calculation and detail of your answer should be
checked against the model answer. This will assist you in understanding each Question. The solutions often
contain helpful explanations and remarks. This process of self-evaluation will also ensure that you take note
of the extra information.
Unless stated otherwise, all exercises are from the text book. Exercises’ page numbers from
Edition 3 of the text book are quoted first and those of Edition 4 second.
15.1 Self-Evaluation Exercise 1 : Unit 1
1. Progress Exercises 1.1, page 7 / page 10
(i) Question 1
2x + 3x + 5(2x − 3) = 2x + 3x + 10x − 15 (Removing brackets)

= 15x − 15 (putting like terms together)
= 15(x − 1) (factoring out common 15)
(ii) Question 2
4x2 + 7x + 2x(4x − 5) = 4x2 + 7x + 8x2 − 10x
= 12x2 − 3x
= 3x(4x − 1)
(iii) Question 3
2x(y + 2) − 2y(x + 2) = 2xy + 4x − 2xy − 4y
= 4x − 4y
= 4(x − y)
(iv) Question 4
(x + 2)(x − 4) − 2(x − 4) = x2 − 4x + 2x − 8 − 2x + 8 (Removing brackets)

= x2 − 4x (putting like terms together)
= x(x − 4) (factoring out common x)
(v) Question 5
(x + 2)(y − 2) + (x − 3)(y + 2) = xy − 2x + 2y − 4 + xy + 2x − 3y − 6
(putting like terms together)
= 2xy − y − 10
(vi) Question 6
(x + 2)2 + (x − 2)2 = x2 + 4x + 4 + x2 − 4x + 4
= 2x2 + 8
= 2(x2 + 4)
40
15.1 Self-Evaluation Exercise 1 : Unit 1 DSC1520/101
(vii) Question 7
(x + 2)2 − (x − 2)2 = (x2 + 4x + 4) − (x2 − 4x + 4)
= x2 + 4x + 4 − x2 + 4x − 4
= 8x
(viii) Question 8
(x + 2)2 − x(x + 2) = x2 + 4x + 4 − x2 − 2x
= 2x + 4
= 2(x + 2)
(ix) Question 9
1 3 5 (1 × 5 × 7) + (3 × 3 × 7) + (5 × 3 × 5)
+ + = (Common denominator)
3 5 7 3×5×7
35 + 63 + 75
=
105
173
=
105
68
= 1
105
(x) Question 10
x x 3x − 2x
− = (Common denominator)
2 3 2×3
x
= (Simplifying)
6
(xi) Question 11
2

3 2 1
1 = ÷
5
3 5
2 5
= × (Invert denominator and multiply)
3 1
10
=
3
(xii) Question 12
2

7 2
= ÷3
3 7
2 1
= ×
7 3
2
=
21
(xiii) Question 13
(4 − x2 )

2 x
2 − = 2 (Common denominator)
x 2 2x
4 − x2
= (Cancelling out common factors)
x
4 x2
= −
x x
4
= −x
x
41
(xiv) Question 14

−12 3p p −12 3p + p
+ = (Common denominator)
p 2 2 p 2

−12 4p
=
p 2
= −24 (Cancelling out common terms)
(xv) Question 15
3

x 3 1
= × (invert and multiply )
x+3 x x+3
3
=
x(x + 3)
(xvi) Question 16

5Q

P +2 5Q P +2
= × (invert and multiply )
1 P +2 1
P +2
= 5Q (since P + 2 cancels out )
(i) Question 1
2x + 3x + 5(2x − 3) = 30
2x + 3x + 10x − 15 = 30 (Removing brackets)
15x − 15 = 30 (like terms together)
15x = 30 + 15 (like terms together)
15x = 45
15x 45
= (dividing by 15 both sides)
15 15
x = 3
(ii) Question 2
4x2 + 7x − 2x(2x − 5) = 17
4x2 + 7x − 4x2 + 10x = 17 (Removing brackets )
17x = 17 (like terms together )
x = 1 (dividing both sides by 17 )
(iii) Question 3
(x − 2)(x + 4) = 0
Either x − 2 = 0 or x + 4 = 0
x = 2 or x = −4
42
(iv) Question 4
(x − 2)(x + 4) = 2x
x(x + 4) − 2(x + 4) − 2x = 0 (Expanding brackets )
2
x + 4x − 2x − 8 − 2x = 0
x2 − 8 = 0 (like terms together )
2
x = 8
√
x = ± 8 (taking square-root of both sides )
(v) Question 5
(x − 2)(x + 4) = −8
x(x + 4) − 2(x + 4) + 8 = 0 (Expanding brackets )
2
x + 4x − 2x − 8 + 8 = 0
x2 + 2x = 0
x(x + 2) = 0 (factorising )
Either x = 0 or x + 2 = 0
x = 0 or x = −2
(vi) Question 6
x(x − 2)(x + 4) =0
Either x = 0, x − 2 = 0 or x+4=0 (Equating each bracket to zero).
Therefore x = 0, x=2 x = −4.
(vii) Question 7
4x(x − 2)(x − 2) =0
Either 4x = 0, x − 2 = 0 or x − 2 = 0 (Equating each term to zero).
x = 0, x=2
(viii) Question 8
2x(y + 2) − 2y(x + 2) = 0
2xy + 4x − 2xy − 4y = 0 (Expanding each bracket )
4x − 4y = 0
4x = 4y
x = y (dividing both sides by 4 )
There are many solutions.
43
(ix) Question 9
(x + 2)(y + 2) = 0
Either x + 2 = 0 or y+2=0 (Equating each bracket to zero).
Either x = −2 or y = −2.
(x) Question 10
(x + 2)(y + 2) + (x − 3)(y + 2) = 0
(y + 2)[x + 2 + x − 3] = 0 (Factoring out y + 2.)
(y + 2)(2x − 1) = 0 (simplifying the x terms).
Either y + 2 = 0 or 2x − 1 = 0
Therefore y = −2 or 2x = 1
1
x= 2
(xi) Question 11
(x − 2)(x + 4) − 2(x − 4) = 0
x(x + 4) − 2(x + 4) − 2(x − 4) = 0 (Expanding brackets)
2
x + 4x − 2x − 8 − 2x + 8 = 0
x2 = 0 (adding like terms together)
x = 0 (finding square-root of both sides)
(xii) Question 12
(x + 2)2 + (x − 2)2 = 0
(x + 2)(x + 2) + (x − 2)(x − 2) = 0
x(x + 2) + 2(x + 2) + x(x − 2) − 2(x − 2) = 0
x2 + 2x + 2x + 4 + x2 − 2x − 2x + 4 = 0
2x2 + 8 = 0
2x2 = −8
x2 = −4
√ √
x= −4 or x = − −4. These are complex numbers and beyond the scope of this module.
(xiii) Question 13
(x + 2)2 − (x − 2)2 = 0
(x + 2)(x + 2) − (x − 2)(x − 2) = 0
x(x + 2) + 2(x + 2) − x(x − 2) − −2(x − 2) = 0 (Expanding each bracket)
2 2
x + 2x + 2x + 4 − x + 2x + 2x − 4 = 0
8x = 0 (adding like terms)
x = 0 (dividing both sides by 8)
44
(xiv) Question 14
x(x2 + 2) = 0
Either x = 0 or x2 + 2 = 0
x=0 or 2
x =√−2 √
x=0 or x = −2 or x − −2. These are complex numbers beyond the scope
of this module.
(xv) Question 15
x x 2
− =
3 2 3
2x − 3x 2
= (finding common denominator of LHS)
3×2 3
x 2
− =
6 3
2
x = − ×6 (multiplying both sides by 6)
3
x = −4
(xvi) Question 16
x
= 2x
3
x = 6x (cross-multiplying )
x − 6x = 0 (like terms together )
−5x = 0
x = 0 (dividing by −5 both sides )
(xvii) Question 17
2 3
− = 1
x 2x
4−3
= 1 (common denominator )
2x
1 = 2x (cross multiplying )
or 2x = 1
1
x = (dividing both sides by 2 )
2
(xviii) Question 18
4x(x − 4)(x + 3,8)
= 0
x4 − 4x3 + 7x2 − 5x + 102
4x(x − 4)(x + 3,8) = 0 (cross-multiplication )
4x = 0, x − 4 = 0, x + 3,8 = 0 (equating each bracket to zero )

x = 0, x = 4, or x = −3,8
45
3. Progress Exercises 1.3, Question 1, page 20 / page 23
(a) x > 2
x
0 2
(b) x < 25
x
0 2 5
(c) x > −4
x
- 4 0
(d) x ≥ −1,5
x
- 2 - 1 ,5 - 1 0
(e) −4 ≥ x
x
- 4 0
(f) 60 < x
x
0 6 0
46
(a) x − 25 > 7
x > 7 + 25
x > 32
x
0 3 2
x is greater than 32.

(b) 5 < 2x + 15
5 − 15 < 2x
−10 < 2x
−5 < x
or x > −5
x
- 5 0
x is greater than −5.
25
(c) < 10
x
25 < 10x
25
< x
10
2,5 < x
or x > 2,5
0 2 2 ,5 3
x is greater than 2,5.
x x 17
(d) + ≥
2 3 6
x x 17
6× + 6× ≥ 6× (Multiplying throughout by the lowest common multiple, 6).
2 3 6
3x + 2x ≥ 17
5x ≥ 17
17
x ≥
5
x ≥ 3,4
x
0 3 ,4
x is greater or equal to 3,4.
47
(e) 3x − 29 ≤ 7x + 11
3x − 7x ≤ 11 + 29 (like terms together).
−4x ≤ 40
−4x 40
≥ (divide by −4 both sides).
−4 −4
x ≥ −10 (inequality changes direction when
(dividing by a negative number).

x
1 0 0
x is greater or equal to −10.

