Scribd Logo
Upload

Welcome to Scribd!

  • Mathematical Economics Practice Questions

    Uploaded by

    iskandar12345
    22 views11 pages
    Mathematical Economics

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Mathematical Economics

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    22 views11 pages

    Mathematical Economics Practice Questions

    Uploaded by

    iskandar12345
    Mathematical Economics

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 11
    ‘A system of linear equations can be solved with the ‘method of elimination by addition or elimination by sub- stitution, A solution may involve one or more parameters. Substitution is also useful in solving nonlinear systems, Solving a system formed by the supply and demand ‘equations for a product gives the equilibrium point, which Review Problems 1. The slope of the line though 2.5) and (3,4) is. Find & 2. The slope ofthe line through (5,4) and (4s 0. Find k. In Problems 3-9, determine the slope-intercept form and a {general linear form of an equation ofthe straight line that has the indicated properties 3, Passes through (—2, 3) and has y-intereept — 4, Passes through ( 8, Passes through (8,3) and has slope 3 6. Passes through (3, 5) and is vertical 1) and is parallel tothe line y = 3x —4 7, Passes through (—2, 4) and is horizontal 8, Passes through (1, 2) -3y+5x=7 9. Has y-intercept ~3 and is perpendicular to 2y + Sx 10. Determine whether the point (3,11) lies on the fine through (2,7) and 4,13), is perpendicular to the line In Problems 11-16, determine whether the lines are parallel, perpendicular or neither, M. x+4y42=0, 8¢—2y-2=0 1 y-2=2-1), W+4y—3=0 1B 244), yaar +2 1 2+ 7y—4=0, 6x4 21y =90 WS y=Sr+2, W0r-2y=3 16 y= y In Problems 17-20, write each line in slope-intercept form, and sketch. What isthe slope of the line? 1. 3e-2y=4 18, = —3y 4 19, 4—3y=0 20. 3x ~5y ‘In Problems 21-30, graph each function. For those that are linear, sive the slope and the vertcal-axis intercept. For those that are ‘quadratic, give al intercepts and the vertex, 2 y =f) = 17-5 22 s= a =5—H+F B.y=say=9-2 24, y= fl) = 3e-7 wy a 2 y FO) = (2 +2 +3930. y Nd Problems 31-44, solve the given system. 2e-y=6 Be —dy=7 yadr-4 2x+dy ' [art oy a | Chapter3 Review 169 indicates the price at which consumers will purchase the same quantity of a product that producers wish to sell at that price, Profit is total revenue minus total cost, where total cost is the sum of fixed costs and variable costs. The break-even points are the points where (otal revenue equals total cost 45. Suppose @ and b are linearly related so that a = 0 when b= Sand a= 3 when b = —5. Find a general linear form of an ‘equation that relates @ and b. Also, find a when b = 3. 46, ‘Temperature and Heart Rate When the temperature, T (in degrees Celsius), ofa cat is reduced, the cat's heat rate, (in beats per minute), decreases. Under laboratory conditions, a cal at a temperature of 36°C had a heart rate of 206, and at a temperature of 30°C its heart rate was 12 Ifris linearly related to 7, where T is between 26 and 38, (a) determine an equation for r in terms of T, and (b) determine the cat's heat rate at ate 447, Suppose f isa linear function such that f(1) = $ and f(x) decreases by four unis for every three-unit increase in x, Find f(x). 48, IF is linear function such that f(—1) = 8 and f(2) 00. 49. Maximum Revenue ‘manufacturer's produet is p 200 ~ 29, where p isthe price (in dollars) per unit wt are demanded. Find the level of production that maximizes the manufactuter’s total revenue, and determine this revenue, 150, Sales Tax The difference in price of wwo items before a 7% sales taxis imposed is $2.00. The difference in price ater the sales ‘ax is imposed is allegedly $3.10. Show that this scenario isnot possible, SI. Equilibrium Price Ifthe supply and demand equations of certain product are 120p — q~ 240 = O and 100p +4 ~ 1200 = 0, respectively, find the equilibrium price. mand function for 2 173 170 Chapter3. Lines, Parabola tems Psychology In psychology, the term semantic memory refers to our knowledge of th \ relationships of words, as well asthe means by which ie store and retrieve such information.* In a network model of semantic memory there hierarchy of levels at which information is stored. In an experiment by Collins and Quillian based om a network model, data were obtained on the reaction time to respond to simple {questions about nouns. The graph of the results shows that, on the average, the reaction time, R (in milliseconds), is linear function of the level, L, at which a characterizing property of the noun is stored. At level 0, the reaction time is 1310; at level 2, the time is 1460. (a) Find the linear function. (b) Find the reaction time at level 1. (c) Find the slope and determine its significance. 