Topic 9

LINEAR EQUATIONS &

FUNCTIONS
 Definition of a Linear Equation

• A linear equation has terms consisting of a

constant times a variable to the first power.
The terms refer to the parts of the equation
which are separated by plus, minus and
equal signs.
Examples of Linear Equation:
3x + 4y = 10.
2x - 3y + z = 12.
y = x.

Example of a non-linear Equation:

7x + 2xy = 24.
The Standard Form of a Linear
Equation
The Standard form of Linear
Equation is ,
Ax + By = C
where A, B, and C are constants; and
both A and B are not both zero.
 Straight Line
• The graph of a linear equation is a straight
line.
• The points at which the graph of a line
crosses the axes are called intercepts.
• The x-intercept is the point at which the
graph crosses the x-axis; the y-intercept is
the point at which the graph crosses the
y-axis.
 Slope of a Line
• Slope of a line is an indicator of its
steepness.
• The value of the slope of a straight line,
generally denoted by ‘m’ is the ratio of the
vertical change to horizontal change
between two points on the line.
 Computation of Slope
• The slope of a non-vertical line that passes
through the points of (x1, y1) and (x2, y2) is
given by:

• Slope m = y2 - y1 = y1 - y 2
x2 - x 1 x1 - x 2
 Interpretation of Slope
• The slope of a line can be interpreted as the
change in the vertical (in y) for one unit change
in the horizontal(in x).
• For a positive slope, if x increases (decreases) by
one unit then y increases (decreases) by the value
of the slope.
• For a negative slope, if x increases (decreases) by
one unit then y decreases (increases) by the value
of the slope.
EXAMPLE:
Compute the slope of the line segment
connecting the points (4, 9) and (7, 18).
Interpret the slope.
Solution:
Using the slope formula,
m = 18 - 9 = 3.
7 -4
If x increases by one unit, then y increases by 3
units. Or, if x decreases by one unit, then y
decreases by 3 units.
EXAMPLE:
• Find the slope of the line that passes
through the points (-10, 16) and (-14,26).
Interpret the slope.
• Solution: Using the slope formula,
• slope m = 26 - 16 = - 2.5.
• -14 - (-10)
• If x increases by one unit, then y decreases
by 2.5 units. Or, if x decreases by one unit,
then y increases by 2.5 units.
Equation of Straight Lines
• Point-Slope Form
• Slope-Intercept Form
• General Form
 Point-Slope Form
An equation of a line that passes through
the point  x1 , y1  with slope m is given
by:
y  y1  m  x  x1 
Ex. Find an equation of the line that passes through (3,1)
and has slope m = 4
y  y1  m  x  x1 
y  1  4  x  3
y  1  4 x  12
4 x  y  11  0
 Slope-Intercept Form
An equation of a line with slope m and
y-intercept  0,b  is given by:

y  mx  b

Ex. Find an equation of the line that passes through

(0,–4 ) and has slope m  4 / 5.
y  mx  b
4
y  x4
5
 General Form
The general form of an equation of a line
is given by:
Ax  By  C  0
Where A, B, and C are constants and A and
B are not both zero.

*Note: An equation of a straight line is a linear equation

and every linear equation represents a straight line.
 Vertical Lines
Can be expressed in the
form x = a
x=3
 Horizontal Lines
Can be expressed in the
form y = b
y=2
 EXAMPLE :
1. Graph linear equation

Find the intercepts of the equation 2x + 3y = 6 and

graph the equation.

To find x-intercept, let y=0

2x + 3y = 6
2x + 3(0) = 6
x = 3, x-intercept is (3,0)

To find y-intercept, let x=0

2x + 3y = 6
2(0) + 3y = 6
y =2, y-intercept is (0,2)

Intercept x(3,0) and y (0,2) to graph the equation.

 EXAMPLE :
2. Graphing LE for a vertical line & finding the
equation of a vertical line

A vertical line is given by an equation of the form

x=a
Where (a,0) is the x-intercept

i) Graph the equation: x=3

x-intercept is (3,0) and the graph is a vertical line.

ii) Find an equation for the vertical line containing the

point (-1,6)
The x-coordinate of any point on a vertical line is
always the same, so its equation is x=-1.
 EXAMPLE :
3. Graphing LE for a horizontal line & finding the
equation of a horizontal line
A horizontal line is given by an equation of the form
y=b
Where (0,b) is the y-intercept

i) Graph the equation: y=3

y-intercept is (0,3) and the graph is a horizontal line.

ii) Find an equation for the horizontal line containing the

point (3,2)
The slope of a horizontal line is 0. To get an equation,
use point-slope form with m=0, and (3,2)
y-y1 = m(x – x1)
y-2 = 0(x-3)
y=2
 EXAMPLE :
4. Calculate & Interpret the slope of a line
y2 – y1 Rise (change in y)
Slope of a line: m = =
x2 – x1 Run (change in x)

i) Compute the slopes of the line

L1: P(2,3) Q1(-1,-2)
L2: P(2,3) Q2(3,-1)
L3: P(2,3) Q3(5,3)
L4: P(2,3) Q4(2,5)
 EXAMPLE :
5. Use the point-slope form of a line.

