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INTRODUCTORY MATHEMATICALINTRODUCTORY MATHEMATICAL
ANALYSISANALYSISFor Business, Economics, and the Life and Social Sciences
©2007 Pearson Education Asia
Chapter 3Chapter 3
Lines, Parabolas and SystemsLines, Parabolas and Systems
©2007 Pearson Education Asia
INTRODUCTORY MATHEMATICAL
ANALYSIS
0. Review of Algebra
1. Applications and More Algebra
2. Functions and Graphs
3. Lines, Parabolas, and Systems
4. Exponential and Logarithmic Functions
5. Mathematics of Finance
6. Matrix Algebra
7. Linear Programming
8. Introduction to Probability and Statistics
©2007 Pearson Education Asia
9. Additional Topics in Probability
10. Limits and Continuity
11. Differentiation
12. Additional Differentiation Topics
13. Curve Sketching
14. Integration
15. Methods and Applications of Integration
16. Continuous Random Variables
17. Multivariable Calculus
INTRODUCTORY MATHEMATICAL
ANALYSIS
©2007 Pearson Education Asia
• To develop the notion of slope and different forms of
equations of lines.
• To develop the notion of demand and supply curves and
to introduce linear functions.
• To sketch parabolas arising from quadratic functions.
• To solve systems of linear equations in both two and
three variables by using the technique of elimination by
addition or by substitution.
• To use substitution to solve nonlinear systems.
• To solve systems describing equilibrium and break-even
points.
Chapter 3: Lines, Parabolas and Systems
Chapter ObjectivesChapter Objectives
©2007 Pearson Education Asia
Lines
Applications and Linear Functions
Quadratic Functions
Systems of Linear Equations
Nonlinear Systems
Applications of Systems of Equations
3.1)
3.2)
3.3)
3.4)
3.5)
Chapter 3: Lines, Parabolas and Systems
Chapter OutlineChapter Outline
3.6)
©2007 Pearson Education Asia
Slope of a Line
• The slope of the line is for two different points
(x1, y1) and (x2, y2) is
Chapter 3: Lines, Parabolas and Systems
3.1 Line3.1 Line