53. Break-Even Point A manufacturer ofa certain product sells all that is produced. Determine the break-even poiat if the product is sold at $16 per unit, fixed cost is $10,000, and variable cost is given by yy = 84, where q is the number of units produced (yc expressed in dollars). 54, Temperature Conversion Celsius temperature, C, linear function of Fahrenheit temperature, F. Use the facts that 32°F isthe same as 0°C and 212°F is the same as 100°C to find this function, Also, find C when F = 50, 35. Pollution In one province of a developing nation, water pollution is analyzed using a supply-and-demand model. The 2OxC Graphically solve tener ys environmental supply equation L = 0.0183 the levy per ton, (in dollars) as a function of total pollution, p (in tons per square kilometer), for p > 0.2295, The environmental 0.0378 demand equation, L = 0.0005 + describes the per-ton abatement cost asa function of total pollution for > 0. Find the ‘expected equilibrium level of total pollution to two decimal 03x ~04y =2.5 05¢40.7y=34 Roynd x and y to two decimal places. oe aX Graphically solve the nonlinear system 3 y= where x > 0 yor—9 A any dia paces GI Gaptcaly ate malay yard y=2 ign any dco PE eats sve eon e+4ex'—3r by treating it as a system, Round x to two decimal places. (QEXPLORE & EXTEND Mobile Phone Billing Plans In most urban areas there are many service providers each offering a number of plans. The plans can include monthly access fees, free minutes, charges for addi- tional airtime, regional roaming charges, national roaming charges, peak and off-peak rates, and long-distance charges (not to mention activation fees, cancellation fees, and the like). Even if a consumer has a fairly good knowledge of her typical mobile phone usage, she may have todo dozens of calculations to be absolutely sure of getting the best deal in town. Mathematical modeling often involves making informed decisions about which factors in a problem are less important. These are then ignored to get a reason- ably good approximate solution—in a reasonable amount of time. You may have heard the expression “simplifying assumptions.” There are a lot of old jokes about this pro- ‘cess. For example, a mathematically minded bookie who S= 4 mobile phone plan can be quite difficult. “6G. R. Loftus and E. F Loftus, Homan Memory: The Processing of Information (New York: Lawrence Esbaum Assoviats, Ine distbuted by the Halsted Pres, Division of ohn Wiley & Sons ne. 197). 174 is trying to calculate the attributes of the horses in a given race should probably not assume that all the horses are per- fectly spherical, We will simplify our comparison of mobile phone plans by considering just the number of “monthly home airtime minutes” available for the “monthly access fee” and the price per minute of “additional minutes.” Many providers offer plans in terms of these basic, parameter. Examining Verizon’s offerings for the Saddle Rives, New Jersey, area, in the spring of 2006, we found these America’s Choice monthly plans Pi: 450 minutes for $39.99 plus $0.45 per additional minute Pz: 900 minutes for $59.99 plus $0.40 per additional minute Ps: 1350 minutes for $79.99 plus $0.35 per additional minute 7See Hoa Wang and David Whee, “Ping Industrial Pllation in China: An Economic Analysis of the Levy System,” Work Bank Policy Reseach ‘Working Paper #1614, September 1996 Chapter4 ReVieW cupsmamscmmns ter Review 203 Important Terms and Symbols Examples Section 4.1 Exponential Functions exponential function, 6, for b > 1 and for0 (1, 00) given by f(x) = 1/x: (a) Show thatthe domain of f can be taken to be (0,1) (b) Show that with domain (0, 1) the range of fis (1,00). (©) Show th ‘The exercise shows thatthe numbers in (0, 1) are in one-to-one correspondence with the numbers in (1, 00) so that every base of either kind corresponds to exactly one ofthe other kind. Who ‘would have thought it? “(1,co)—so many numbers; (0, 1)—s0 lie space.” {has an inverse g and determine a formula for g(3). 