Business Mathematics

“Study made easy.”

 BUSMATH MID EXAM TOPICS

1. Straight Line Equation

2. Price Elasticity of Demand
3. Simultaneous Equation (Demand &
Supply Function, BEP, Black Market)
4. Non-linear function
5. Linear Programming

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Straight Line Equation
 Straight Line Equation (Topic 1)

Data about the line Equation

Slope = m
y-y1 = m(x-x1)
One point (x1,y1)

Two points
(x1,y1) and (x2,y2)

Slope = m
y = mx + c
y intercept = c

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Straight Line Equation (Topic 1)

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Straight Line Equation (Topic 1)

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 Straight Line Equation (Topic 1)

The quantity demanded of a product is 87

units when P = 0. If the demand Q drops by
7 units for every unit increase in price, write
down the equation of the demand function
in the form of P = f(Q) and plot its graph.

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Straight Line Equation (Topic 1)

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Elasticity Of Demand
 Elasticity of Demand (Topic 2)

What is “Price Elasticity of Demand”?

an economic measure of the change in the quantity demanded or
purchased of a product in relation to its price change

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Elasticity of Demand (Topic 2)

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 Elasticity of Demand (Topic 2)

Formulas
Symbol Ed

Formula (1) Ed =

Formula (2) Ed =
(Given P = a-bQ)
Formula (3) Ed =

Qd = Quantity Demanded
P = Price

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Elasticity of Demand (Topic 2)

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Elasticity of Demand (Topic 2)

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 Elasticity of Demand (Topic 2)

Given a demand function of Q = 5000 –2.5P. If price

increases
5% from 750 then quantity demanded will:
a. drop by 0.769%
b. drop by 0.882%
c. drop by 2.5%
d. drop by 3%
e. increase by 2.5%

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Elasticity of Demand (Topic 2)

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Simultaneous Equation
Demand & Supply Function (Topic 3)

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 Demand & Supply Function (Topic 3)
Exc. 3.1

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Demand & Supply Function (Topic 3)

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Demand & Supply Function (Topic 3)

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Break-Even Point (Topic 3)

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 Break-Even Point (Topic 3)

Exc. 3.2

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 Break-Even Point (Topic 3)

Exercise 3.2

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 Break-Even Point (Topic 3)

Exercise 2
A firm receives $2.5 per unit for a particular good. The fixed costs
incurred are $44 while each unit production cost $1.4.

a. Write down the equation for total revenue and total cost
b. Calculate the break even point
c. If government imposes a tax of $0.70 per unit sold, and the firm
decides not to increase price, recalculate the break-even point.
d. Show the graphical solutions for part (b) and (c).

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Break-Even Point (Topic 3)

Exercise 2

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Black Market (Topic 3)

Exercise 1

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 Black Market (Topic 3)

Exercise 1

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 Black Market (Topic 3)

Exercise 2

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 Solve Three Variables (Topic 3)

Solve the following X, Y, and Z

X + Y + 2Z = 38
2X + 3Y + Z = 52
3X + 2Y + 3Z = 72

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Non-Linear Function & Application
 Non-Linear Function & Application (Topic 4)

Find the value of x!

A.

B.

C.

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Non-Linear Function & Application (Topic 4)

B.

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 Non-Linear Function & Application (Topic 4)

C.

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 Non-Linear Function & Application (Topic 4)

The supply and demand function for a particular

market are given by the equations:

● Ps= 0.4Q2 + 0.2Q + 35 ● Pd=

0.5Q2 – 0.15Q + 25

a. Calculate the equilibrium of price and quantity

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Non-Linear Function & Application (Topic 4)

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 Non-Linear Function & Application (Topic 4)

The sales of ‘BEST SELLER’ book are expected to grow at

the equation of S = 1200 (1 – e-0.2t) where t is given in days.

a. Calculate the number of books sold after one month.

b. Calculate the number of books sold after 50 days.

c. How many days will it take to get an approximately sales of

800 books?

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Non-Linear Function & Application (Topic 4)

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Linear Programming
 Linear Programming Exercise (Topic 5)

Exercise 1 (1)

Bill is a bodybuilder. He wants his body to get

enough protein all day, so he makes sure each
of his food contain enough protein. Each cut of
chicken contains 6 g of protein, while each cut
of beef contains 8 g of protein. He needs at
least 72 g of protein each day.

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 Linear Programming Exercise (Topic 5)

Exercise 1 (2)
In addition, he also needs at least 140 calories to
do exercise. Each cut of chicken contains 10 cal.,
and each cut of beef contains 20 cal. Each cut of
chicken cost $7 and beef is $9. Calculate the
combination of chicken and beef he needs to
purchase in one day if he wants to get the
nutrition he needs while also minimizing the cost.

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 Linear Programming Exercise (Topic 5)

Exercise 1 (Answ)

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 Linear Programming Exercise (Topic 5)

Exercise 1 (Answ)

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Linear Programming Exercise (Topic 5)

Exercise 3

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 Linear Programming Exercise (Topic 5)

Exercise 3 (Answ)

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 Linear Programming Exercise (Topic 5)

Exercise 3 (Answ)

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 Thank You!
*end of Busmath UTS materials