The Copperbelt University

School of Business
HRM/BSP140 - Mathematical Analysis
Quiz 1

Time allowed : 90 minutes Total marks : 60

Instructions: • Attempt All the questions.

• Full credit will only be given when necessary work is shown.
• Indicate your student number on all answer sheets.
• Non-programmable calculators are allowed.

1. (a) (i) What does n[M ∩ N ] = 0 imply about sets M and N ? [1]
(ii) What is implied about sets A and B if n[A ∪ B] = n[B]? [1]
(b) A survey was carried out by government through ministry of labor, one of the aims
being to discover to what extent minimum wage was being implemented by firms on
the copperbelt. 32 firms had employees getting below and above the minimum wage,
65 firms had just one of these attributes and 90 firms paid its employees above the
minimum wage. If 22 firms did not give out full information, how many firms were
included in the survey? [4]
(c) A polynomial f (x) = kx3 + 4x2 + x − l is such that when it is divided by its factor
3
x − 1, the quotient is symmetrical about the line x = . [10]
2
(i) Find the value of k and l.
(ii) Sketch the graph of y = f (x). Hence determine values of x such that f (x) ≥ 0.
3 2 √ √
(d) Use rationalization to express √ √ +√ √ in the form a( b + c) where
3− 2 3− 2
a, b and c are integers. [4]

1
2. (a) A researcher has developed a model P = 12Q − 2n − nQ2 to describe profit (in K00)
given the number of machines used (Q) and the number of deliveries (n) in a day.
[7]
(i) Show that the system is uneconomic if 2 machines are used and 4 deliveries are
made on a particular day.

If three deliveries are made on a particular day:

(ii) draw a graph which represents profit and use it to find the number of machines
used; at break-even points, at maximum profit and determine the amount of
profit made.
(iii) What is the initial cost of this process?
√ √ √
(b) Solve the equation 8 − x − −2x − 7 − x + 9 = 0. [5]
(c) A manufacturer of a new product has found that he can sell 70 units per week direct
to the customer if the price is K48. In error, the price was recently advertised at
K78 and as a result only 40 units were sold in a week. The manufacturers fixed cost
of production are K1, 710 a week and variable costs are K9 per unit. [8]
(i) Find a linear demand function in the form P = f (Q).
(ii) Recommend a unit price which would maximize profit and find the quantity
demanded and profit generated at that price.
(iii) Assume there is a sudden change in trading conditions resulting in a 20% reduc-
tion in demand at all price levels, find the equation of the new demand function
and recommend how the manufacturer should respond.

3. (a) Solve the following inequalities: [10]

5 + 7x
(i) 2x4 − x3 + x2 < x + 1 (ii) ≥4
1 + 2x
(b) The demand and supply functions for a good are given by the equations: [10]

P = 505 − 50QD ,

P = (QS + 10)2 + 5.
(i) Use algebra to determine the equilibrium price and quantity.
(ii) Plot the demand and supply functions on the same diagram, and calculate the
consumer and producer surplus at the point of equilibrium given that the cor-
responding total economic surplus is K2, 166.67.
(iii) Find the price elasticity of demand and supply at the point when quantity
demanded and supplied is 6 units. Interpret your results.
(iv) Analyze the effect of the introduction of a price ceiling of K205 in this market.
Hence, calculate the profit made by black marketeers if a black market operated
in this market.

END OF QUIZ 1!