12
(a) 12% of 5 432,7 = × 5 432,7
100
= 651,924
(b) 85% of 23,65 = 0,85 × 23,65
= 20,1025
(c) 11,5% of 6,5 = 0,115 × 6,5
= 0,7475
(a)
The increase in the hourly rate = 0,14 × 5,65
= 0,791
The increase is £0,791.
(b)
The new hourly rate = old hourly rate + increase
= 5,65 + 0,791
= 6,441
The new hourly rate is £6,411.

Week 1
Number of cars produced = 400 − 0,2 × 400
= 400 − 80
= 320.
Week 2
= 320 − 64
= 256.
48
Week 3
= 256 − 51,2
≈ 256 − 51
≈ 205.
Week 4
= 205 − 41
= 164.
Week 5
= 164 − 32,8
≈ 164 − 33
≈ 131.
Week 6
= 131 − 26,2
≈ 131 − 26
≈ 105.
Profit = Selling Price − Cost Price

= 658 − 480
= 178
Profit
Profit as a percentage of cost =
Cost
178
=
480
= 0,3708333333
≈ 37,08%.
49
15.2 Self-Evaluation Exercise 2: Unit 2 DSC1520/101
9. Test Exercise 1, Question 8, part (b), page 34 / page 35
Total tonnage of tea = 400 + 580 + 250 + 120

= 1 350tons.
400
Percentage from India =
1350
= 0,2962962963
≈ 29,63%
580
Percentage from China =
1350
= 0,4296296296
≈ 42,96%
250
Percentage from Sri Lanka =
1350
= 0,1851851852
≈ 18,52%
120
Percentage from Burma =
1350
= 0,888888889
≈ 8,89%.
Check: 29,63 + 42,96 + 18,52 + 8,89 = 100
15.2 Self-Evaluation Exercise 2: Unit 2
We may use any two points on the straight line to compute the slope of the line, for example (−1; 7)
and (5;1):
∆x = 5 − (−1) = 6 ∆y = 1 − 7 = −6
so that
∆y −6
m= = = −1.
∆x 6
(a) y = x + 2 = 1 · x + 2
(i) Slope = 1.
50
b
7
b
6
b
5
∆y 4
b
3
b
1
∆x
x
−3 −2 −1 1 2 3 4 5 6 7 8
−1 b
(ii) If x = 0, y = 2. Therefore y-intercept = 2.

If y = 0, 0 = x+2
−2 = x
or x = −2. Therefore x-intercept = −2.
(iii)
x y
−2 −2 + 2 = 0 y
0 0+2=2
2 2+2=4
4 4+2=6
1 0
6 6+2=8 8
x
x
6
4 x
2 x
x x
- 2 - 1 0 1 2 3 4 5 6
(b) y = −4x + 3 = −4 × x + 3
(i) Slope = −4.
51
(ii) If x = 0, y = −4 × 0 + 3 = 3. Therefore y-intercept = 3.
If y = 0, 0 = −4x + 3
4x = 3
4x 3
=
4 4
3
x =
4
x = 0,75
Therefore x-intercept = 0,75.

(iii)
x y
−2 −4 × −2 + 3 = 8+3 = 11
0 −4 × 0+3 = 0+3 = 3
2 −4 × 2+3 = −8 + 3 = −5
4 −4 × 4+3 = −16 + 3 = −13
6 −4 × 6+3 = −24 + 3 = −21
y
9
6
3
x
- 2 0 2 4 6
- 3
- 6
- 9
- 1 2
- 1 5
- 1 8
- 2 1
(c) y = 0,5x − 2 = 0,5 × x − 2.

(i) Slope = 0,5.
(ii) If x = 0, y = 0,5 × 0 − 2 = −2. Therefore y-intercept = −2.
If y = 0, 0 = 0,5x − 2
2 = 0,5x
2
= x
0,5
or x = 4.
Therefore x-intercept = 4.
52
(iii)
x y
−2 0,5 × −2 − 2 = −1 − 2 = −3
0 0,5 × 0−2 = 0−2 = −2
2 0,5 × 2−2 = 1−2 = −1
4 0,5 × 4−2 = 2−2 = 0
6 0,5 × 6−2 = 3−2 = 1
y
1 x
x
- 2 - 1 0 1 2 3 4 5 6
- 1
- 2
x - 3
- 4
- 1 5
- 1 8
- 2 1
(d)
2y = 6x + 4
2y 6x 4
= + (dividing by 2 both sides)
2 2 2
y = 3 × x + 2.
(i) Slope = 3.
(ii) If x = 0, y = 3 × 0 + 2 = 0 + 2 = 2. Therefore y-intercept = 2.
If y = 0, 3x + 2 = 0
3x = 0−2
3x = −2
3x 2
= −
3 3
2
or x = −
3
2
Therefore x-intercept = − .
3
53
(iii)
x y
−2 3 × −2 + 2 = −6 + 2 = −4
0 3 × 0+2 = 0+2 = 2
2 3 × 2+2 = 6+2 = 8
4 3 × 4+2 = 12 + 2 = 14
6 3 × 6+2 = 18 + 2 = 20
2 0 x
y
1 6
x
1 2
8 x
4
x
x
- 2 0 2 4 6
y = f (x) = mx + c.
(a)
y = 2 = 0×x+2
Slope = 0 (horizontal line).
If x = 0, y = 2. (y−intercept)
(b)
x = −2
Slope = ∞ (vertical line).
If y = 0, x = −2 (x−intercept)
54
(c)
5x + y + 4 = 0
or y = −5x − 4
Slope = −5
If x = 0, y = −5 × 0 − 4 = 0 − 4 = −4 (y−intercept)
If y = 0 0 = −5x − 4
5x = −4
5x 4
= −
y 5
4
x = −
5
or x = −0,8 (x−intercept)
1
x
- 3 - 2 - 1 0 1
- 1
- 2
- 4
- 5
(d)
y =x = 1×x+0
Slope = 1.
If x = 0, y = 0 (y−intercept)
If y = 0, x = 0 (x−intercept)
Therefore, line passes through the origin.
55
- 3 - 2 - 1 0 1 2 3
- 1
- 2
(e)
x−y+5 = 0
x+5 = y
or y = x+5
Slope = 1.
If x = 0, y = 5 (y−intercept)
If y = 0, x + 5 = 0
x = −5 (x−intercept)
y
x
- 6 - 4 - 2 0 1 2 3
- 1
- 2
(a) 2y − 5x + 10 = 0
(i)
2y = 5x − 10
5 10
y = x−
2 2
y = 2,5x − 5
(ii)
If x = 0, y = −5 y-intercept.
If y = 0, 2,5x − 5 = 0
2,5x = 5
x = 2 x-intercept.
56
c h a n g e in x
x
0 2 4
c h a n g e in y
(iii) Magnitude of change in x = 2

Magnitude of change in y = 5
magnitude of change in y
magnitude of slope =
magnitude of change in x
5
=
2
= 2,5
(b) x = 10 − 2y
(i)
2y = −x + 10
x 10
y = + −
2 2
y = −0,5x + 5
(ii)
If x = 0, y = 5 y-intercept.
If y = 0, 0 = −0,5x + 5
0,5x = 5
5
x =
0,5
x = 10 x-intercept.
57
x
- 2 0 2 4 6 8 1 0 1 2
(iii) Change in y = 0 − 5 = −5
Change in x = 10 − 0 = 10
−5
=
10
= −0,5
(c) y + 5x = 15
(i) y = −5x + 15
(ii)
If x = 0, y = 15 y-intercept.
If y = 0, 0 = −0,5x + 15
5x = 15
5x 15
=
5 5
x = 3 x-intercept.
y
1 5
1 2
x
0 2 4
58
(iii) Change in y = 0 − 15 = −15

Change in x = 3 − 0 = 3
−15
=
3
= −5
(a) y = 2x + 1
(i) If x = 1, y = 2 × 1 + 1 = 2 + 1 = 3.
Therefore A(1; 3) lies on the line y = 2x + 1
(ii) If x = −1, y = 2 × −1 + 1 = −2 + 1 = −1.
Therefore B(−1; −1) lies on the line y = 2x + 1
(iii) If x = 0, y = 2 × 0 + 1 = 0 + 1 = 1.
Therefore C(0; 1) lies on the line y = 2x + 1
(b) Q = 50 − 0,5P
(i) If P = 90, Q = 50 − 0,5 × 90 = 50 − 45 = 5.
Therefore A(90; 5) lies on the line Q = 50 − 0,5P
(ii) If P = 8, Q = 50 − 0,5 × 8 = 50 − 4 = 46.
Therefore B(8; 10) does not lie on the line Q = 50 − 0,5P
(iii) If P = 70, Q = 50 − 0,5 × 70 = 50 − 35 = 15.
Therefore C(70; 15) lies on the line Q = 50 − 0,5P
(c) T C = 10 + 2Q
(i) If Q = 2, T C = 10 + 2 × 2 = 10 + 4 = 14
Therefore A(2; 14) lies on the line T C = 10 + 2Q
(ii) If Q = 14, T C = 10 + 2 × 14 = 10 + 28 = 38
Therefore B(14; 18) does not lie on the line T C = 10 + 2Q
(iii) If Q = 6, T C = 10 + 2 × 6 = 10 + 12 = 22
Therefore C(6; 22) lies on the line T C = 10 + 2Q.
Equation y = −2x + 5 y + 2x + 5 = 0 0,2y + 0,4x = 2

x-intercept 0 = −2x + 5,2x = 5 2x + 5 = 0 0,4x = 2
x = 52 = 2,5 2x = −5 x=5
x = −2,5
y-intercept y = 0+5 y+5 = 0 0,2y = 2
y=5 y = −5 y = 10
59
y
(a )
1 0
(b ) 4
x
- 3 - 2 - 1 0 1 2 3 4 5 6 7
- 2
- 4
(c )
(i) lines are parallel.

