Math 30.

14 Problem Set 1

1. Find the area of the region bounded by

y = −4x + 9, y = 2x2 − 11x + 9, and the lines x = −2 and x = 5.

2. Find the area of the triangle formed by the lines

5x + y − 14 = 0, x + 7y + 38 = 0, and 9x − 5y + 2 = 0

3. Thailand’s Gini index in 2019 was 34.9%. The equation of the Lorenz curve
that was used to compute this measure of income distribution is

f (x) = 1 − (1 − x)m .

(a) Find the value of m. [Round off your answer to four decimal places]

(b) Graph f (x) and the curve of absolute equality where the Lorenz curve
is valid. [Use a graphing software]

(c) For what values of m will the Gini index give a measure of income distribution
that is more equitable? Justify your answer.
Math 30.14 Problem Set 1

4. Two investments, A and B, produce a continuous income stream of 3%,

compounded continuously. The rate of flow of income from investment A
is f (t) = 3000e0.04t and the rate of flow of income from investment B is
expected to be g(t) = 5000.

(a) Find the total income produced by each of the two investments over the
7-year period.

(b) Find the future value, the accumulated amount of money flow, of each
of the two investments for 7 years.

(c) Compute the interest earned by each investment over the 7-year period.

(d) Find the present value of each of the two investments.

(e) Interpret the answers determined in (a) to (d)

5. Consider the price-supply function

p = S(x) = 5 + 0.1x.

(a) Find the equilibrium quantity x if the producers’ surplus at x is 500

pesos.

(b) Find the corresponding equilibrium price, p.

(c) If p = D(x) = ax2 + b is the price-demand equation, find the values of

2000
a and b so that the consumers’ surplus at the equilibrium point is
3
pesos.