An equation of a non-vertical line with slope m that

contains (x1,y1) is

y-y1 = m(x – x1) ….Point-slope form

Find an equation of the line with slope 4 and containing

the point (1,2).

With m=4, x1=1, y1=2

y-y1 = m(x – x1)
y – 2 = 4(x – 1)
4x – y = 2…………General Equation
 EXAMPLE :
6. Find the equation of a line when two points are
given.

Find the equation of the line containing the points (2,3)

and (-4,5). Graph the line.

Since two points are given, compute the slope. Use one of
the point, lets say (2,3) and the slope m=-1/3 to get the
point-slope form of the equation of the line.

y-y1 = m(x – x1)

y – 3 = -1/3(x – 2)…..equation
y = -1/3x+11/3
 EXAMPLE :
7. Use the slope-intercept form of a line.

An equation of a line L with slope m and y-intercept (0,b)

is
y = mx + b ….slope-intercept form

Find the slope m and y-intercept (0,b) of the line

2x + 4y = 8. Graph the line.

To obtain the answers, transform the equation into its

slope-intercept form, need to solve y:
2x + 4y = 8
y = -1/2x + 2
So, the coefficient of x (-1/2) is the slope & the y-intercept
is (0,2)
 Summary for linear equation
To find an equation of the line, the form of equation to use
are as follows:
Given Use Equation
Point (x1,y1), Use Point-slope form y-y1 = m(x – x1)
Slope m

Two points If x1=x2 , the line is vertical x=x1

(x1,y1), (x2,y2)
If x1x2 , find the slope m:
m= y2 – y1
x2 – x 1
Then use the point-slope form

y-y1 = m(x – x1)

 Linear Function
A linear function can be expressed in the form

f ( x)  mx  b m and b are constants

Can be used for

• Simple Depreciation
• Linear Supply and Demand Functions
• Linear Cost, Revenue, and Profit Functions
 Supply and Demand
A demand equation expresses the
relationship between the unit price of a
commodity and the quantity demanded.

A supply equation expresses the

relationship between the unit price of a
commodity and the quantity supplied.
 Market Equilibrium
Market Equilibrium occurs when the quantity
produced is equal to the quantity demanded.
supply
price curve

demand
curve
x units

Equilibrium Point
 EXAMPLE
Demand & Supply
The supply and demand for flour have been estimated as being given
by the equations
S=0.8p+0.5 D=-0.4p+1.5
Where, p= dollar S & D=pound units of flour
Find the market price and graph the supply and demand equations.
Solution:
The market price p is the solution of the equation
S=D
0.8p+0.5 = -0.4p+1.5
1.2p = 1
p = 0.8333
At price of $0.83 per pound, supply and demand for flour are equal.
• Fixed cost is the sum of all costs that are
independent of the level of production.
• Variable cost is the sum of all costs that are
dependent on the level of output.
• Total cost = fixed cost + variable cost
• Total revenue = (price per unit) x
(number of units sold)
• Profit = total revenue − total cost
The Cost Function
C(x)=Fixed cost (FC)+Variable cost (VC) = F + cx

The Revenue Function

R(x)= selling price times units of product = sx

The Profit Function

P(x) = R(x) – C(x)= (s-c) x – F

Where
x – number of units of the commodity produced or sold.
s – selling prices
c – production cost / unit.
 EXAMPLE
Cost
A firm has fixed production costs of RM10 and variable production
costs of RM2 per unit produced.
i) Write down the equation of total cost function
ii) Graph the total cost function

Solution:
FC=RM10 VC=RM2x
Since TC=FC + VC, the total cost in producing x units;
C
TC = 10 + 2x

x
 EXAMPLE
Revenue
Suppose each cone ice is sold for RM2.50 irrespective of the
number of units sold.
i) Write down the equation of total revenue function
ii) Graph the total revenue function
Solution:
i) Total revenue is price multiplied by the number of units sold,
that is
TR = 2.5x
ii) Note that price is constant at RM2.50 irrespective of value of x
 EXAMPLE
Cost, Revenue & Profit
A manufacturer has a monthly fixed cost RM100 000 and a
production cost of RM14 for each unit produced. The product
sells for RM20 per unit.
i) What is cost function
ii) What is the revenue function
iii) What is profit function

