Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

Tutorial 1 Univariate Functions

Key terms Notes Key terms Notes

Set Modeling
Enumeration Parameter
Element Average cost
Universal set Demand function
Subset Supply function
Complement Equilibrium
Union Breakeven point
Intersection Profit
Venn diagram Total cost
Function Total revenue
Dependent variable Fixed costs
Independent variable Variable costs
Inverse function Vertex (turning point)

Section Mathematics

1) Write the following in a set notation:

a) all whole numbers greater than 7 and less than 11
b/h) all counting numbers not greater than 5
c) all integers strictly between 2 and 3
d/h) all real numbers less than 13
e/h) all real numbers x such that the inequality holds true x2 - 2x - 3 < 0

To answer questions 2, 3 and 4, please refer to the following sets U = {1, 2, 3, 4, 5, 6, 7, 9, 11, 15},
X = {2, 3, 4, 5, 6}, Y = {3, 5, 7, 9} and Z = {2, 4, 11, 15}.

2) Decide whether the following statements are true or false:

a) X = Y b/h) Y = Z c) 2 X ; d/h) 4 Y e) Y U f/h) Y
X g/h) Z

3) Enumerate all the subsets of: a) Y b) Z

4) List the members of each of the following sets:

a) X Y b/h) X Y c) X d/h) Y e) X Y f/h) X Z g/h) Y X Z

5h) Given A x R : x2 5x 6 0 and B x R : 2 x 2 5x 0 , find A B and A B.

6h) Describe each of the following sets in words given that U = {all students at WIUT}, A = {all students
taking EAP}, F = {all students taking FE} and W = {all students taking WWW}
a) A b) A F c) F W d) A W

7) Find the domain and range of the functions below and tell which of them are bounded:
a) f (x) = x + 2 b/h) f (x) = x2 1 c) f (x) = 1 x2 d/h) f (x) = ex
e) f (x) = x3
f/h) f (x) = 1/(x 4) g/h) f (x) = |x|/x

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Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

8) A rectangular plot requires 200 meters of fencing to enclose it. If one of its dimensions is x meters,
express its area (in m2) as a function of x. Determine the domain and range of the function.

9) Find the inverse of the following functions and draw their graphs. Do you notice any connection?
a) y = 3x 2, x(2,5] b/h) y = 2 0.5x, x(1,3)

10) a) If f (x) = x2 and g(x) = 2x, find: 1) f (f (x)) 2/h) f (g(x)) 3) g(g(x)) 4/h) g(f (x))

b/h) If f (x) = xx, which of the following is f (f (x)) equal to and why? You must show your workings.
1) x^(2x) 2) x^(x^2) 3) x^(x^x) 4) x^(x^(x+1)) 5) x^(x^(x^x))

11) A rectangular cardboard has the size 8 meters by 6 meters. The

square pieces of size x by x meters are cut off from the four x corners
of the cardboard and a box is made by folding by the dashed lines.
See the figure on the right.
a) Express the volume of the box as a function of x.
b) On what value(s) of x will the box have the volume of 24 cubic
meters?

12H) A manufacturer built a machine, which will address 500 envelopes in 8 minutes. He wishes to build
another machine so that when both are operating together, they will address 500 envelopes in 2
minutes. Write the equation used to find how many minutes (x) it would require the second machine to
address 500 envelopes alone and hence, solve it.

Section Economics

13) Suppose consumers will demand 60 units of a product when the price is $15.50 per unit and 35 units
when the price is $19.30 each. Find the demand equation, assuming that it is linier. Find the price per
unit when 40 units are demanded.

14h) Cost equation. Suppose the cost to produce 10 units of a product is $40 and the cost of 20 units is
$70. If cost, c, is linearly related to output, q, find a linear equation relating c and q. Find the cost to
produce 35 units.

15) Demand for a product, Q, is known to be a linear function of its price, P, that is the relationship has
the form Q = aP + b. When the price is 1 demand is 990, and for every extra unit increase in price
demand decreases by 90. Write down the demand equation.

16h) The inverse demand and supply functions of a good are given by P = 2QD + 48 and P = QS/2 + 23,
where P, QD and QS denote the price, quantity demanded and quantity supplied respectively.
a) Find the equilibrium price both algebraically and graphically.
b) Calculate the new equilibrium price and quantity if the government imposes a fixed tax of $5 per
good. Who pays the tax?

17) If the demand function of a good is given by P = 80 3Q, find the price for Q = 10 and deduce the
total revenue. If fixed costs are 100 and variable costs are 5 per unit, find the total cost when Q = 10.
What is the corresponding profit?
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Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

18h) Given the following demand functions, express TR as a function of Q and sketch the graphs of TR
against Q.
a) P = 4 b) P = 5/Q c) P = 10 2Q

19) In exercise 17, for what values of Q is TR zero? What is the maximum value of TR? What is the
corresponding quantity and price?

20h) Given the following total revenue functions, find the corresponding demand functions.
a) TR = 50Q 4Q2 b) TR = 10

21) Given that fixed costs are 1 and that variable costs are Q + 1 per unit, express TC and AC as functions
of Q. Hence, sketch their graphs.

22h) A school is publishing a calendar to raise money for a local charity. The total cost of using the
photos in the calendar is $120. In addition to this one-time charge, the unit cost of printing each
calendar is $4.50.
a) Write a model that gives the average cost per calendar as a function of the number of calendars
printed.
b) Graph the model and use the graph to estimate the number of calendars you need to print before the
average cost decreases to $6 per calendar.
c) Describe what happens to the average cost as the number of calendars printed increases.

23) Find an expression for the profit function if the demand function is 2Q + P = 25 and the average cost
function is AC = 32/Q + 5. Find the values of Q for which the firm: a) breaks even; b) makes a loss of
432 units; c) maximizes its profit.

24) On the same diagram, sketch the graphs of the total revenue and total cost functions TR = 2Q2 + 14Q
and TC = 2Q + 10. Use your graphs to estimate the values of Q for which the firm: a) breaks even; b)
maximizes its profit.

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