(ii) No, this property does not change.

Q = 64 − 4P
(a)
If P = 0, Q = 64
If Q = 0, 0 = 64 − 4P
4P = 64
64
P =
4
P = 16.
Q
6 4
P
0 1 6
(b) Change in demand when price increases by 1 unit is the same as the slope of the line
Q = 64 − 4P. C = −4.
Therefore, demand will decrease by 4 units if price increases by 1 unit.
60
(c) If P = 0, Demand = 64.

64
(d) If Q = 0, Price = = 16.
4
P = 500 + 2Q
(a)
If Q = 0, P = 500
If Q = 100, P = 500 + 2 × 100
P = 500 + 200
P = 700
P
6 0 0
4 0 0
2 0 0
Q
0 1 0 0
5 0
(b) If P = 600, then

500 + 2Q = 600
2Q = 600 − 500
2Q = 100
Q = 50
If price is 600 francs, then 50 litre of cognac are supplied.
(c) If P = 0, then
P = 500 + 2 × 20
= 500 + 40
P = 540
If 20 litre of Cognac are supplied, the price of each bottle will be 540 francs.
p = 50
(a) Slope = 0 (horizontal line).
61
(b)
P
5 0
Q
0
If quantity changes by 10 units, price does not change.

Q = 1200
(a) Slope = ∞ (vertical line).
(b)
Q
1 2 0 0
Regardless of the price, 1200 dinners will be supplied every day.

(a)
T R = price × quantity
T R = 10Q
(b)
T R
6 0
4 0
2 0
Q
0 1 2 3 4 5 6
62
Therefore, price = 10.
(a)
Total cost = Fixed cost + Variable cost
= Fixed cost + Variable cost per unit × Quantity
Therefore, TC = 250 + 25Q.
Q TC
0 250 + 25 × 0 = 250 + 0 = 250
10 250 + 25 × 10 = 250 + 250 = 500
20 250 + 25 × 20 = 250 + 500 = 750
30 250 + 25 × 30 = 250 + 750 = 1000
40 250 + 25 × 40 = 250 + 1000 = 1250
50 250 + 25 × 50 = 250 + 1250 = 1500
60 250 + 25 × 60 = 250 + 1500 = 1750
T C
1 6 0 0
1 4 0 0
1 2 0 0
1 0 0 0
9 5 0
8 0 0
6 0 0
4 0 0
2 0 0
Q
1 0 2 0 2 8 3 0 4 0 4 6 5 0 6 0 7 0
(b)
If Q = 28 T C = 250 + 25 × 28
= 250 + 700
= 950
(c)
If T C = 1400, 250 + 25Q = 1400
25Q = 1400 − 250
25Q = 1150
Q = 46.
(c) See the dotted lines on the graph.
Total revenue = price × quantity
(a) Therefore, T R = 32Q
63
(b)
If T R = 1 024, then 32Q = 1 024
1 024
Q =
32
Q = 32.
There are 32 students.
(c)
If T R = 44, then T R = 32 × 44
T R = 1 408
T C = 250 + 25 × 44
= 250 + 1 100
T C = 1 350.
Therefore, revenue exceeds costs by 1 408 − 1350 = 58.
Let Q = number of units of lunch.

P = price of lunch
(a) If Q = 80 when P = £5 and Q = 45 when P = £12, then

Q − 80 45 − 80
= (From the formula of a straight line given two points).
P −5 12 − 5
35
Q − 80 = − (P − 5)
7
Q = −5(P − 5) + 80
Q = −5P + 25 + 80
Q = 105 − 5P
(b)
(i) If price increases by £3, demand decreases by 5 × 3 = 15 units.
(ii) If price decreases by £2, demand increases by 5 × 2 = 10 units.
(c)
If Q = 105 − 5P
5P = 105 − Q
5P 105 Q
= −
5 5 5
P = 21 − 0,2Q
If Q increases by 15 units, then the price will decrease by £3(0,2 × 15 = 3)
Let Q = number of scarves

P = price of scarves, in pounds.
64
(a) If Q = 50 when price = £6 and Q = 90 when price is £11 then
P −6 11 − 6
= (Using the formula of the linear function given two points).
Q − 50 90 − 50
5
P −6 = (Q − 50)
40
P = 0,125Q − 6,25 + 6
P = 0,125Q − 0,25
1
(b) For each £1 increase in price, 0,125 = 8 more scarves are supplied.
(c) If P = £8,50,
0,125Q − 0,25 = 8,50
0,125Q = 8,50 + 0,25
0,125Q = 8,75
8,75
Q =
0,125
Q = 70
(d) If Q = 120, then
P = 0,125 × 120 − 0,25
P = 15 − 0,25
P = 14,75.
(e) If Q = 0, then P = −0,25.
P = 90 − 0,05Q and 0,05Q = 90 − P

or Q = 1800 − 20P
(a)
1 P
(i) εd = − ×
b Q
1 P
= − ×
0,05 1800 − 20P
P
εd = .
P − 90
1 P
(ii) εd = − ×
b Q
1 90 − 0,05Q
= − ×
0,05 Q
Q − 1800
εd = .
Q
(b)
20
(i) If P = 20, then εd = 20−90 = − 20
70 = −0,2857.
30
(ii) If P = 30, then εd = 30−90 = − 30
60 = −0,5.
65
70
(iii) If P = 70, then εd = 70−90 = − 70
20 = −3,5.
(c)
Q − 1 800
(i) If εd = −1, then = −1
Q
Q − 1 800 = −Q
Q+Q = 1 800
2Q = 1 800
1 800
Q =
2
Q = 900.
Q − 1 800
(ii) If εd = 0, then = 0
Q
Q − 1 800 = 0
Q = 0 + 1 800
Q = 1 800.
(a)
Change in quantity ∆Q
Slope = =
Change in price ∆P
For a linear demand function, this is the same at every point.
%change in quantity
εd =
%change in price
△Q
Q
=
△P
P
△Q P
= ×
Q △P
△Q P
= ·
△P Q
εd is different at every point.
66
(b)
price, P 20 30 45 70 90
slope, m −0,05 −0,05 −0,05 −0,05 −0,05
elasticity, εd −0,2857 −0,5 −1,0 −3,5 −∞
% △P (fixed ) 10% 10% 10% 10% 10%
% △Q −2,857% −5% −10% −35% −∞
Where %△Q = %△P × εd
(a)
P = 20 + 0,5Q or 0,5Q = −20 + P
20 P
Q = − 0,5 + 0,5
Q = −40 + 2P.
If P = 40, then Q = −40 + 2 × 40 = −40 + 80 = 40
If P = 60, then Q = −40 + 2 × 60 = −40 + 120 = 80
1 P1 + P2
Elasticity, εd = − ×
b Q1 + Q2
1 40 + 60
= ×
0,5 40 + 80
2 100
= ×
1 120
5
εd =
3
(b)
1 40 1
(i) If P = 40, then Q = 40, εd = × = = 2.
0,5 40 0,5
If %△P = 10%, then %△Q = %△P × εd = 10% × 2 = 20%.

(ii) If P = 40, then Q = 40
If P increases by 10%, then new P = 40 + 0,1 × 40 = 40 + 4 = 44.
If P = 44, then Q = 2(44) − 40 = 88 − 40 = 48
48 − 40 8
%△Q = = = 20%.
40 40
The answers in (i) and (ii) are the same.
19. Test Exercise 2, Question 6, page 99 / page 99
(a) If Q = 0, P = 24 (vertical intercept).
67
P
3 5
3 0
2 5
1 u n it
5 u n its
2 0
1 5
1 0
Q
0 5 1 0
(b)
change in P 1
Slope = = = 0,2.
change in Q 5
From
y − y1 = m(x − x1 )
P − 24 = 0,2(Q − 0)
P = 0,2Q + 24.
(c) If P = 45, then
0,2Q + 24 = 45
0,2Q = 45 − 24
0,2Q = 21
21
Q =
0,2
Q = 105
20P = 5Q + 80
If a tax of £1,50 is introduced per unit, then
20(P + 1,50) = 5Q + 80
20P + 30 = 5Q + 80
20P = 5Q + 80 − 30
20P = 5Q + 50.
68
Let x = number of times a student attends a football match.

y = number of times a student goes to the cinema.
Then 12x + 8y = 140 (budget constraint).
If x = 0, y = 17,5
If y = 0, x = 11,67.
1 7 ,5
x
0 7 1 1 ,6 7
If the price of watching football increases to £20, then the budget constraint becomes
20x + 8y = 140 (Shown by dotted line on graph).
15.3 Self-Evaluation Exercise 3 : Unit 3
1. Progress exercise 3.1, Question 3, page 110 / page 111
x + y = 19 (1)
x − 8y = 10 (2)
(1) − (2)
y − (−8y) = 19 − 10
9y = 9
y = 1
Substitute for y in (1):
x + 1 = 19
x = 19 − 1
x = 18
Therefore x = 18, y = 1.
3y + 2x = 5 (1)
4y − x = 3 (2)
69
1 × (1)
3y + 2x = 5 (1)
2 × (2)
8y − 2x = 6 (3)
(1) + (3)
11y = 11
y = 1
Substitute for y in (2)
4 − x = 3
4 − 3 = x
1 = x
or x = 1
Therefore x = 1 and y = 1
y = 2x + 3 (1)
y = 7 − 2x (2)
Substitute for y in (2) using y in (1)
2x + 3 = 7 − 2x
2x + 2x = 7 − 3
4x = 4
x = 1
Substitute for x in (1)

y = 2 × 1 + 3
y = 2 + 3
y = 5
Therefore x = 1, y = 5
4x − y = 12 (1)
2y − 3x = 11,2 (2)
Re-writing, gives
4x − y = 12 (1)
− 3x + 2y = 11,2 (3)
To eliminate y :
2 × (1)
8x − 2y = 24 (4)
1 × (3)
− 3x + 2y = 11,2 (3)
70
(4) + (3)
5x = 35,2
35,2
x =
5
x = 7,04
Substitute for x in (2)
2y − 3(7,04) = 11,2
2y = 11,2 + 21,12
2y = 32,32
32,32
y =
2
y = 16,16
Therefore x = 7,04 and y = 16,16
5x − 2y = 15 (1)
15x − 45 = 6y (2)
Re-writing (2) and keeping (1) unchanged
5x − 2y = 15 (1)
15x − 6y = 45 (3)
Comparing (1) and (3) shows that
3 × (1) 15x − 6y = 45 (4)
which is identical to (3) .