=
−
−
=
changehorizontal
changevertical
12
12
xx
yy
m
©2007 Pearson Education Asia
The line in the figure shows the relationship
between the price p of a widget (in dollars) and the
quantity q of widgets (in thousands) that consumers
will buy at that price. Find and interpret the slope.
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 1 – Price-Quantity Relationship
©2007 Pearson Education Asia
Solution:
The slope is
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 1 – Price-Quantity Relationship
2
1
28
41
12
12
−=
−
−
=
−
−
=
qq
pp
m
Equation of line
• A point-slope form of an equation of the line
through (x1, y1) with slope m is
( )1212
12
12
xxmyy
m
xx
yy
−=−
=
−
−
©2007 Pearson Education Asia
Find an equation of the line passing through (−3, 8)
and (4, −2).
Solution:
The line has slope
Using a point-slope form with (−3, 8) gives
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 3 – Determining a Line from Two Points
( ) 7
10
34
82
−=
−−
−−
=m
( )[ ]
026710
3010567
3
7
10
8
=−+
−−=−
−−−=−
yx
xy
xy
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 5 – Find the Slope and y-intercept of a Line
• The slope-intercept form of an equation of the line
with slope m and y-intercept b is . cmxy +=
Find the slope and y-intercept of the line with
equation y = 5(3-2x).
Solution:
Rewrite the equation as
The slope is −10 and the y-intercept is 15.
( )
1510
1015
235
+−=
−=
−=
xy
xy
xy
©2007 Pearson Education Asia
a.Find a general linear form of the line whose
slope-intercept form is
Solution:
By clearing the fractions, we have
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 7 – Converting Forms of Equations of Lines
4
3
2
+−= xy
01232
04
3
2
=−+
=−+
yx
yx
©2007 Pearson Education Asia
b. Find the slope-intercept form of the line having a
general linear form
Solution:
We solve the given equation for y,
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 7 – Converting Forms of Equations of Lines
0243 =−+ yx
2
1
4
3
234
0243
+−=
+−=
=−+
xy
xy
yx
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Parallel and Perpendicular Lines
• Parallel Lines are two lines that have the same
slope.
• Perpendicular Lines are two lines with slopes
m1 and m2 perpendicular to each other only if
2
1
1
m
m −=
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 9 – Parallel and Perpendicular Lines
The figure shows two lines passing through (3, −2).
One is parallel to the line y = 3x + 1, and the other is
perpendicular to it. Find the equations of these lines.
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.1 Lines
Example 9 – Parallel and Perpendicular Lines
Solution:
The line through (3, −2) that is parallel to y = 3x + 1
also has slope 3.
For the line perpendicular to y = 3x + 1,
( ) ( )
113
932
332
−=
−=+
−=−−
xy
xy
xy
( ) ( )
1
3
1
1
3
1
2
3
3
1
2
−−=
+−=+
−−=−−
xy
xy
xy
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.2 Applications and Linear Functions3.2 Applications and Linear Functions
Example 1 – Production Levels
Suppose that a manufacturer uses 100 lb of material
to produce products A and B, which require 4 lb and
2 lb of material per unit, respectively.
Solution:
If x and y denote the number of units produced of A
and B, respectively,
Solving for y gives
0,where10024 ≥=+ yxyx
502 +−= xy
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.2 Applications and Linear Functions
Demand and Supply Curves
• Demand and supply curves have the following
trends:
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.2 Applications and Linear Functions
Example 3 – Graphing Linear Functions
Linear Functions
• A function f is a linear function which can be
written as ( ) 0where ≠+= abaxxf
Graph and .
Solution:
( ) 12 −= xxf ( )
3
215 t
tg
−
=
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.2 Applications and Linear Functions
Example 5 – Determining a Linear Function
If y = f(x) is a linear function such that f(−2) = 6 and
f(1) = −3, find f(x).
Solution:
The slope is .
Using a point-slope form:
( )
3
21
63
12
12
−=
−−
−−
=
−
−
=
xx
yy
m
( )
( )[ ]
( ) xxf
xy
xy
xxmyy
3
3
236
11
−=
−=
−−−=−
−=−
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.3 Quadratic Functions3.3 Quadratic Functions
Example 1 – Graphing a Quadratic Function
Graph the quadratic function .
Solution: The vertex is .
• Quadratic function is written as
where a, b and c are constants and
( ) 22
++= bxaxxf
0≠a
( ) 1242
+−−= xxxf
( )
2
12
4
2
−=
−
−
−=−
a
b
( )( )
2and6
260
1240 2
−=
−+=
+−−=
x
xx
xx
The points are
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.3 Quadratic Functions
Example 3 – Graphing a Quadratic Function
Graph the quadratic function .
Solution:
( ) 762
+−= xxxg
( )
3
12
6
2
=−=−
a
b
23 ±=x
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.3 Quadratic Functions
Example 5 – Finding and Graphing an Inverse
From determine the inverse
function for a = 2, b = 2, and c = 3.
Solution:
( ) cbxaxxfy ++== 2
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.4 Systems of Linear Equations3.4 Systems of Linear Equations
Two-Variable Systems
• There are three different linear systems:
• Two methods to solve simultaneous equations:
a) elimination by addition
b) elimination by substitution
Linear system
(one solution)
Linear system
(no solution)
Linear system
(many solutions)
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.4 Systems of Linear Equations
Example 1 – Elimination-by-Addition Method
Use elimination by addition to solve the system.
Solution: Make the y-component the same.
Adding the two equations, we get . Use to
find
Thus,



=+
=−
323
1343
xy
yx



=+
=−
12128
39129
yx
yx
3=x
( )
1
391239
−=
=−
y
y



−=
=
1
3
y
x
3=x
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.4 Systems of Linear Equations
Example 3 – A Linear System with Infinitely Many Solutions
Solve
Solution: Make the x-component the same.
Adding the two equations, we get .
The complete solution is




=+
=+
1
2
5
2
1
25
yx
yx



−=−+−
=+
25
25
yx
yx
00 =
ry
rx
=
−= 52
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.4 Systems of Linear Equations
Example 5 – Solving a Three-Variable Linear System
Solve
Solution: By substitution, we get
Since y = -5 + z, we can find z = 3 and y = -2. Thus,





−=−−
=++−
=++
63
122
32
zyx
zyx
zyx





−+=
−=−
=+
63
5
1573
zyx
zy
zy





=
−=
=
1
2
3
x
y
z
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.4 Systems of Linear Equations
Example 7 – Two-Parameter Family of Solutions
Solve the system
Solution:
Multiply the 2nd
equation by 1/2 and add to the 1st
equation,
Setting y = r and z = s, the solutions are



=++
=++
8242
42
zyx
zyx



=
=++
00
42 zyx
sz
ry
srx
=
=
−−= 24
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.5 Nonlinear Systems3.5 Nonlinear Systems
Example 1 – Solving a Nonlinear System
• A system of equations with at least one nonlinear
equation is called a nonlinear system.
Solve (1)
(2)
Solution: Substitute Eq (2) into (1),



