Lecture 12(2/08/2011)

Topic 1: Functions and Graphs

PREDICTION:
Example:
In 1990 the cost of an average home in the Midwest was $75,000. In 1994,
the cost was $87,000. Assuming that the relationship between time and cost
is linear, develop a formula for predicting the cost of an average home in
1999.
Solution:
Let x represent the year and y represent the cost. Two points on the graph of
equation relating x and y are (1990, 75000) and (1994, 87000).
As we have assumed the relation between x and y to be linear, the slope of
this line is given by

y y 87 ,000 75,000

3000
x x
1994 1990
2

Using this fact and the point (1990, 75000), the point-slope form of the
equation of line is

y 75,000 3000 ( x 1990 )

For x = 1999, the cost of an average house will be

y 75,000 3000 (1999 1990 )

y 75,000 27,000
y 102 ,000

Exercise:
1. The average SAT scores of incoming freshmen at a Midwestern college have
been declining at a constant rate in recent years. In 1990 the average SAT
score was 592, while in 1994 the average SAT score was only 564. What will
be the average SAT score of incoming freshmen be in 1998?

2. Oil is pumped from an oil field at a constant rate each year, so that its oil
reserves have been decreasing linearly with time. Geologists estimate that
the field reserves were 400,000 barrels in 1980 and 320,000 barrels in 1990.
If the trend continues, when will the oil well dry out?
Mixture Problems:
Example:
A store that specializes in selling nuts sells cashews for $5 per pound and
peanuts for $2 per pound. At the end of the month the manager finds that the
peanuts are not selling well. In order to sell 30 pounds of peanuts more
quickly, the manager decides to mix the 30 pounds of peanuts with some
cashews and sell the mixture of peanuts and cashews for $3 a pound. How
many pounds of cashew should be mixed with the peanuts so that the
revenue remains the same?
Solution:
Let x = number of pounds of cashews
y = number of pounds of the mixture
y = x + 30
(Price per pound)(Pounds of Cashews)+(Price per pound)(Pounds of peanuts)
= (Price per pound)(Pounds of mixture)

5 x 2(30) 3 y
5
x 20 y
3
Since the number of pounds of the mixture is the same in each case, we have

5
x 20 x 30
3
2
x 10
3
x 15
The manager should mix 15 pounds of cashews with 30 pounds of peanuts.
Exercise:
1. Sweet Delight Candies sells boxes of candy consisting of creams and
caramels. Each box sells for $8.00 and holds 50 pieces of candy. If the
caramel cost $0.10 to produce and the creams cost $0.20 to produce, how
many caramels and creams should be in each box for no profit or no loss?
2. One solution is 15% acidic and the other is 5% acidic. How many cubic
centimeters of each should be mixed to obtain 100 cubic centimeters of a
solution that is 8% acidic?
Supply and Demand:
The supply equation is used to specify the amount of a particular commodity
that sellers are willing to offer in the market at various prices. The demand
equation specifies the amount of a particular commodity that the buyers are
willing to purchase at various prices. The market price is defined as the price
at which supply and demand are equal (point of intersection)

Example:
The supply and Demand for flour have been estimated as being given by the
equation

S 0.8 p 0.5

D 0.4 p 1.5

where p is measured in dollars. S and D are measured in pound units of flour.

Find the market price.
Solution:
The market price p is the solution of the equation.

SD
0.8 p 0.5 0.4 p 1.5
1.2 p 1
p 0.83
Thus, at a price of $0.83 per pound, supply and demand for flour are equal.
Exercise:

1.

Find the market price for the given pair of supply and demand equation

S p 1
D 3 p

(a)

S 40 p 300
D 1000 30 p
(b)

2.

S 2p 5
For a certain commodity the supply equation is given by
. At a
price of $1, 19 units of the commodity are demanded. If the demand equation
is linear and the market price is $3, find the demand equation.