Student Particulars

Name SASHIKALA GARNAISON

IC Number 950210-14-5718
Student Number 010-2560127
Course BACHELOR OF ACCOUNTING (BAC)
Subject Title BUSINESS MATHEMATICS
Subject Code FIN2453

 Full-Time  Part-Time  Independent

Mode of Study
Learning  E-Learning

Name of Lecturer MISS DINESWARY

Due Date 4TH NOVEMBER 2015
College SEGI UNIVERSITY

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Declaration by student:

I, SASHIKALA GARNAISON , hereby declare that the attached assignment is my own

work and understand that if I am suspected of plagiarism or another form of cheating, my
work will be referred to the Programme Director who may, as a result recommend to the
Examinations Board that my enrolment in the programme be discontinued.

Acknowledgement of receipt

____________ _____________

Date Received Signature of Receiving Officer

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Table of Contents

Coursework Cover Sheet ...................................................................................................................

Coursework Question.........................................................................................................................

Assignment marking scheme .............................................................................................................

Table Of Content..............................................................................................................................1

QUESTION 1............................................................................................................................. 2 - 6

QUESTION 2............................................................................................................................. 7-10

REFERENCES ..............................................................................................................................11

Turtitin Report ...................................................................................................................................

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QUESTION 1

The demand function for a good is given by 𝑞 = 60 − 𝑝2 − 4𝑝, and the supply function is given
by 𝑞 = 3𝑝2 + 12𝑝 − 15. Sketch the demand and supply curves on the same diagram. Determine
the equilibrium price and quantity using

a) Sketched diagram
b) Simultaneous equation
c) Find the difference of equilibrium price between (a) and (b) in percentage. Explain on
the percentage
SOLUTION

a) Sketched Diagram
Finding p and q points to sketch a diagram by substitute numbers in the demand equation.

Demand function 𝑞 = 60 − 𝑝2 − 4𝑝

When p = 2 4 5 6 0 -2 -4 -6 -8
50 28 15 0 60 64 60 48 28
q=

Supply function 𝑞 = 3𝑝2 + 12𝑝 − 15

When p = 1 2 3 0 -2 -4 -5 -6 -7

0 21 48 -15 -27 -15 0 21 48

q=

Refer to the graph, it has two equilibrium point where demand curve and supply curve intercept
each other which in (- 6.80,41) and (2.80,40.50) point. The price cannot be in negative side, so
the (p= -6.80 and q= 41) equilibrium point not related to this graph. Positive equilibrium point
which is (2.80,40.50) is the perfect intercept with demand and supply curve.

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 b) Simultaneous Equation
 Demand function
𝑞 = 60 − 𝑝2 − 4𝑝 1

 Supply function
𝑞 = 3𝑝2 + 12𝑝 − 15 2

Equilibrium Price And Quantity:

Demand function = Supply function

60 − 𝑝2 − 4𝑝 = 3𝑝2 + 12𝑝 − 15

−𝑝2 − 4𝑝 + 60 − 3𝑝2 − 12𝑝 + 15 = 0

−𝑝2 − 3𝑝2 − 4𝑝 − 12𝑝 + 60 + 15 = 0

−4𝑝2 − 16 + 75 = 0

Therefore,

𝑏 2 + 4𝑎𝑐 = 162 − 4 (−4)(75)

= 256 – (-1200)

= 1456 (Greater than zero. The equation has two solutions)

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For a quadratic equation of the form 𝑎𝑥 2 + 𝑏𝑥 + 𝑐 = 0, the solution are

−𝑏 ± √𝑏 2 − 4𝑎𝑐
𝑝1, 𝑝2 =
2𝑎

For a = - 4, b= -16, c= 75

−(−16) + √(−16)2 − 4(75)(−4)

𝑝1 =
2(−4)

1
= 8 [(−16 − 4)(√91)]

√91
= -2-
2

= - 2- 4.769696

= - 6.769696 rounds off (- 6.77)

When p = -6.77

𝑞 = 60 − (−6.77)2 − 4(−6.77)

= 41.2471 rounds off (41.25)

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 −(−16) − √(−16)2 − 4(75)(−4)
𝑝2 =
2(−4)

1
= 8 [(4)(√91) − 16]

1
= (√91 – 4)
2

1
= (5.539392)
2

= 2.769696 rounds off (2.77)

When p= 2.77

𝑞 = 60 − (2.77)2 − 4(2.77)

= 41.2471 rounds off (41.25)

c) Find the difference of equilibrium price between (a) and (b) in percentage. Explain on
the percentage

𝑃.𝑠𝑘𝑒𝑡𝑐ℎ−𝑃 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑖𝑜𝑛
Percentage difference = X 100%
𝑃 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑖𝑜𝑛

2.80−2.77
= X 100 %
2.77

= 1.08 %

 The percentage difference is very low about 1.08%, hence we can conclude that the
values of equilibrium price are correct. The small differences due to small errors in the
sketching. (Sometimes solutions may be close approximations of the actual solutions).