Therefore, there is only one equation and 2 unknowns. We can only express y in terms of x.
From (1):
5x − 15 = 2y
5x − 15
= y
2
5x − 15
or y = (5)
2
For each x, there is a corresponding value of y, and there are infinitely many such combinations.

(a) Question 12
4P − 3Q = 4 (1)
1,5P + 2Q = 20 (2)
To eliminate Q:
71
2×(1)
8P − 6Q = 8 (3)
3×(2)
4,5P + 6Q = 60 (4)
(3)+(4)
12,5P = 68
12,5P 68
=
12,5 12,5
P = 5,44
Substitute for P in (2)
1,5(5,44) + 2Q = 20
8,16 + 2Q = 20
2Q = 20 − 8,16
2Q = 11,84
Q = 5,92 (dividing both sides by 2 )
Therefore P = 5,44 and Q = 5,92
(b) Question 13
5 + 2P = 6Q or 2P − 6Q = −5 (1)
5P + 8Q = 25 or 5P + 8Q = 25 (2)
72
To eliminate P :
(1)×(5)
10P − 30Q = −25 (3)
(2)×(2)
10P + 16Q = 50 (4)
(4)−(3)
46Q = 75
Q = 1,63
Q = 1,63
Substitute for Q in (1)
2P − 6(1,63) = −5
2P = 9,78 − 5
2P = 4,78
P = 2,39
Therefore P = 2,39 and Q = 1,63
(c) Question 14
x−y+z = 0 (1)
2y − 2z = 2 (2)
−x + 2y + 2z = 29 (3)
2 × (1)
2x − 2y + 2z = 0 (4)
1 × (2)
2y − 2z = 2 (2)
(4) + (2)
2x = 2
x = 1
From (2)
2y = 2 + 2z
2 2z
y = +
2 2
y = 1+z (5)
73
Substitute for x and y in (3)
−1 + 2z + 2 + 2z = 29
4z = 29 − 1
4z = 28
28
z =
4
z = 7
Substitute for z in (5):
y = 1+7
y = 8
Therefore x = 1, y = 8 and z = 7.
(d) Question 15
P1 − 3P2 = 0 (1)
5P2 − P3 = 10 (2)
P1 + P2 + P3 = 8 (3)
From (1) P1 = 3P2 (4)

From (2) 5P2 − 10 = P3 (5)
Substitute for P1 and P3 in (3)
3P2 + P2 + 5P2 − 10 = 8
9P2 = 8 + 10
9P2 = 18
P2 = 2
Substitute for P2 in (4) and (5)
P1 = 3 × 2 and P3 = 5 × 2 − 10
P1 = 6 = 10 − 10
P3 = 0
Therefore P1 = 6, P2 = 2, P3 = 0.
Demand function : Pd = 50 − 3Qd (1)

Supply function : Ps = 14 + 1,5Qs (2)
(a) At equilibrium (1) = (2) or supply = demand .
74
Therefore
14 + 1,5Q = 50 − 3Q (Removing the subscripts s and d)

1,5Q + 3Q = 50 − 14
4,5Q = 36
36
Q =
4,5
Q = 8
You can substitute for Q either in (1) or (2). The answer for price, P , will be the same either
way.
Substituting in (1)
P = 50 − 3 × 8
= 50 − 24
P = 26
At equilibrium, the price is 26 and the quantity is 8 pairs.

(b) Let P = 38. From (1)
38 = 50 − 3Qd
or 3Qd = 50 − 38
3Qd = 12
Qd = 4
From (2)
14 + 1,5Qs = 38
or 1,5Qs = 38 − 14
1,5Qs = 24
Qs = 16
Excess supply = Qs − Qd
= 16 − 4
= 14
(a) Let P = 20. From (1)
20 = 50 − 3Qd
3Qd = 50 − 20
3Qd = 30
Qd = 10
75
From (2)
14 + 1,5Qs = 20
1,5Qs = 20 − 14
1,5Qs = 6
Qs = 4
Demand Excess = Qd − Qs
= 10 − 4
= 6
(b) At a price of £20, Qs = 4.

If Q = 4, from the demand function (1), the black-market price is
P = 50 − 3 × 4
= 50 − 12
P = 38
Profit = Income −Cost

= price × quantity − cost × quantity
= 38 × 4 − 20 × 4
= 152 − 80
= 72
9. Progress Exercises 3.2, Question 7, page 117/page 118
Labour demand function : Wd = 70 − 4L (1)

Labour supply function : Ws = 10 + 2L (2)
(a) At equilibrium , (1) = (2)
10 + 2L = 70 − 4L
4L + 2L = 70 − 10
6L = 60
L = 10
Substitute for L in (2)
W = 10 + 2 × 10
= 10 + 20
W = 30
76
(b) If W = 20, then from (1)

20 = 70 − 4Ld
4Ld = 70 − 20
4Ld = 50
Ld = 12,5
and from (2)

10 + 2Ls = 20
2Ls = 20 − 10
2Ls = 10
Ls = 5
Ld − Ls = 12,5 − 5
= 7,5
(c) If W = 40, then from (1)

40 = 70 − 4Ld
4Ld = 70 − 40
4Ld = 30
Ld = 7,5
and from (2)

10 + 2Ls = 40
2Ls = 40 − 10
2Ls = 30
Ls = 15
Ls − Ld = 15 − 7,5
= 7,5

(a)
Demand function : Q = 81 − 0,05P (1)
Supply function : Q = −24 + 0,025P (2)
At equilibrium:
−24 + 0,025P = 81 − 0,05P
0,05P + 0,025P = 81 + 24
0,075P = 105
P = 1 400
77
Corresponding equilibrium quantity = 81 − 0,05(1 400)

= 81 − 70
= 11
(b) Re-arranging the equations (1) and (2): From (1)
Q = 81 − 0,05P
0,05P = 81 − Q
P = 1 620 − 20Q
From (2)
Q = −24 + 0,025P
0,025P = Q + 24
P = 40Q + 960
Therefore
Demand function : P = 1 620 − 20Q (3)
Supply function : P = 40Q + 960 (4)
Consider (3)
If Q = 0, P = 1 620
If P = 0, 0 = 1 620 − 20Q
20Q = 1 620
Q = 81
Consider (4)
If Q = 0, P = 960
If Q = 81, P = 40 × 81 + 960
= 3 240 + 960
P = 4 200
78
P
4 000 ✻ (4)
3 000
2 000
1 620
1 400
1 000
960
(3)
✲
0 10 20 30 40 50 60 70 8081 90 100 Q
11
11. Progress Exercises 3.3, Question 7, page 126 / Question 7, page 127
Demand function : P = 200 − 5Q (3)

Supply function : P = 92 + 4Q (4)
(a) At equilibrium
Demand = Supply
200 − 5Q = 92 + 4Q
200 − 92 = 4Q + 5Q
108 = 9Q
12 = Q
or Q = 12
Equilibrium price: , P = 200 − 5 × 12

= 200 − 60
P = 140
(b) (i) The new supply function is
Ps − 9 = 92 + 4Q
Ps = 92 + 9 + 4Q
Ps = 101 + 4Q
79
(ii) At new equilibrium

101 + 4Q = 200 − 5Q
4Q + 5Q = 200 − 101
9Q = 99
Q = 11
The corresponding price P = 101 + 4 × 11

= 101 + 44
P = 145
(iii) The consumer always pays the equilibrium price.
Therefore, tax paid by customer = 145 − 140 = 5,
Tax paid by the club = 9 − 5 = 4.
12. Progress Exercises 3.3, Question 9, page 127 / Question 9 page 127
Demand function : Pd = 80 − 0,4Qd (1)
Supply function : Ps = 20 + 0,4Qs (2)
(a) At equilibrium
supply = demand
20 + 0,4Q = 80 − 0,4Q
0,4Q + 0,4Q = 80 − 20
0,8Q = 60
Q = 75
The equilibrium price is
P = 20 + 0,4 × 75
= 20 + 30
P = 50
(b) (i) With subsidy, the equation of the supply function is:
Ps + 4 = 20 + 0,4Qs
Ps = 20 − 4 + 0,4Qs
Ps = 16 + 0,4Qs
(ii)
At equilibrium Pd = Ps
16 + 0,4Q = 80 − 0,4Q (removing subscripts d and s)
0,4Q + 0,4Q = 80 − 16
0,8Q = 64
Q = 80 (dividing by 0,8 both sides)
80
(iii) The consumer always pays the equilibrium price, which is
P = 80 − 0,4 × 80
= 80 − 32
P = 48.
In this case both consumer and producer receive a subsidy of 50 − 48 = 2.
13. Progress Exercises 3.3, Question 10, page 127 / Question 10, page 127
T C = 800 + 0,2Q
(a) Total revenue is given by
T R = price × quantity
= 6,6 × Q
T R = 6,6Q
To break-even T R = T C
6,6Q = 800 + 0,2Q
6,6Q − 0,2Q = 800
6,4Q = 800
Q = 125 (dividing both sides by 6,4)
Therefore, 125 clocks should be sold to break-even.