=+−
=−+−
013
0722
yx
yxx
( )
( )( )
7or8
2or3
023
06
07132
2
2
=−=
=−=
=−+
=−+
=−++−
yy
xx
xx
xx
xxx
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations3.6 Applications of Systems of Equations
Equilibrium
• The point of equilibrium is where demand and
supply curves intersect.
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Example 1 – Tax Effect on Equilibrium
Let be the supply equation for a
manufacturer’s product, and suppose the demand
equation is .
a. If a tax of $1.50 per unit is to be imposed on the
manufacturer, how will the original equilibrium price
be affected if the demand remains the same?
b. Determine the total revenue obtained by the
manufacturer at the equilibrium point both before and
after the tax.
50
100
8
+= qp
65
100
7
+−= qp
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Example 1 – Tax Effect on Equilibrium
Solution:
a. By substitution,
and
After new tax,
and
100
50
100
8
65
100
7
=
+=+−
q
qq ( ) 5850100
100
8
=+=p
( ) 70.5850.51100
100
8
=+=p
( )
90
65
100
7
50.51100
100
8
=
+−=+
q
q
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Example 1 – Tax Effect on Equilibrium
Solution:
b. Total revenue given by
After tax,
( )( ) 580010058 === pqyTR
( )( ) 52839070.58 === pqyTR
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Break-Even Points
• Profit (or loss) = total revenue(TR) – total cost(TC)
• Total cost = variable cost + fixed cost
• The break-even point is where TR = TC.
FCVCTC yyy +=
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Example 3 – Break-Even Point, Profit, and Loss
A manufacturer sells a product at $8 per unit, selling
all that is produced. Fixed cost is $5000 and variable
cost per unit is 22/9 (dollars).
a. Find the total output and revenue at the break-even
point.
b. Find the profit when 1800 units are produced.
c. Find the loss when 450 units are produced.
d. Find the output required to obtain a profit of
$10,000.
©2007 Pearson Education Asia
Chapter 3: Lines, Parabolas and Systems
3.6 Applications of Systems of Equations
Example 3 – Break-Even Point, Profit, and Loss
Solution:
a. We have
At break-even point,
and
b.
The profit is $5000.
5000
9
22
8
+=+=
=
qyyy
qy
FCVCTC
TR
900
5000
9
22
8
=
+=
=
q
qq
yy TCTR
( ) 72009008 ==TRy
( ) ( ) 500050001800
9
22
18008 =





+−=− TCTR yy

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Chapter 3 - Lines , Parabolas and Systems