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  QUESTION 2
The function 𝑓(𝑥) is given by

𝑎
𝑓(𝑥) = + 𝑏𝑥 + 𝑐,
1 + 𝑥2

For some constants a, b, c. Given that𝑓(0) = 8, 𝑓(1) = 3 𝑎𝑛𝑑 𝑓(2) = −8⁄5,

a) find a system of linear equation for a, b, c, solve this system using a matrix method,

b) find 𝑓 ′ (𝑥) function.

SOLUTION

a) find a system of linear equation for a, b, c, solve this system using a matrix method

The function 𝑓(𝑥) is given by

𝑎
𝑓(𝑥) = + 𝑏𝑥 + 𝑐,
1 + 𝑥2

When 𝑓 (0) = 8

𝑎
𝑓(0) = + 𝑏(0) + 𝑐 = 8
1+(0)2

𝑎+𝑐 =8 1

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When 𝑓 (1) = 3

𝑎
𝑓(1) = + 𝑏(1) + 𝑐 = 3
1+(1)2

𝑎
+𝑏+𝑐 =3 2
2

When 𝑓 (2) = −8/5

𝑎 8
𝑓(2) = + 𝑏(2) + 𝑐 = − 5
1+(2)2

𝑎 8
+2b+c = - 3
5 5

The Equation Are:

𝑎+𝑐 =8 1

𝑎
+𝑏+𝑐 =3 2
2

𝑎 8
+2b +c = - 3
5 5

Write In Matrix Notation

1 0 1 𝑎 8
A = (−1/2 1 1 ) (𝑏 ) = ( 3 )
−1/5 −2 −1 𝑐 −8/5

Determinant Solution |𝐴|= 1(1 −2) − 0(1/2 −1/5) + 1(1 −1/5) = -1/5

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Matrix Of Cofactor

1 1 1/2 1 1/2 1
| | | | | |
2 1 1/5 1 1/5 2
0 1 1 1 1 0
| | |1/5 1| |1/5 2|
A= 2 1
0 1 1 1 1 0
| | |1/2 1 | |1/2 1|
1 1
( )
−1 −3/10 4/5
A=( 2 −4/5 −2 )
−1 −1/2 1

−1 2 −1
Adjustment A = (−3/10 4/5 −1/2)
4/5 −2 1

−1 2 −1 5 −10 5
1
A= −1/5 (−3/10 4/5 −1/2) = -5 (3/2 −4 5/2)
4/5 −2 1 −4 10 −5

Result,

5 −10 5 8
X=A B = (3/2 −4 5/2) ( 3 )
−4 10 −5 −8/5

Where:-

= 5 (8) + (-10)(3)+ 5(-8/5) =2 a

= 3/2 (8) + (-4)(3)+ (5/2)(-8/5) = - 4 b

= - 4 (8) + 10(3)+ (-5)(-8/5) =6 c

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 b) find 𝒇′ (𝒙) function.

A=2

b = -4

c=6

2
𝑓(𝑥) = − 4𝑥 + 6
1 + 𝑥2

𝑓 ′ (𝑥) = (2)(1)(1 + 𝑥 2 ) (2𝑥) − 4

𝑓 ′ (𝑥) = −4𝑥(1 + 𝑥 2 ) − 4

−4𝑥
𝑓 ′ (𝑥) = −4
(1 + 𝑥 2 )

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REFERENCES

Anderson, T.W. and H. Rubin (1950), “The Asymptotic Properties of Estimates of the
Parameters of a Single Equation in a Complete System of Stochastic Equations,” Annals of
Mathematical Statistics, 21: 570–582.

Baltagi, B.H. (1989), “A Hausman Specification Test in a Simultaneous Equations Model,”

Econometric Theory, Solution 88.3.5, 5: 453–467.

Basmann, R.L. (1957), “A Generalized Classical Method of Linear Estimation of Coefficients

in a Structural Equation,” Econometrica, 25: 77–83.CrossRef

Basmann, R.L. (1960), “On Finite Sample Distributions of Generalized Classical Linear
Identifiability Tests Statistics,” Journal of the American Statistical Association, 55: 650–
659.CrossRef

Bekker, P.A. (1994), “Alternative Approximations to the Distribution of Instrumental

Variable Estimators,” Econometrica 62: 657–681.CrossRef

Bekker, P.A. and T.J. Wansbeek (2001), “Identification in Parametric Models,” Chapter 7 in
Baltagi, B.H. (ed.) A Companion to Theoretical Econometrics (Blackwell: Massachusetts).

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