(b) If the charge per clock is P , then T R = P Q.
To break-even T R = T C
P Q = 800 + 0,2Q
If Q = 160 then
160P = 800 + 0,2 × 160

160P = 832
P = 5,20 (dividing by 160 both sides)
Therefore the new equation (on total revenue is T R = 5,2Q.
81
Amount
1 600 ✻
1 400
T R = 6,6Q
1 200
T R = 5,2Q
1 000
800 TC
600
400
200
✲
0 20 40 60 80 100 120 140 160 180 200 Q
(c) 125
Demand function : P = 58 − 0,2Q

Supply function : P = 4 + 0,1Q
(a) At equilibrium
4 + 0,1Q = 58 − 0,2Q
0,2Q + 0,1Q = 58 − 4
0,3Q = 54
Q = 180 (dividing by 0,3 on both sides)
Equilibrium price is
P = 58 − 0,2 × 180
= 58 − 36
P = 22
82
P
✻
58 A
P = 4 + 0,1Q
33
CS
E
22 B
PS
P = 58 − 0,2Q
4 C
D ✲
0 180 290 Q
Where
CS = consumer surplus
PS = producer surplus
(b) (i) At equilibrium, consumers pay 180 × 22 = 3 960

(ii) Consumers are willing to pay for bus journeys up to equilibrium the amount equivalent
to the area of the trapezium AODE.
1
Amount = (sum of lengths ) × width
2
= 0,5(58 + 22) × 180
= 7 200
(iii)
Consumer Surplus CS = Area of triangle ABE
1
= (58 − 22) × 180
2
= 0,5 × 36 × 180
= 3 240
Note:
7 200 − 3 960 = 3 240
Therefore, CS = (ii)− (i).
(c) (i) At equilibrium, producer receives 22 × 180 = 3 960
(ii) Amount the producer is willing to accept for bus journeys up to equilibrium is given by
the area under the supply function, which is the trapezium CODE.
Amount = 0,5(4 + 22) × 180
= 0,5 × 26 × 180
= 2 340
83
(iii) The producer surplus is given by
P S = area of triangle BCE

= 0,5(22 − 4) × 180
= 0,5 × 18 × 180
P S = 1 620
Note:
3 960 − 2 340 = 1 620
Therefore, P S = (i)−(ii).
Demand function : Q = 50 − 0,1P (1)

Supply function : Q = −10 + 0,1P (2)
(a) At equilibrium
−10 + 0,1P = 50 − 0,1P

0,1P + 0,1P = 50 + 10
0,2P = 60
P = 300 (Dividing by 0,2 both sides )
Equilibrium quantity is given by
Q = 50 − 0,1 × 300
Q = 50 − 30
Q = 20
P
✻
700
600
500
✒
400 Q = −10 + 0,1P
CS
300
PS
200
Q = 50 − 0,1P
100
✲
0 10 20 30 40 50 60 Q
84
(b)    
What the consumer What the consumer
Consumer surplus =  is willing to pay − pays at 
up to equilibrium point equilibrium
CS = [0,5(500 + 300) × 20] − 300 × 20

= 8 000 − 6 000
CS = 2 000
(c)    
What the producer What the producer is
Producer surplus =  receives at  −  willing to accept up to 
equilibrium equilibrium point
P S = [300 × 20] − [0,5(100 + 300) × 20]

= 6 000 − 4 000
= 2 000
(d)
Consumer Producer
Total surplus = +
surplus surplus
T S = 2 000 + 2 000
T S = 4 000
(a) Question 1
(i)
3x + 2y ≥ 15 (1)
6x + 9y ≥ 36 (2)
x≥0 y≥0
Consider (1): If x = 0, y = 7,5 and if y = 0, x = 5
Consider (2): If x = 0, y = 4 and if y = 0, x = 6
Since (=) is included for both inequalities, the lines are solid.
85
y
✻
7,5 A
4 A
✯
1,2
B
✯
C
0 4,2 5 6 x
A(0 ; 7,5) B(4,2 ; 1,2) C(6 ; 0)
(ii)
6x + 2y ≤ 30 (1)
2x + 6y ≤ 26 (2)
x≥0 y≥0
Consider (1): 6x + 2y = 30
If x = 0, y = 15 and if y = 0, x = 5
Consider (2) : 2x + 6y = 26
If x = 0, y = 4 13 and if y = 0, x = 13
Since (=) is included in (1) and (2), the lines are solid.
y
✻
15
✙
4 13
A
✙
C ✲
0 4 5 13 x
A(0; 4 13 ) B(4; 3) C(5; 0)
86
(b) Question 3
(i)
4y + 5x ≤ 20 (1)
x ≥ 0, y ≥ 0
Consider (1)
If x = 0, y = 5
If = 0, x = 4
(=) is included, line is solid
y ✻
5 A
B ✲
0 4 x
A(0; 5), B(4; 0), origin
(ii)
8y + 15x ≤ 48 (2)
x = 0, y ≥ 0
Consider (2): If x = 0, y = 6
If y = 0, x = 3 15
(=) is included in the inequality, hence line is solid.

y ✻
6 A
B ✲
0 1 2 3 4 x
87
A(0; 6), B(3 15 ; 0), origin

(iii)
3y + 7x ≤ 21 (3)
x ≥ 0, y ≥ 0
Consider (3): If y = 0, x = 3 and if x = 0, y = 7.
(=) is included in the inequality, hence line is solid.

y ✻
7 A
B ✲
0 1 2 3 x
(a) Question 6
W = 3x + 2y
subject to
4y + 5x ≤ 20 (1)
8y + 15x ≤ 48 (2)
3y + 7x ≤ 21 (3)
x ≥ 0, y ≥ 0
The lines have been determined in the previous question. They are drawn on the same graph.
88
✻
y
7
3
6
2
5A
1
3 B
C
2
✲
0 x
1 2 3 4 5
Point Value of W
A:x = 0; y = 5 W = 3 × 0 + 5 × 2 = 10
B:x = 1,6; y = 3 W = 3 × 1,6 + 2 × 3 = 10,8 ← maximum
C:x = 2,18; y = 1,91 W = 3 × 2,18 + 2 × 1,91 = 10,36
D:x = 3; y = 0 W = 3×3+2×0 = 9
origin : x = 0, y = 0 W = 3×0+2×0 = 0
Maximum W is at B where x = 1,6 and y = 3.

(b) Question 7
C = 3x + 2y
subject to
4y + 5x ≤ 20 (1)
8y + 15x ≤ 48 (2)
3y + 7x ≤ 21 (3)
x≥0 y≥0
The lines have been drawn in the previous question. They are drawn here on the same diagram.
89
✻
y
7
3
6
2
5A
1
3 B
C
2
✲
0 x
1 2 3 4 5
Point Value of C
A:x = 0; y = 5 C = 3 × 0 + 5 × 2 = 10
B:x = 1,6; y = 3 C = 3 × 1,6 + 2 × 3 = 10,8
C:x = 2,18; y = 1,91 C = 3 × 2,18 + 2 × 1,91 = 10,36
D:x = 3; y = 0 C =3×3+2×0 =9
origin : x = 0, y = 0 C = 3 × 0 + 2 × 0 = 0 ← minimum
Minimum C is at the origin.
Let
x = number of Machine A used

y = number of Machine B used
(a) • Consider cost per day:

6x + 3y ≤ 360 (1)
• Available operators:
2x + 4y ≤ 280 (2)
• Floor area (m2 ) :
2x + 2y ≤ 160 (3)
• Profit:
P = 20x + 30y
90
(b)
160
140
120
1
100
80
60 B
40 C
2
20
3
D
0 20 40 60 80 100 120 140 160 x
Maximum profit occurs at B. Therefore 20 Machine A and 60 Machine B should be used to