5 Display the graph of the equation (6)5° +x = 2, (int: Solve ory as an explicit function of ©) : ¥ and y= 2 on the same seven. appears tha : Ie appears that » E Graph the graph of y = + isthe graph of y = 3° shifted two nits to the right. Prove algebfaically that this is indeed true. Q EXPLORE & EXTEND Drug Dosages! termining and prescribing drug dosages are D== important aspects of the medical profes- sion. Quite often, caution must be taken because of possible adverse side or toxic effects of drugs. Many drugs are used up by the human body in such a ‘way that the amount present follows an exponential law of decay as studied in Section 4.1. That means, if N(t) is the amount of the drug present in the body at time f, then N= Noe" Where & isa positive constant and Ny is the amount present attime 1 = 0. If H is the half-life of such a drug, meaning a '* RW. Stacy et al sential of Biological and Medical Physics (New York: 1959), McGraw the time H for which N(H) Section 4.2, No/2s then again from H =(In2)/k @ Note that 4 completely determines the constant k since we ‘can rewrite Equation (2) as k = (In 2)/H. Suppose that you want to analyze the situation whereby equal doses of such a dng are introduced into 4 patient's system every / units of time until a therapeutic level is attained, and then the dosage is reduced to maintain the therapeutic level. The reason for reduced maintenance doses is frequently related to the toxic effects of drygs. "nis discussion is adapted from Gerald M. Armstong and Calvin P Midgley, “The Exponential Decay Law Applied to Medical Dosages.” The Mathematics Teacher, 80, 0.3 (February 1987), 110-13. By permission ofthe Nations), Council of Teachers of Mathematics 209 and then solve for y’. Logarithmic differentiation can also be used to differentiate y = w’, where both w and v are functions of x ‘Newton's method is the name given to the following for- mula, which is used to approximate the roots of the equation f(x) = 0, provided that f is differentiable: _ fle) S'@n) 5253 Review Problems In Problems 1-30, differentiate Keb tal Be fw) = wer bw? ayn 6. 0) = lox, PFT 8 y= 2 1. 0 1B. f= Inq + arg +O") A. y= +2) + I-27 Is yaes ae ie Wn y= 19. y = log, (Bx +5)? A. f=md +1 +P +P) By=a+nh ws ya ite 28. dM) =In(tve=A) 2H. y= 3) G+ DG 4 280 an y= CEO am y= (Inadye 7 O84 cee 2. yar 30. y= xt" ‘In Problems 31-34, evaluate ya the given value of SL yaGt Dine ret 327m te a , US eat B.y=(pyx=6 G8 — 3x4 5/87 t a4 y= [PEST 0 “ASS {In Problems 35 and 36, find an equation of the tangent line to the curve atthe point corresponding to the given value of x. 38. y= Sex =In2 36. y=xtxtingx=1 137, Find the y-intercept ofthe tangent line to the graph of y=2x(22-") atthe point where x = | Bass. 1 ass. info Chapter 12 Review 573 In many cases encountered, the approximation improves as Because the derivative f"(x) of a function y = f(x) is itself @ function, it can be successively differentiated to ‘obtain the second derivative f”(x), the third derivative f(x), and other higher-order derivatives. 38. Ifw = 2" + In(1 42°) and.x = In (1+), find w and dw dt when 1 In Problems 39-42, find the indicated derivative atthe given poi SUD) a0. y= Pay" Che) Inv," (m2) 42. y= xIn3,9", (1, 0) In Problems 43-46, find dy ds. BoP 4d t yy =4 44, xy 45. In?) = ay 46. Pom =e In Problems 47 and 48, find d?y/dx? atthe given point. AL xtyty=5Q0 48 Pbayty=10-) 49. Ify is defined implictiy by &” = (y + I)e", determine both 0 throughout an interval, then f is concave up over that interval, and its graph bends upward. Iff"(x) < O over an interval, then is concave down throughout that interval, and its graph bends downward. A point on the graph where f is continuous and its concav- ity changes is an inflection point. The point (a,f(a)) on the graph is a possible point of inflection if either fa) = 0 or fa) is not defined and f is continuous at a. ‘The second derivative also provides a means for testing certain critical values for relative extrema: ‘Second-Derivative Test for Relative Extrema Suppose f"(a) = 0. Then If f"@) <0, then f has a relative maximum at a. Tf f"(@) > 0, then f has a relative minimum at a. Asymprotes are also aids in curve sketching. Graphs “blow up” near vertical asymptoies, and they “settle” near horizontal asymptotes and oblique asymptotes, The line x = @ is a vertical asymptote for the graph of a function f if Review Problems a ere 1-4, find horizontal and vertical asymptote. a2 «43 = ae _ att 6 52-3 Bye Gre 3+ Jn Problems 5-8, find critical values. 5S. fx) 6. f(x) = 8x — 1x + 6)* ter TIO sae BIO Ess Xin Problems 9-12, find intervals on which the function is increasing or decreasing 12, fs) = WPT Chapter 13 Review 621 limf(x) = 00 or ~20 as x approaches @ from the right (x > a) or the left (& > a”). For the case of a rational function, f(x) = P(x)/Q(x) in lowest terms, we can find ver- tical asymptotes without evaluating limits. If Q(a) = 0 but P(a) # 0, then the line x = a isa vertical asymptote. ‘The line y = b is a horizontal asymptote for the graph of a function f if at least one of the following is true fim so) =b or tim fa) = The line y = mx +b is an oblique asymptote for the ‘graph of a function f if at least one of the following is true: fim Y(2)—(me-+b)) = 0 or im (F)— (me +b) = 0 In particular, a polynomial function of degree greater