Math 1090.04 Homework 03
Spring 2013
Name
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Student ID Number:
Instructions:
Each student is expected to follow the Homework Guidelines
described on the course webpage
• Solve the Part A Problems on your own paper.
• Solve the Part B problems in this handout.
• Attach this handout to the front of your homework assignment
Reading Assignment:
• Chapter 1.5
• Chapter 1.6
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-
Text pages 41-26
Text pages 49-56
Part A:
• Chapter 1.5 Text pages: 46-48
Problems: 11-20, 21-25, 31-40, 41-44, 46-47, 50-56, 67-70, 71-74
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• Chapter 1.6 Text pages: 57-60
Problems: 1, 3, 5, 7, 8, 9, 11-14, 16-17, 20, 23, 28
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Homework 03, Page 4 of 10
MathlO9O.004
30 January 2013
Chapter 1.6: Business Applications
4. Concert promoters are willing to sell tickets at a price of $8 each if they can sell 6040
tickets; however, if they can only sell 6250 tickets they insist on charging $50 each. At.
the same time, 7250 music fans are willing to purchase a ticket for $10 each, hut only
7000 fans are willing to purchase a ticket if they are $20 each.
(a) Find the Demand equation described by this scenario:
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30 January 2013
Homework 03, Page 5 of 10
vIath 1090.004
(c) Estimate the market eciuilibriiim by graphing the supply and demand ecluations on
the same graph.
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Figure 1: Problem 4
Record your estimate here:
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Homework 03, Page 7 of 10
MathlO9O.004
30 January 2013
5. A gasoline station has weekly costs and revenue (the money taken in by the station) that
are functions of the number of gallons of gasoline purchased and sold. If x gallons are
1.2x + 1080 and weekly revenue
purchased and sold, weekly costs are given by C()
by R(x) = 1.6r
(a) What are the fixed costs? What does this number tell you?
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(b) What are the variable costs? What does this number tell you?
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(c) What is the marginal profit? What does this number tell you?
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(d) What is the marginal revenue? What does this number tell you?
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(e) What is the profit from selling 100 items? How would you interpret this solution?
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Homework 03, Page 8 of 10
Math 1090.004
30 January 2013
(f) What is the profit from selling 1000 items? Comparing this to (e), how would you
interpret the answer?
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(g) Graph the appropriate equations to estimate the break even point
(Hint: Convert decimals to fractions)
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Figure 2: Problem 5
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(h) Calculate the breakeven point
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(i) How does your calculated break-even point compare to your estimate? If they are
different can you explain why?
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Homework 03, Page 10 of 10
MathlO9O.004
30 January 2013
*
6. Extra Credit Challenge: You drew a graph in the problem above to estimate the
break even point there is another graph you can draw to come up with the same esti
mate What is it?
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If you figure it out: Include your graph and compare this estimate to your actual solution
and your previous estimate.
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Figure 3: Problem 6
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