maximise profit.
91

(i) Question 1
x2 − 6x + 5 = 0
x2 − 5x − x + 5 = 0
x(x − 5) − 1(x − 5) = 0
(x − 5)(x − 1) = 0
Either x − 5 = 0 or x − 1 = 0
x = 5 or x = 1
(ii) Question 2
2Q2 − 7Q + 5 = 0
a = 2, b = −7; c = 5
From the quadratic formula
√
−b ± b2 − 4ac
Q =
2a p
−(−7) ± (−7)2 − 4(2)(5)
=
2×2
√
7 ± 49 − 40
=
√4
7± 9
=
4
7±3
=
4
10 4
= or
4 4
Q = 2,5 or 1
(iii) Question 3
−Q2 + 6Q − 5 = 0
a = −1, b = 6, c = −5
√
−b ± b2 − 4ac
Q =
p2a
−6 ± (6)2 − 4(−1)(−5)
=
2 × −1
√
−6 ± 36 − 20
=
−2
√
−6 ± 16
=
−2
−6 ± 4
=
−2
−2 −10
= or
−2 −2
= 1 or 5
92
(iv) Question 4
Q2 + 6Q + 5 = 0
Q2 + 5Q + Q + 5 = 0
Q(Q + 5) + 1(Q + 5) = 0
(Q + 5)(Q + 1) = 0
Either Q + 5 = 0 or Q + 1 = 0
Q = −5 or Q = −1.
(v) Question 5
P2 − 7 = 0
P2 = 7
√
P = ± 7
√ √
Therefore P = 7 = 2,65 or P = − 7 = −2,65
(vi) Question 6
Q2 − 6Q + 9 = 0
Q2 − 3Q − 3Q + 9 = 0
Q(Q − 3) − 3(Q − 3) = 0
(Q − 3)(Q − 3) = 0
Q − 3 = 0 or Q − 3 = 0
Q=3
(vii) Question 7
Q2 − 6Q − 9 = 0
a = 1, b = −6, c = −9
p
−(−6) ± (−6)2 − 4(1)(−9)
Q =
2×1
√
6 ± 36 + 36
=
√2
6 ± 72
=
2
6 ± 8,49
=
2
= 7,245 or − 1,245
(viii) Question 8
Q2 = 6Q
Q2 − 6Q = 0
Q(Q − 6) = 0
Either Q = 0 or Q − 6 = 0 implying that Q = 6.
93
(ix) Question 9
x2 − 6x = 7 + 3x
x2 − 9x − 7 = 0
a = 1; b = −9; c = −7
p
−(−9) ± (−9)2 − 4(1)(−7)
x =
2(1)
√
9 ± 81 + 28
=
2
√
9 ± 109
=
2
9 ± 10,44
=
2
= 9,72 or − 0,72
(x) Question 10
P 2 + 12 = 3
P 2 = 3 − 12
P 2 = −9
√ √
Therefore P = −9 or P = − −9.
These are complex numbers beyond the scope of this module.
(xi) Question 11
P + 10 = 11P 2 − P + 1
0 = 11P 2 − P + 1 − P − 10
0 = 11P 2 − 2P − 9
p
−(−2) ± (−2)2 − 4(11)(−9)
P =
2 × 11
√
2 ± 400
=
22
2 ± 20
=
22
22 18
= or −
22 22
9
= 1 or −
11
(xii) Question 12
Q2 − 8Q = Q2 − 2
Q2 − 8Q − Q2 = −2
−8Q = −2
1
Q =
4
94
(xiii) Question 13
12 = P 2 − 2P + 12
0 = P 2 − 2P + 12 − 12
0 = P 2 − 2P
0 = P (P − 2)
Either P = 0 or P −2=0
P =0 or P =2
(xiv) Question 14
5+P = 4P 2 − 4 + P
0 = 4P 2 − 4 + P − 5 − P
0 = 4P 2 − 9
9 = 4P 2
9
= P2
4 r r
9 9
Either P = or P = −
4 4
3 3
P = or P =−
2 2

x −2 −1 0 1 2
y = x2 4 1 0 1 4
y = −3x2 −12 −3 0 −3 −12
y = 0,5x2 2 0,5 0 0,5 2
95
y ✻
× 4 ×y = x2
× 2 × y = 0,5x2
× ×
1
× ×
✲
−3 −2 −1 1 2 3 x
−1
−2
y = −3x2
× −3 ×
−4
−5
−6
−7
−8
−9
−10
−11
× −12 ×
❄
96

(a) P = −Q2 (b) P = −Q2 + 4 (c) P = −(Q − 3)2 + 4
Q −3 −2 −1 0 1 2 3 4 5 6
(a) P −9 −4 −1 0 −1 −4 −9 −16 −25 −36
(i)
(b) P −5 0 3 4 3 0 −5 −12 −21 −32
(c) P −32 −21 −12 −5 0 3 4 3 0 −5
(ii)
P ✻
5
4× ×
P = −Q2 + 4 × 3 × × ×
P = −(Q − 3)2 + 4
2
✛ × × × × × ✲
−3 −2 −1 1 2 3 4 5 Q
× −1 ×
−2
−3
P = −Q2
× −4 ×
× −5× × ×
−6
−7
−8
× −9 ×
−10
97
(iii) • Graph (b) is a shift of graph (a) 4 steps up.

• Graph (c) is a shift of graph (b) 3 steps to the right.
P = 12 − Q
(a)
Total revenue = price × quantity

TR = PQ
= (12 − Q)Q (substituting for P )
T R = 12Q − Q2
(b)
TR
36
Q
0 6 12
(c)
12Q − Q2 = 0
Q(12 − Q) = 0 (factoring Q out)
Either Q = 0 or 12 − Q = 0
Q = 0 or 12 = Q.
Q = 0 or Q = 12.
Let
T R = Q(a + bQ)
= aQ + bQ2
If Q = 40 then 40a + 1 600b = 0 (1)
If Q = 20 then 20a + 400b = 1 000 (2)
98
TR
1000
Q
0 20 40
2 × (2) − (1) : 800b − 1 600b = 2 000

−800b = 2 000
b = −2,5
Substitute for b in (1)
40a − 4 000 = 0
40a = 4 000
a = 100
Therefore
T R = 100Q − 2,5Q2 .
Demand function: P = 100 − 2Q
(a)
Total Revenue = price × quantity

TR = PQ
= (100 − 2Q)Q
T R = 100Q − 2Q2
If Q = 10, T R = 100 × 10 − 2(10)2

= 1 000 − 200
= 800
(b)
If P = 100 − 2Q, then 2Q = 100 − P

Q = 50 − 0,5P
99
Total Revenue = price × quantity

TR = P × Q
= P (50 − 0,5P )
T R = 50P − 0,5P 2
If P = 10, then
T R = 50 × 10 − 0,5 × 102
= 500 − 50
T R = 450
P = −4Q3 + 2Q2
Q P
−0,4 P = −4 × (−0,4)3 + 2 × (−0,4)2 = 0,576
−0,2 P = −4 × (−0,2)3 + 2 × (−0,2)2 = 0,112
0 P = −4 × (0)3 + 2 × (0)2 = 0
0,2 P = −4 × (0,2)3 + 2 × (0,2)2 = 0,048
0,4 P = −4 × (0,4)3 + 2 × (0,4)2 = 0,064
0,6 P = −4 × (0,6)3 + 2 × (0,6)2 = −0,144
P
0,12
0,10
0,08
0,06
0,04
0,02
-0,5 -0,4 -0,3 -0,2 -0,1 0 0,1 0,2 0,3 0,4 0,5 0,6
-0,02
-0,04
-0,06
-0,08
-0,10
-0,12
0,14
Roots : Q = 0 and Q = 0,5

Turning Points Maximum P : Q ≈ 0,3 and P ≈ 0,07
Minimum P : Q = 0 and P =0
100
T C = 0,5Q3 − 15Q2 + 175Q + 1 000
Q −10 0 10 20 30
TC −2 750 1 000 1 750 2 500 6 250
TC
6000
5000
4000
3000
2000
1000
Q
-10 -5 0 10 20 30 40
-1000
-2000
-3000
Roots : Q ≈ −4.
Turning Points : No maximum and minimum turning points.
(a) 62 = 6 × 6 = 36
(b) 33 = 3 × 3 × 3 = 27
(c) 51 = 5
(d) 53 = 5 × 5 × 5 = 125
(e) (−3)2 = −3 × −3 = 9
(f) (−4)2 = −4 × −4 = 16
(g) 250 = 1
1 1
(h) 5−1 = 1 =
5 5
1 1 1
(i) 6−2 = 2 = =
6 6×6 36
1 1 1
(j) 5−3 = 3 = =
5 5×5×5 125
101
(k) (2,5)0,5 = 1,58113883 ≈ 1,58 to 2 decimal places

(l) (1,5)−5 = 0,131687242 ≈ 0,132 to 3 decimal places

4(0,6)K 0,4 L−0,4
L 4(0,6)K 0,4 L−0,4 K
= ×
4(0,4)K −0,6 L0,6

4(0,4)K −0,6 L 0,6
L
K
4(0,6)K 0,4+1 L−0,4

=
4(0,4)K −0,6 L1+0,6
0,6K 1,4 L−0,4 10
= ×
0,4K −0,6 L1,6 10
6K 1,4 L−0,4
= divided by 2 above and below the line
4K −0,6 L1,6
3K 1,4+0,6
=
2L1,6+0,4
3K 2
=
2L2
3 K 2

=
2 L
e2x+3
= e2x+3−(5x−3)
e5x−3
= e2x+3−5x+3
= e6−3x

1
2x = √
16
1
=
4
1
=
22
= 2−2 Equating powers,
x = −2
102
2x
= 2
4
2x
= 21
22
2x−2 = 21
x − 2 = 1 (equating powers)
x = 1+2
x = 3
3Q+2 = 9
3Q+2 = 32 (writing 9 as an index number)
Q + 2 = 2 equating powers
Q = 2−2
Q = 0

1
= 8
K
1 = 8K (multiply by K both sides)
1
= K (dividing by 8 both sides)
8
1
or K = = 0,125
8
4
= 8
K 0,5
K 0,5 1
= (inverting both sides)
4 8
4
K 0,5 =
8
K 0,5 = 0,5
K = (0,5)2 (squaring both sides)
K = 0,25
103
4
+ L = −4
L
4 + L2 = −4L (multiplying both sides by L )
L2 + 4L + 4 = 0 (forming a quadratic equation )
(L + 2)(L + 2) = 0 (factorising )
(L + 2)2 = 0
L + 2 = 0 (finding square-root of both sides )
L = −2 (Solving for L )
S = 200 000(1 − e−0,05t )
(a) If t = 1 week,
S = 200 000(1 − e−0,05 )