  • 1. INTRODUCTORY MATHEMATICALINTRODUCTORY MATHEMATICAL ANALYSISANALYSISFor Business, Economics, and the Life and Social Sciences ©2007 Pearson Education Asia Chapter 3Chapter 3 Lines, Parabolas and SystemsLines, Parabolas and Systems
  • 2. ©2007 Pearson Education Asia INTRODUCTORY MATHEMATICAL ANALYSIS 0. Review of Algebra 1. Applications and More Algebra 2. Functions and Graphs 3. Lines, Parabolas, and Systems 4. Exponential and Logarithmic Functions 5. Mathematics of Finance 6. Matrix Algebra 7. Linear Programming 8. Introduction to Probability and Statistics
  • 3. ©2007 Pearson Education Asia 9. Additional Topics in Probability 10. Limits and Continuity 11. Differentiation 12. Additional Differentiation Topics 13. Curve Sketching 14. Integration 15. Methods and Applications of Integration 16. Continuous Random Variables 17. Multivariable Calculus INTRODUCTORY MATHEMATICAL ANALYSIS
  • 4. ©2007 Pearson Education Asia • To develop the notion of slope and different forms of equations of lines. • To develop the notion of demand and supply curves and to introduce linear functions. • To sketch parabolas arising from quadratic functions. • To solve systems of linear equations in both two and three variables by using the technique of elimination by addition or by substitution. • To use substitution to solve nonlinear systems. • To solve systems describing equilibrium and break-even points. Chapter 3: Lines, Parabolas and Systems Chapter ObjectivesChapter Objectives
  • 5. ©2007 Pearson Education Asia Lines Applications and Linear Functions Quadratic Functions Systems of Linear Equations Nonlinear Systems Applications of Systems of Equations 3.1) 3.2) 3.3) 3.4) 3.5) Chapter 3: Lines, Parabolas and Systems Chapter OutlineChapter Outline 3.6)
  • 6. ©2007 Pearson Education Asia Slope of a Line • The slope of the line is for two different points (x1, y1) and (x2, y2) is Chapter 3: Lines, Parabolas and Systems 3.1 Line3.1 Line       = − − = changehorizontal changevertical 12 12 xx yy m
  • 7. ©2007 Pearson Education Asia The line in the figure shows the relationship between the price p of a widget (in dollars) and the quantity q of widgets (in thousands) that consumers will buy at that price. Find and interpret the slope. Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 1 – Price-Quantity Relationship
  • 8. ©2007 Pearson Education Asia Solution: The slope is Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 1 – Price-Quantity Relationship 2 1 28 41 12 12 −= − − = − − = qq pp m Equation of line • A point-slope form of an equation of the line through (x1, y1) with slope m is ( )1212 12 12 xxmyy m xx yy −=− = − −
  • 9. ©2007 Pearson Education Asia Find an equation of the line passing through (−3, 8) and (4, −2). Solution: The line has slope Using a point-slope form with (−3, 8) gives Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 3 – Determining a Line from Two Points ( ) 7 10 34 82 −= −− −− =m ( )[ ] 026710 3010567 3 7 10 8 =−+ −−=− −−−=− yx xy xy
  • 10. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 5 – Find the Slope and y-intercept of a Line • The slope-intercept form of an equation of the line with slope m and y-intercept b is . cmxy += Find the slope and y-intercept of the line with equation y = 5(3-2x). Solution: Rewrite the equation as The slope is −10 and the y-intercept is 15. ( ) 1510 1015 235 +−= −= −= xy xy xy
  • 11. ©2007 Pearson Education Asia a.Find a general linear form of the line whose slope-intercept form is Solution: By clearing the fractions, we have Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 7 – Converting Forms of Equations of Lines 4 3 2 +−= xy 01232 04 3 2 =−+ =−+ yx yx
  • 12. ©2007 Pearson Education Asia b. Find the slope-intercept form of the line having a general linear form Solution: We solve the given equation for y, Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 7 – Converting Forms of Equations of Lines 0243 =−+ yx 2 1 4 3 234 0243 +−= +−= =−+ xy xy yx
  • 13. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.1 Lines Parallel and Perpendicular Lines • Parallel Lines are two lines that have the same slope. • Perpendicular Lines are two lines with slopes m1 and m2 perpendicular to each other only if 2 1 1 m m −=
  • 14. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 9 – Parallel and Perpendicular Lines The figure shows two lines passing through (3, −2). One is parallel to the line y = 3x + 1, and the other is perpendicular to it. Find the equations of these lines.
  • 15. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.1 Lines Example 9 – Parallel and Perpendicular Lines Solution: The line through (3, −2) that is parallel to y = 3x + 1 also has slope 3. For the line perpendicular to y = 3x + 1, ( ) ( ) 113 932 332 −= −=+ −=−− xy xy xy ( ) ( ) 1 3 1 1 3 1 2 3 3 1 2 −−= +−=+ −−=−− xy xy xy
  • 16. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.2 Applications and Linear Functions3.2 Applications and Linear Functions Example 1 – Production Levels Suppose that a manufacturer uses 100 lb of material to produce products A and B, which require 4 lb and 2 lb of material per unit, respectively. Solution: If x and y denote the number of units produced of A and B, respectively, Solving for y gives 0,where10024 ≥=+ yxyx 502 +−= xy
  • 17. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.2 Applications and Linear Functions Demand and Supply Curves • Demand and supply curves have the following trends:
  • 18. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.2 Applications and Linear Functions Example 3 – Graphing Linear Functions Linear Functions • A function f is a linear function which can be written as ( ) 0where ≠+= abaxxf Graph and . Solution: ( ) 12 −= xxf ( ) 3 215 t tg − =