Solution:
i) C(x) = 14x + 100 000
ii) R(x) = 20x
iii) P(x) = R(x) – C(x) = 20x – (14x + 100 000) = 6x – 100 000
 Break-Even Analysis
Point/position where a business does not make any profit
or loss, or in other words;
The break-even level of operation is the level of
production that results in no profit and no loss.
Total Revenue = Total Cost
Profit = Total Cost – Total Revenue = 0

break-even point Revenue

Dollars

profit
loss
Cost

Units
 EXAMPLE
Break Even Points
Mammoth candies private limited has daily fixed costs from
salaries and building operations of RM300. Each pound of
candy produced RM1 and is sold RM2.
i) Find the TC of production for Q pounds of candy
ii) Find the TR from selling Q pounds of candy
iii) What is the break-even points?

Solution:
i) TC = RM1Q + RM300
ii) TR = RM2Q
iii) Break-even point is the point where TR = TC,
2Q = RM1Q + 300
Q = 300
 EXAMPLE
Break Even Points
A manufacturer of video-game cartridges sells each cartridge
for RM19.95. The manufacturing costs of each cartridge is
RM14.95. Monthly fixed costs are RM8000. During the first
month of sales of a new game, how many cartridges must be
sold in order for the manufacturer to break-even?

Solution:
TC = RM14.95Q + 8000 TR = RM19.95Q
Break-even point is the point where TR = TC,
19.95Q = RM14.95Q + 8000
5Q = 8000
Q = 1600
 Applications of Equations

• Modeling: Translating relationships in the

problems to mathematical symbols.

Example - Mixture

A chemist must prepare 350 ml of a chemical

solution made up of two parts alcohol and three
parts acid. How much of each should be used?
Solution:
Let n = number of milliliters in each part.

2n  3n  350
5n  350
350
n  70
5
Each part has 70 ml.
Amount of alcohol = 2n = 2(70) = 140 ml
Amount of acid = 3n = 3(70) = 210 ml
 Example – Profit

The Anderson Company produces a product for

which the variable cost per unit is $6 and the fixed
cost is $80,000. Each unit has a selling price of
$10. Determine the number of units that must be
sold for the company to earn a profit of $60,000.
 Example – Profit
Solution:
Let q = number of sold units.
variable cost = 6q
total cost = 6q + 80,000
total revenue = 10q
Since profit = total revenue − total cost

60,000  10q  6q  80,000

140,000  4q
35,000  q
35,000 units must be sold to earn a profit of $60,000.
 Example – Investment
A total of $10,000 was invested in two business
ventures, A and B. At the end of the first year, A and
B yielded returns of 6%and 5.75 %, respectively, on
the original investments. How was the original
amount allocated if the total amount earned was
$588.75?
Solution:
Let x = amount ($) invested at 6%.

0.06 x  0.0575 10,000  x   588.75

0.06 x  575  0.0575 x  588.75
0.0025 x  13.75
x  5500

$5500 was invested at 6%

$10,000−$5500 = $4500 was invested at 5.75%.
 Exercise 1
Slope of a Line
The relationship between the taxi fare and the
number of miles traveled is linear. The taxi fare
is $12 at a distance of 40 miles and $22 at a
distance of 80 miles. What is the slope of the
line? What is meaning of the slope?
 Exercise 2
Slope of a Line

It costs the Glass Company $880 to

produce 100 mirrors and $980 to produce
120 mirrors. Assume that the cost-output
function is linear

• Find the slope of the cost-output line.

• How much does the production of one
mirror add to the total cost of production?
 Exercise 3
Linear Equation

Find the equation of the straight line

that passes through the points (3, 33)
and (6, 60).
 Exercise 4
Linear Equation

As sales change from $100 to $400, selling expense (eg.

advertising, promotional materials distributed, rent of the sales offices, etc.)
changes from $75 to $150. Assume that the relationship
between the selling expense and sales is linear,

(a) find the equation of the relationship.

(b) What is the selling expense if sales are $550?
(c) interpret the slope and the intercept of the equation.
 Exercise 5
Break-Even Analysis

A manufacturer produces items at a

daily cost of $0.75 per item and sells
them for $1 per item. The daily
operational overhead is $300. What is
the break-even point?