Linear equations:
Question 1: Suppose a business consultant charges a flat fee of $500 plus an hourly rate of
$75 for their services. Write the linear equation that represents the total cost (TC) in terms
of the number of hours (h) worked, and graph this equation on a coordinate plane. Identify
the slope and intercept.
Question 2: Consider two companies, A and B, with cost functions represented by the
equations TC A= 2Q + 1000 and TC B= 3Q , where Q is the quantity produced. Determine the
point of intersection for these cost functions and interpret the result in the context of the
businesses. What does the intersection point represent.
Question 3: A company manufactures two types of products, X and Y, with production costs
and revenue. The total cost of producing x units of X and y units of Y is given by TC = 3x + 2y
and the total revenue is TR = 5x + 4y. If the company produces 100 units of X and 50 units of
Y, find the total cost and revenue using the system of linear equations. Additionally, solve for
the break-even point, where total cost equals total revenue, and interpret its significance for
the company's profitability.
Functions:
1
Question 4: In a competitive market, the demand function is P = 75 − Q and the supply
2
1
function is P = Q + 16. Graph the demand and Supply functions on a coordinate plane.
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Determine the equilibrium quantity and price for this market. Interpret the economic
meaning of the equilibrium point. If the current price is lower than the equilibrium price,
analyze the resulting surplus or shortage in the market and discuss the consequences of any
imbalances between supply and demand.
Percentages:
Question 5: Suppose the price of a product increased by 20%, followed by a subsequent
decrease of 15%. Calculate the net percentage change in the price and interpret the result. If
the original price was $100, determine the final price after these two percentage changes.
Inflation:
Question 6: In a hypothetical economy, the prices of goods and services increased from $500
to $525 over the course of a year. Calculate the inflation rate for this period and explain its
significance.
Question 7: The Consumer Price Index (CPI) for a basket of goods and services in a certain
year is 150, while the base year CPI is 120. Calculate the inflation rate using the CPI formula
and interpret the result in terms of the purchasing power of the currency. Explain how the
CPI is used to measure changes in the cost of living.
Question 8: A worker's nominal wage increased from $20 per hour to $22 per hour, and the
inflation rate during the same period was 3%. Calculate the real wage and discuss the impact
of inflation on the purchasing power of the worker's income. Explain the difference between
nominal and real values and why it is important for economic analysis.
Quadratic functions:
Question 9: A company's profit function is given by P(x) = −3 x 2 + 120x − 500, where x is the
quantity of units sold. Graph the function. Determine the quantity of units that maximizes
the company's profit and find the maximum profit.
Revenue, cost, profit:
Question 10: A company sells a product for $20 per unit, and the quantity sold is given by
the function Q=100−2P, where P is the price. Calculate the total revenue function, TR and
graph it. Discuss the relationship between total revenue and quantity sold.
Question 11: A manufacturing company has a total cost function TC = 500 + 3Q + 0.02Q2,
where Q is the quantity of units produced. Identify and explain the fixed costs, variable
costs, and the total cost. Discuss how the cost structure evolves as production increases and
interpret the significance of each cost component.
Question 12: A company's profit is modeled by the function P(Q) = − Q2 + 40Q − 100, where
Q is the quantity of units produced. Determine the cost function TC and revenue function TR
given the fact that the cost of producing one unit is $140.
Linear programming:
Question 13: A company produces two types of products, X and Y, with unit profits of $5 and
$8, respectively. The production process for each unit of X requires 2 hours of labor and 3
hours for each unit of Y. The total available labor hours are 60 hours. Set up and solve a
linear programming problem to maximize the company's profit. Interpret the solution in the
context of the business and discuss any constraints that influence the optimal production
plan.
Logarithms:
Question 14: express the following as a single logarithm:
Question 15: Find x.
x x
5( 2 ¿ ¿ = 10
Question 16: Express y in terms of x:
Question 17: Consider the exponential function y = 2 x . Rewrite this function using
logarithmic notation. Discuss the relationship between exponential functions and
logarithmic expressions. Provide an example from economics or business where exponential
functions or their logarithmic equivalents are applicable.
Question 18: Graph the following: f ( x )=−2x+3 + 4. Discuss how understanding the graph of
exponential functions can be valuable in analyzing growth or decay in economic or financial
scenarios.