than 1 has no asymptotes. Moreover, a rational function ‘whose numerator has degree greater than that of the denom- ‘nator does not have a horizontal asymptote and a ratio- nal function whose numerator has degree more than one ‘greater than that of the denominator does not have an oblique asymptote. Applied Maxima and Minima In applied work the importance of calculus in maximization and minimization problems can hardly be overstated. For example, in the area of economics, we can maximize profit ‘or minimize cost, Some important relationships that are used in economics problems are the following: total cost average cost per unit = ae quantity revenue = (price)(quantity) ¢ profit = total revenue ~ total cost erin 13-18, find intervals on which the function is concave ‘or concave down. pee Br@etoso es 18.0)" shy 16 fs) +20? — 542 1}, fo) =Qr+ WGr+2) 1B fo) =? x HF Problems 19-24, test for relative extrema. 19, f(x) = 28) — 99? 412 T 20. f= "4" fora > Oandb > 0 a. fo= +5 2 fW= 3G 23. fa) = 240) 2. f= Put eee 25-30, find the x-values where inflection points occur. 3x5 + 20x* — 30x* — S40x7 + 2x +3 e+? Er sya +2) 21. y= 4Gx 62 622 Chapter 13 Curve Sketching x) DWy= fs Problems 31-34, test for absolute extrema on the given interval. | f(x) = 3x4 = 42°, 10,2) 32. fn Hf) 35. Let fo) termine the values of x at which relative maxima and ative minima, if any, occur (b) Determine the interval(s) on which the graph of fis concave ‘up, and find the coordinates of all points of inflection, i any. f Let fix) = =* et (a)Determine whether the praph off is symmetric about the scakis, y-axis, or origin (Find the interval(s) on which fis increasing, {) Find the coordinates of all relative extrema off. (4) Determine Hin» f() and lim. f() (2) Sketch the graph off (© State the absolute minimum and absolute maximum values of Fla) Git they exis) wv Problems 37-48, indicate intervals on which the function is increasing, decreasing, concave up, or concave down; indicate relative maximum points, relative minimum points, pints of inflection, horizontal asymptotes, vertical asymptote, symmetry land those intercepts that can be obtained conveniently, Then sketch the graph. a Weyet—2- Mya 2415436049 = 12r-20 40, yell . yet? 43. sor) = EHD) a soe 6ar-1) 47. fy = 24 48, fos) = 1—In@e) 2 J. Are the following statements tre or false? ff’) = 0, then f must have a relative extremum at xo (@) Since the function f(x) = 1/x is decreasing on the intervals (20,0) and (0,00), iis impossible to find and x in the domain of f such that x; < xp and flay) < f(t) (6) On the interval (1,1, the function f(x) = x“ has an absolute ‘maximum and an absolute minimum. (a) Ifo) = 0. then (to,fGo)) must be a point of infection, (@) A function f defined onthe interval (~2,2) with exactly one relative maxionam must have an absolute maximum, 626 ‘An important function in probability theory is the standard jormal-density function Lop fly = oe"! (4) Determine whether the graph of f is symmetric about the reanis, yan (b) Fin ty itis decreasing (6) Find the coordinates of all relative extrema of f. (2) Find Bit, oo f(8) and Hise f (€) Find the intervals on which the graph of fis concave up and those on which itis concave down (0 Find the coordinates of all points of inflection, (2) Sketch the graph off (Gy) Find all absolute extreme, 51. Marginal Cost Ife = q! ~ 6q2 + 12¢ + 18 isa total-cost function, for what values of qis marginal cost increasing? 52, Marginal Revenue If = 3204" — 2g? is the revenue function for a manufacturer's product, determine the intervals on ‘which the marginal-revenue function is inereasing, 53. Revenue Function The demand equation for a ‘manufacturer's product is 20-4 an or origin, vals on which fis increasing and these on which Pp where q > 0 ‘Show that the graph of the revenue function is concave down, wherever itis defined, 54. Contraception In a model ofthe effect of contraception on birthrate,® the equation R=fey Oexe1 aa ives the proportional reduction & in the birthrate as a function of the efficiency x of a contraception method. An efficiency of 0.2 (or 20%) means thatthe probability of becoming pregnant is 80% of the probability of becoming pregnant without the contraceptive. Find the reduction (asa percentage) when efficiency is (a) 0, (b) 0.5, and (¢) 1. Find dR/dx and d#R/de?, and sketch the graph of the equation. 55, Learning and Memory If you were to recite members of a ‘category, such as four-legged animals, the words that you utter would probably occur in “chunks,” with distinct pauses between such chunks, For example, you might say the following forthe category of four-legged animals dog, at, mouse, at, (pause) hows, donkey, mule, (pause)

    You might also like