Quiz #2 (10 minutes) …question

1. The book value of a machine is expressed

by the equation
V = 60000 – 7500t
where V equals the book value in dollars
and t equals the age of the machine
expressed in years.
a. Identify the t and V intercepts

b. Interpret the meaning of the

intercepts.
c. Interpret the meaning of the slope
d. Sketch the function.
Quiz #2 (10 minutes) …question

2. A large sporting goods retailer with multiple

stores is attempting to predict the demand
for the latest high-tech basketball shoes,
the Nike-Bok Turbo Air-Pump. It is
estimated that 300pairs will be sold per day
in the retailer’s stores if the new shoe is
priced at $200. At a price of $175, 375pairs
are expected to be sold.
a. If quantity is plotted on the horizontal axis,
determine the slope and intercept form the
equation for demand.
b.Identify the p intercept and interpret its
meaning.
 Quiz #2 (10 minutes) …answer

1. Diket: V=60,000-7,500t; V: value in dollar; t: age expressed in years

Ditanya:
a. t & V intercepts
b. meaning of the intercepts
c. meaning of the slope
d. sketch the function
Jawab:
a. V=60,000-7,500t
t intercept
V = 0, t = 8 years
V intercept
t = 0, V = $60,000
b. t intercept
V = 0; at t = 8 years, value of the machine will be $0
V intercept
t = 0; at t = 0 year, value of the machine will be
$60,000
c. slope = negative
m = decrease; it means value will decrease over
years
d. …
 Quiz #2 (10 minutes) …answer

2. Diket: (Q1, P1) = (300, 200); (Q2, P2) = (375, 175)

Ditanya:
a. Q in horizontal axis
P in vertical axis; slope? Intercept?
Demand equation?
b. P intercept? Interpret/describe the meaning?
Jawab:
a. m = Y2 - Y1/X2 - X1 = P2 - P1/Q2 - Q1 = 175 - 200/375 - 300 = -1/3
P = 200; Q = 300
Y-Y1 = m(X-X1)
P-P1 = m(Q-Q1)
P – 200 = -1/3(Q – 300)
P – 200 = -1/3Q + 100
P = -1/3Q+300
b. P = 0
Q = 900 pair shoes
Q = 0
P = $300
meaning: at P = $300 on one will buy the shoes
too expensive