  • 19. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.2 Applications and Linear Functions Example 5 – Determining a Linear Function If y = f(x) is a linear function such that f(−2) = 6 and f(1) = −3, find f(x). Solution: The slope is . Using a point-slope form: ( ) 3 21 63 12 12 −= −− −− = − − = xx yy m ( ) ( )[ ] ( ) xxf xy xy xxmyy 3 3 236 11 −= −= −−−=− −=−
  • 20. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.3 Quadratic Functions3.3 Quadratic Functions Example 1 – Graphing a Quadratic Function Graph the quadratic function . Solution: The vertex is . • Quadratic function is written as where a, b and c are constants and ( ) 22 ++= bxaxxf 0≠a ( ) 1242 +−−= xxxf ( ) 2 12 4 2 −= − − −=− a b ( )( ) 2and6 260 1240 2 −= −+= +−−= x xx xx The points are
  • 21. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.3 Quadratic Functions Example 3 – Graphing a Quadratic Function Graph the quadratic function . Solution: ( ) 762 +−= xxxg ( ) 3 12 6 2 =−=− a b 23 ±=x
  • 22. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.3 Quadratic Functions Example 5 – Finding and Graphing an Inverse From determine the inverse function for a = 2, b = 2, and c = 3. Solution: ( ) cbxaxxfy ++== 2
  • 23. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.4 Systems of Linear Equations3.4 Systems of Linear Equations Two-Variable Systems • There are three different linear systems: • Two methods to solve simultaneous equations: a) elimination by addition b) elimination by substitution Linear system (one solution) Linear system (no solution) Linear system (many solutions)
  • 24. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.4 Systems of Linear Equations Example 1 – Elimination-by-Addition Method Use elimination by addition to solve the system. Solution: Make the y-component the same. Adding the two equations, we get . Use to find Thus,    =+ =− 323 1343 xy yx    =+ =− 12128 39129 yx yx 3=x ( ) 1 391239 −= =− y y    −= = 1 3 y x 3=x
  • 25. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.4 Systems of Linear Equations Example 3 – A Linear System with Infinitely Many Solutions Solve Solution: Make the x-component the same. Adding the two equations, we get . The complete solution is     =+ =+ 1 2 5 2 1 25 yx yx    −=−+− =+ 25 25 yx yx 00 = ry rx = −= 52
  • 26. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.4 Systems of Linear Equations Example 5 – Solving a Three-Variable Linear System Solve Solution: By substitution, we get Since y = -5 + z, we can find z = 3 and y = -2. Thus,      −=−− =++− =++ 63 122 32 zyx zyx zyx      −+= −=− =+ 63 5 1573 zyx zy zy      = −= = 1 2 3 x y z
  • 27. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.4 Systems of Linear Equations Example 7 – Two-Parameter Family of Solutions Solve the system Solution: Multiply the 2nd equation by 1/2 and add to the 1st equation, Setting y = r and z = s, the solutions are    =++ =++ 8242 42 zyx zyx    = =++ 00 42 zyx sz ry srx = = −−= 24
  • 28. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.5 Nonlinear Systems3.5 Nonlinear Systems Example 1 – Solving a Nonlinear System • A system of equations with at least one nonlinear equation is called a nonlinear system. Solve (1) (2) Solution: Substitute Eq (2) into (1),    =+− =−+− 013 0722 yx yxx ( ) ( )( ) 7or8 2or3 023 06 07132 2 2 =−= =−= =−+ =−+ =−++− yy xx xx xx xxx
  • 29. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations3.6 Applications of Systems of Equations Equilibrium • The point of equilibrium is where demand and supply curves intersect.
  • 30. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Example 1 – Tax Effect on Equilibrium Let be the supply equation for a manufacturer’s product, and suppose the demand equation is . a. If a tax of $1.50 per unit is to be imposed on the manufacturer, how will the original equilibrium price be affected if the demand remains the same? b. Determine the total revenue obtained by the manufacturer at the equilibrium point both before and after the tax. 50 100 8 += qp 65 100 7 +−= qp
  • 31. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Example 1 – Tax Effect on Equilibrium Solution: a. By substitution, and After new tax, and 100 50 100 8 65 100 7 = +=+− q qq ( ) 5850100 100 8 =+=p ( ) 70.5850.51100 100 8 =+=p ( ) 90 65 100 7 50.51100 100 8 = +−=+ q q
  • 32. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Example 1 – Tax Effect on Equilibrium Solution: b. Total revenue given by After tax, ( )( ) 580010058 === pqyTR ( )( ) 52839070.58 === pqyTR
  • 33. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Break-Even Points • Profit (or loss) = total revenue(TR) – total cost(TC) • Total cost = variable cost + fixed cost • The break-even point is where TR = TC. FCVCTC yyy +=
  • 34. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Example 3 – Break-Even Point, Profit, and Loss A manufacturer sells a product at $8 per unit, selling all that is produced. Fixed cost is $5000 and variable cost per unit is 22/9 (dollars). a. Find the total output and revenue at the break-even point. b. Find the profit when 1800 units are produced. c. Find the loss when 450 units are produced. d. Find the output required to obtain a profit of $10,000.
  • 35. ©2007 Pearson Education Asia Chapter 3: Lines, Parabolas and Systems 3.6 Applications of Systems of Equations Example 3 – Break-Even Point, Profit, and Loss Solution: a. We have At break-even point, and b. The profit is $5000. 5000 9 22 8 +=+= = qyyy qy FCVCTC TR 900 5000 9 22 8 = += = q qq yy TCTR ( ) 72009008 ==TRy ( ) ( ) 500050001800 9 22 18008 =      +−=− TCTR yy