MATHEMATICAL ECONOMICS (ECO406)

ASSIGNMENT NO. 01
M Umer Contact # 03005181376

Question No. 1
Assume that total cost C of a firm for daily output Q is given by the function,
C= 100+20Q and maximum daily productivity capacity of the firm is 300 units of
the output. Find the domain and the range of the function.
DOMAIN:
0<=Q<=300
RANGE:
Total cast at zero point will be:
C=100+20(0)
C=100+0
C=100
Total cast at 300 output will be:
C=100+20(300)
C=100+6000
C=6100
100<=C<=6100
Question No. 2
Obtain the linear equation of demand or supply from the following:
P 10 12
Q 12 10
Linear Demand Function
A demand equation or demand function expresses demand q (the number of items demanded)
as a function of the unit price p (the price per item). A linear demand function has the form
q = mp + b

For P = 10
Qd = p + 2
Q = 10*1 + 2
Q = 12

FOR P = 12

Qd = p -2
Q = 12*1 + (-2)
Q = 12-2
Q = 10

Question No. 3
Which of the following are identities and which are equations, and why?
i. (2x+3y)2=12(xy+3)
ii. (x+3)2 =x2+6x+9
An identity is true for all values of x. An equation is true for only certain values of x.

(2x+3y)2=12(xy+3)
An identity is true for any value of the variable, but an equation is not, as above equation is only true

for x=3 and y=0 or x=0 and y=2, so it is called an equation

(x+3)2 =x2+6x+9
An identity is an equation that is true for all values of the variables; the above equation is true for all
possible values of x, so it is called an identity.

Question No. 4
Solve the following equation and find the values of independent variables.
1. 5x + 10 7(15-x) =0
2. 2x-4 = 4x-8
5x+2 10x+3

Solution part 1
5x + 10 7(15-x) =0
5x+10-105+7x=0
12x-95=0
12x=95

X=95/12
X= 7.92

Solution part 2
.
2x-4 = 4x-8
5x+2 10x+3

(2x-4)*(10x+3)=(4x-8)*(5x+2)
2x*10x+2x*3-4*10x-4*3=4x*5x+4x*2-8*5x-8*2
20x2 +6x -40x -12 = 20x2 +8x -40x -16
20x2 -34x -12= 20x2 -32x -16
20x2-20x2-34x+32x-12+16=0
-2x+4=0
2x= -4
X= -4/2
X= -2