= 200 000 × (1 − 0,951229424)
S = 9 754, 115 098
S ≈ 9 754
(b)
t 5 20 35 45 50 52
s 44 240 126 424 165 245 178 920 183 583 185 145
S
200 000
t
0
104
6 000
P (t) =
1 + 29e−0,4t
(a)
t P (t)
6 000
0 P = 1+29 = 6 30
000
= 200
6 000
4 P 1+29e−1,6 = 875,2736479 ≈ 875
6 000
10 P = 1+29e −4 = 3918,614229 ≈ 3919
(b)
6 000
200
t
0
(c)
If P
= 1 000, then
6 000
1 000 =
1 + 29e−0,4t
−0,4t
1 + 29e = 6
29e−0,4t = 5
5
e−0,4t =
29
−0,4t 5
ln(e ) = ln
29

5
−0,4tlne = ln
29
5
ln 29
t =
−0,4
t = 4,394644794
t ≈ 4,39 years
105
If P = 3 000, then
6 000
1 + 29e−0,4t =
3 000
−0,4t
1 + 29e = 2
−0,4t 1
e =
29
1
−0,4tlne = ln
29
−ln(29)
t =
−0,4
t = 8,418239575
t ≈ 8,42 years
If P = 4 000, then
6 000
1 + 29e−0,4t =
4 000
29e−0,4t = 0,5
1
e−0,4t =
58
−0,4tlne = −ln 58
−ln 58
t =
0,4
t = 10,15110753
t ≈ 10,15 years
500
Demand function : Pd = ; Supply function : Ps = 16 + 2Q
Q+1
106
(a) At equilibrium
Ps = Pd
500
16 + 2Q =
Q+1
(16 + 2Q)(Q + 1) = 500 (Cross-multiplying)
16Q + 16 + 2Q2 + 2Q − 500 = 0
2Q2 + 18Q − 484 = 0
p
−18 ± 182 − 4(2)(−484)
Q =
2×2
√
−18 ± 324 + 3 872
=
4
−18 ± 64,777
Q =
4
−82,777 +46,777
Q = or
4 4
Q = −20,694 or + 11,694
Therefore equilibrium quantity is Q = 11,694 and equilibrium price is
P = 16 + 2(11,694)
= 16 + 23,388
= 39,388
P ≈ 39,39.
120
400
90
80
70
60
P s =16 + 2Q
50
39,39 40
30
20 P d = 500
Q+1
10
0 Q
4 8 12 16 20
11,694
107
(a) Tabulate the values,

x −2,5 −2 −1,5 −1 −0,5 0 0,5 1 1,5 2 2,5
y = x2 6,25 4 2,25 1 0,25 0 0,25 1 2,25 4 6,25
and plot the points on a coordinate system. Then connect these points and continue the curve
(solid line) to the left and right in order to indicate that we are attempting to draw the entire
y = x2 .
(b) The tangents (dashed lines) can be estimated using a ruler. Recall that the tangent line at a point
is that line which intersects the curve only at that specific point. Clearly the tangent line at (0; 0)
is horizontal and therefore has slope 0. The slopes of the other two tangent lines are estimated
by using ∆x and ∆y for each line as below. Your ∆x and ∆y for each line will depend on how
∆y
long you drew the tangent but the ratio ∆x does not depend on the length of the line and will be
equal to (except for measurement error) the derivative computed in the next part. Note that it is
important to use the correct signs, so if ∆x is taken to be positive in each case (imagining that
one moves from left to right on the tangent) then ∆y has to be negative for the tangent sloping
down (as we go from left to right) and positive for the tangent with an upward slope.
10
7
b b
6
b b
4
3 ∆y
∆y b b
2
b b
1
b b
b
−3 −2 −1 1 2 3
∆x−1
∆x
dy x −1,5 0 2
(c) y ′ = = 2x so .
dx y′ −3 0 4
108
2. Progress Exercises 6.1, Question 3(c), page 267 / page 269

1
y = 10 + 5x + 2 = 10 + 5x + x−2 and therefore
x
dy 1
= 5 + (−2)x−3 = 5 − 2 3 .
dx x
1
Note: we write 3 instead of x−3 since the question stipulated we give the answer using positive
x
indices.
3. Progress Exercises 6.1, Question 3(e), page 267 / page 269

Since P = 13 Q3 + 70Q − 15Q2 ,
dP 1
= (3Q2 ) + 70 − 15(2Q) = Q2 − 30Q + 70.
dQ 3
(a) Recall that

120 − Q 1
TR = Q · P = Q = 40Q − Q2
3 3
where we have used the demand equation in the form
120 − Q
P =
3
to obtain T R as a function of Q. Then
d(T R) 1 2
MR = = 40 − (2Q) = 40 − Q
dQ 3 3
and
TR 120 − Q
AR = = .
Q 3
Therefore, when Q = 15 :
TR: T R = 40(15) − 13 (152 ) = 325
The total revenue from selling 15 items is 325.
MR: M R = 40 − 23 (15) = 30
The marginal revenue from selling an addition item if 15 have already been sold, is 30.
AR: AR = 120−15
3 = 35
The average revenue per item (i.e. the price per item) when 15 items are sold, is 35.
120 − Q
(b) AR = 0 where = 0 which is simply where Q = 120. If Q = 120 then M R =
3
2
40 − 3 (120) = −40. It makes no sense to sell this quantity as marginal revenue is negative.
109
(a) Recall that

T R = Q · P = Q(125 − Q1,5 ) = 125Q − Q2,5
where we have used the demand equation in the form given. Then
d(T R) TR
MR = = 125 − 2,5Q1,5 and AR = = 125 − Q1,5 .
dQ Q
The slope of the MR curve is not twice the slope of the AR curce, except possibly at certain
specific values of Q.
(b) Therefore, when Q = 10 :
TR: T R = 125(10) − (102,5 ) ≈ 933,72
The total revenue from selling 10 items is approximately 933,72.
MR: M R = 125 − 2,5(10)1,5 ≈ 45,94
The marginal revenue from selling an addition item if 10 have already been sold, is approxi-
mately 45,84.
AR: AR = 125 − 101,5 ≈ 93,38
The average revenue per item (i.e. the price per item) when 10 items are sold, is approximately
93,38.
And when Q = 25 :
TR: T R = 125(25) − (252,5 ) = 0
The total revenue from selling 25 items is 0.
MR: M R = 125 − 2,5(25)1,5 = −187,5
The marginal revenue from selling an addition item if 25 have already been sold, is −187,5.
AR: AR = 125 − 251,5 = 0
The average revenue per item (i.e. the price per item) when 25 items are sold, is 0.
(c) M R = 0 where 125 − 2,5Q1,5 = 0, i.e. where
125
Q1,5 = = 50
2,5
so 1 2
Q = 50 1,5 = 50 3 ≈ 13,572.
AR = 0 where
125 − Q1,5 = 0
i.e. where
1 1 2
2

Q = 125 1,5 = 125 3 = 125 3 = 25.
The sale of further units starts to reduce total revenue where the marginal revenue becomes
negative, which will be from 14 units on.

dy
= 2x − 6 so the only turning point is at x = 3.
dx
110

dy
= 3x2 − 6x − 9 so the turning points are where 3x2 − 6x − 9 = 0 which can be written as
dx
(3x − 9)(x + 1) = 0
with solutions x = 3 or x = −1 which indicate the turning points. Note: you may also have used the
quadratic formula to solve the quadratic equation.
d(T C) 1 1 1
= 144 − Q−2 = 144 − 2 which is zero when Q = 12 or when Q = − 12 , giving the two turning
dQ Q
points of the function TC.
dy
= 4x3 − 4x so we try to solve 4x3 − 4x = 0. Fortunately 4x3 − 4x = 4x(x2 − 1) and therefore the
dx
turning points are at x = 0, x = 1 and x = −1.
(a) T R = Q · P = Q(240 − 10Q) = 240Q − 10Q2
π = T R − T C = 240Q − 10Q2 − (120 + 8Q) = −120 + 232Q − 10Q2
dπ
(b) (i) = 232 − 20Q and therefore profit is maximised for Q = 11,6.
dQ
d(T R)
(ii) = 240 − 20Q and therefore TR is maximised for Q = 12.
dQ
d(T R) d(T C)
(c) M R = = 240−20Q and M C = = 8. As long as M R > M C profit can be increased
dQ dQ
by producing more units. Therefore the maximum profit has been reached when M R = M C.
(d)
(i)
TR
1250
1000
750
500
250
TC
5 10 15 20 25
We estimate the break-even point from the graph to be below Q = 1 (that is, where T R =
T C). This can be confirmed algebraically by noting that the profit function
π = T R − T C = −120 + 232Q − 10Q2
111
determined above, is negative for Q = 0 but is positive for Q = 1. Since we are—naturally—

dealing with integer numbers of T-shirts, it is not necessary to determine the solution
Q ≈ 0,52932
using a formula. Of course there is a second break-even point (where the cost starts outstrip-
ping the revenue—for ever) which can be computed using the quadratic formula,
Q ≈ 22,671.
(ii)
250
225
200 MR
175
150
125
100
75
50
25
MC
5 10 15 20 25
Where M R <
M C it is no longer worth manufacturing one more item. Therefore the intersection of the
lines, where M R = M C, is at the production level Q where the profit is maximised.

