SIM sincarone nstrrure oF man GLOBAL EDUCATION PRELIMINARY EXAM 2014 PROGRAMME(S) : Univesity of London Degree and Diploma Prosrammes (Lead College: London Schoo! of Economics & Peltica Science) SUBIECT MT105A MATHEMATICS 1 (HALF UNIT) DATE Friday, 28 February 2014 DURATION. 2 Hours INSTRUCTIONS = DO NOT TURN OVER THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. (Candidates should answer all EIGHT questions: all SIX questions of Section A (60 marks in otal) and BOTH questions from Section B (20 marks each). Candidates are strongly advised to divide their time accordingly. Caleulators may not be used fr this paper. ‘Total number of pages: 3 (including this page) PetSECTION A ‘Answer all slx questions fom this section (60 marks in total. Functions f and g are given by Sle) = 2442042042 and (2) = —2 4 208 + 182 + Show that the curves y = f(z) and y = o(z) intersect for exactly two values of 2, Find these valuas of. (Do not attempt to sketch the curves) Wirite the equations 22 3y— 0, eeSytee8 and 2-242 in matrix form. Hence, use a matrix method to find the numbers x, y and = that satity hem, ‘The function J is given, for x > 0, by f( ‘Show that fas one critical (or stationary) point and determine its natre. Find the critical (or stationary) points of the Function Ely) = 10— 22 + 29? — Dy" + Day Determine whether each critical point isa local maximus, local minim or saddle pont, Dering ing to [epee . © | asirea® 09 fhe Pid hen em nd stn thm stat hs snd temo snus ota a Page 2 of 3 PLEASE TURN OVER,SECTION B ‘Answer both quastions from this section (20 marks each). 7. (@) A travel company is the only provider of holidays (of one week's duration) to two private island resorts, X and ¥. The demand equations for such holidays are given by 200—px and y= 100- py, whore x and y are the numbers of week-long holidays at X and Y éemanded (respec- tively) and px and py are (respectively) the prices of thee holidays. ‘The company’s Joint total cost function (that is, the cost of providing + holidays in X and y holidays in ¥) is 22? + 9? + 22y Find an expression in terms of and y forthe profit the company obtains from selling these holidays. Determine the numbers x and y of holidays in resorts X and ¥ that ‘will maximise the company’s prof, () James opens a savings account with a bank. ‘The interest rate is guaranteed to be fixed at arate of 5% per annum for K years after he opens the account. (Here, K is fan integer greater then 1.) He opens the savings account with payment of $200 on. 1 Janvary 2014, and males further deposit of $200 yearly, on 1 January each year, starting | January 2015, Find an expresion (volving K, and in as simple a form as possible) for the value of his savings K years after he opens the account (that is, years from 1 January 2014, just after he has made a new deposit of $200) ‘Suppose now that he continues to make the same deposits after this time, but that the interest rate falls to the fixed rate of 4% forthe next N years (where Vis an integer greater than 1), Find an expression (Involving KC and NV, and in as simple form as possible) for the value of his savings K +N years after he opened the account that Js, K+ years from 1 January 2014, just after he has made a new deposit of $200). 8. A consumer has a uty function ufz,n) = (e+ +) when consuming amounts = and y of two goods, X and ¥, respectively. Bach unit of X Costs the consumer p dollars and each unit of Y cost him 9 dallas. If the consumer has a budget for X and Y of Mf dollars, use the Lagrange multiplier method to determine the quantities, 2° andy", ofthese two good that he should consume if he wants to maximise his utility subject to his budget constraint, (You should simplify your answers far as possible) Suppose that, forgiven values ofp ¢ and M, the consumer's maximum uit subject to his budget constraint is V(p,q,M¥). Find, in as simple « form as possible, an expression for V. ‘Use your values of * and y* to determine, in as simple a form as posible, the corresponding ‘value of the Lagrange multiplier, X* ay. Hence verify that SY = x Page 3 of 3 END OF PAPER