8000
(a) Given that AC = 15 + and AR = 25 we can compute
Q
T R = Q · AR = 25Q T C = AC · Q = 15Q + 8000
d(T R) d(T C)
MR = = 25 and MC = = 15.
dQ dQ
(b) Break-even point is reached where T R = T C, i.e.
25Q = 15Q + 8000
which is where Q = 800.
112
(c) The profit function is π = T R − T C = 25Q − (15Q + 8000) = 10Q − 8000 which is a straight line
and therefore has no maximum. We can check this using differentiation by observing that
dπ d(T R)
= 10Q and = 25
dQ dQ
neither of which can be zero. This is obvious since M R > M C for all values of Q.
(d)
113
T C = 608 580 + 120Q
(a)
I II
P = 2 374 P = 5 504 − 0,8Q
T R = P · Q = 2 374Q T R = P · Q = (5 504 − 0,8Q)Q = 5 504Q − 0,8Q2
d(T R) d(T R)
MR = = 2 374 MR = = 5 504 − 1,6Q
dQ dQ
d(T C) d(T C)
MC = = 120 MC = = 120
dQ dQ
π = TR − TC π = TR − TC
= 2 374Q − (608 580 + 120Q) = 5 504Q − 0,8Q2 − (608 580 + 120Q)
= 2 254Q − 608 580 = −0,8Q2 + 5 384Q − 608 580
(i) I: solve 2 374 = 120 which has no solution, so there is no maximum or minimum profit. It is clear
from the profit function that the profit can increase indefinitely if Q is increasing.
II: solve 5 504 − 1,6Q = 120 to find that Q = 3 365.
dπ
(ii) I: = 2 254 which is never zero, so there is no maximum or minimum profit.
dQ
dπ
II: = −1,6Q + 5384 which is zero where Q = 3 365.
dQ
(b) When Q = 3 365 in II, π = −0,8(3 365)2 + 5 384(3 365) − 608 580 = 8 450 000.
When Q = 3 365 in I, π = 2 254(3 365) − 608 580 = 6 976 130.
(c)
The break-even point appears to be around Q = 100 for II and around Q = 275 for I. The total revenue
is the same for both schemes for quite small Q.
114
(d)
We can read off the break-even points somewhat more easily from this graph. Scheme II gives a higher
profit for the range of values of Q plotted but since the profit function for II is quadratic, it has a maximum
and at some point the profit in II will start falling. For very large values of Q, then, the scheme I will
result in a higher profit.

dQ P
(a) εd = · in the general case but for small discrete changes we alse use
dP Q
% change in Q
εd =
% change in P
and therefore
% change in Q = εd (% change in P )
and
% change in Q = −0,8 (% change in P )
if εd = −0,8 is constant. In other words, if the price increases by 5%, the quantitty demanded
will fall by 4%.
115
14. Progress Exercises 6.17, Question 2, page 352/ page 355
(a)
Demand function εd (P ) εd (Q)

1 dQ 1 P 80 − 2Q Q − 40
P = 80 − 2Q Q = 80 − P · PQ = − · =
2 dP 2 1 80 − 2Q − 160 40 + Q
80 − P
2
P
=
P − 160
1
dQ P P 30 − Q Q − 120
Q = 120 − 4P P = 30 − 14 Q

= −4 · P/(120 − 4P ) = 4 =
dP Q P − 30 1 Q
30 − Q − 30
4
P = 432 (Q independent of P ) undefined undefined

a 1 dQ P 1 P P a − bQ bQ − a
P = a − bQ Q= − P · =− · = =
b b dP Q b a 1 P −a a − bQ − a bQ
− P
b b
(b)
Demand function εd (P = 50) εd (Q = 30)

1 50 30−40
P = 80 − 2Q Q = 80 − P ≈ −0,45455 40+30
≈ −0,14286
2 50 − 160

1 50 30 − 120
Q = 120 − 4P P = 30 − Q = 2,5 = −3
4 50 − 30 30
P = 432 (Q independent of P ) undefined undefined

a 1 50 30b − a
P = a − bQ Q= − P
b b 50 − a 30b
(a) Rewrite the demand equation first, as P = 50 − 12 Q.

1 1
T R = P · Q = 50 − Q · Q = 50Q − Q2
2 2
d
MR = (T R) = 50 − Q
dQ
1 1
AR = (T R) = 50 − Q
Q 2
(b) Revenue is maximised where M R = 0, i.e. where Q = 50 with corresponding price P = 50 −

1
2 (50) = 25.
dQ P P
(c) (i) εd = · P Q = −2 · =
dP 100 − 2P P − 50
50 − 12 Q Q − 100
(ii) εd = 1 =
50 − 2 Q − 50 Q
116
(d) TR is a maximum where M R = 0 anyway, i.e. where Q = 50. For Q = 50

50 − 100
εd = = −1.
50
1 4,5 1 4 1 2 2 1 1
Z
(x + x3 + x3,5 ) dx = x + x + x + c = x4,5 + x4 + x2 + c
4,5 4 2 9 4 2
1 6 9
Z Z Z
x(x − 3) dx = ((x − 6x + 9) dx = (x3 − 6x2 + 9x)dx = x4 − x3 + x2 + c
2 2
4 3 2
= 14 x4 − 2x3 + 92 x2 + c

1 1
Z Z
x 1 + 2 dx = (x2 + 1)dx = x3 + x + c
2
x 3
20 0,5 3 1
Z Z
Q(20 − 0,5Q) dQ = (20Q − 0,5Q2 ) dQ = Q2 − Q + c = 10Q2 − Q3 + c
2 3 6

x=3 x=3
1 2 1 2 1 2 9 1
Z

(x + 5) dx = x + 5x
= 3 + 5(3) − 1 + 5(1) = + 15 − + 5 = 14
x=1 2 x=1 2 2 2 2

x=2 x=2
1 3
Z
2

(x − 3) dx = x − 3x
x=−2 3 x=−2

1 3 1 3
= 2 − 3(2) − (−2) − 3(−2)
3 3

8 8 16 20 2
= −6− − +6 = − 12 = − = −6
3 3 3 3 3
117
(a)
10
−2−1 1 2 3 4 5 6 7 8 9 10 11 12 13
(b) The net area is given by

Q=10
1 2 Q=10

1
Z
(10 − Q)dQ = 10Q − Q = 100 − (100) − 0 = 50.
Q=0 2 Q=0 2
(c) The area below the horizontal axis is 0 and the area above the axis is 50.
(a)
10
−1 1 2 3 4 5 6 7 8 9 10111213
−10
−20
−30
−40
−50
−60
−70
−80
118
Note: the graph of the function is the solid line. The vertical axis is not to the same scale as the
horizontal axis.
R Q=10 Q=10
(b) The net area is given by Q=0 (16 − Q2 )dQ = 16Q − 13 Q3 Q=0 = 16(10) − 13 (103 ) − 0 =
160 − 1000 520
3 = − 3 = −173 3
1
(c) The area above the horizontal axis is given by

Q=4 Q=4
1 1 64 128 2
Z
(16 − Q2 )dQ = 16Q − Q3 = 16(4) − (43 ) − 0 = 64 −

= = 42
Q=0 3 Q=0 3 3 3 3
and the area below the horizontal axis is given by

Q=10 Q=10
1 1 1
Z
(16 − Q2 )dQ = 16Q − Q3 = 16(10) − (103 ) − 16(4) − (43 )

Q=4 3 Q=4 3 3
1 2
= −173 − 42
3 3
= −216.
The negative sign simply denotes that the area lies below the horizontal axis. Properly speaking,
an area is always a positive quantity.
c

UNISA 2015
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Tutorial Letter 101/3/2015

1 Introduction and welcome 4

4 Communication with the University 4

5 Student support system 5

7 Syllabus for the module 7

8 Relevant sections of the text book 7

9 Learning outcomes and assessment criteria 9

12.3.1 How to attempt the evaluation exercises . . . . . . . . . . . . . . . . . . . . . . . . . . 20

15 Solutions: Self-evaluation exercises 40

1 Introduction and welcome

It is a pleasure to welcome you to this module: QUANTITATIVE MODELLING.

4 Communication with the University

5 Student support system

5.1 Study groups

5.3 Tutor classes

5.4 Online services

– Go to myUnisa at http://my.unisa.ac.za/ and click on the “Claim myLife email” link.

Your study material consists of the following:

Teresa Bradley and Paul Patton:

2. This tutorial letter, Tutorial Letter 101, 2015

• Tutorial letter 101, 2015

• Tutorial letter 301, 2015

7 Syllabus for the module

UNIT TOPIC CHAPTERS

The textbook forms the basis of your study material.

8 Relevant sections of the text book

Study Unit Chapter in Sections in Progress Exercise in

9 Learning outcomes and assessment criteria

1. Explain the concept of a function.

2. Explain the different characteristics of a linear function.

1. Solve a system of linear equations algebraically and graphically.

3. Determine the consumer surplus and producer surplus.

4. Graphically solve a system of linear inequalities with two variables.

6. Solve a linear programming problem graphically.

1. Explain the different characteristics of a quadratic function.

1. Define and determine the slope of a tangent line to a curve.

11.1 Study time

11.2 Study method

We suggest that you approach the study material as follows:

11.3 Study plan

11.3.1 Study unit 1: Preliminaries

• Study material sources

– 1.2 Arithmetic Operations

1. Progress Exercise 1.1, Question 1, page 7 / page 10

16. Progress Exercise 1.3, Question 4, page 20 / page 23

11.3.2 Study unit 2: Linear functions

• Study material sources

1. Progress Exercise 2.1, Question 2, page 43 / page 43

13. Progress Exercise 2.4, Question 4, page 75 / page 75

11.3.3 Study unit 3: Linear algebra

• Study material sources

1. Progress Exercise 3.1, Question 3, page 110 / page 111

5. Progress Exercise 3.1, Question 10, page 110 / page 111

11.3.4 Study unit 4: Non-linear functions

• Study material sources

– 4.1 Quadratic, cubic and other polynomial functions

1. Progress Exercise 4.1, Question 1, page 152 / page 152

2. Progress Exercise 4.1, Question 4, page 152 / page 152