(1) The annual salary (let y = annual salary) of an assistant at Clooney's Dreamhome Realty is 20,000

plus $1,500 times the assistant's years of experience (let x = years of experience). Express y as a
function of x. What would be the salary for a assistant with 10 years of experience? Is salary a linear
function of experience?
y = 20000 + 1500x
When x = 10, y = 35000.
In this example, salary is a linear function of experience.

(2) The total time in minutes (let y = total time) that Owen's secretary, Britney Swift, needs to
complete a stack of closings is 200 times the square root of the number of closings (let x = number of
closings). Express y as a function of x. How long would it take Britney to complete 16 closings? Is the
time needed a linear function of the number of closings?
y = 200 * √x
When x = 16, y = 800.
In this example, the time needed is not a linear function of the number of closings.
(1) Suppose that it costs $100 to place an order and that the store sells an average of 400 digital
cameras per month. If it costs $5 to hold a camera in inventory for a year, how many cameras should
be ordered? Is the order quantity a linear function of D, K, and h?
438 cameras should be ordered. Note Annual demand = 12*400=4800.
The order quantity is not a linear function of D, K, and h.

(2) Tina is opening a lemonade stand to make money to pay for her trip to the state soccer
championship. At the supermarket, Tina buys lemons for 10 cents each and sugar for $2.50 per pound
— her only lemonade-related expenses. If Tina buys L lemons and S pounds of sugar, write a function
that expresses Tina's expenses. If Tina buys 40 lemons and 10 pounds of sugar this month, what are
her monthly expenses? Are her expenses a linear function of lemons and sugar purchased?
y = .1L + 2.5S
When L = 40 and S = 10, y = 29.
The expenses are a linear function of the lemons and sugar purchased.
(1) Refer back to the assumptions outlined in the section on finding the breakeven point. How many
patients would Vivian have to see in a month to earn a profit of $10,000?
750 patients

(2) Gregory can mow the family's lawn in 3 hours, and Jennifer can mow it in 4 hours. If they team up
to mow the lawn together, how long will it take to finish mowing the lawn? Hint: If they mow for x
hours, Gregory will mow a fraction of the lawn that can be expressed as x/3.
1.714 hours
Solve x/3 + x/4 = 1
Multiplying both sides by 12 we find 7x = 12 or x = 12/7 hours.
Graph the following points in the x-y plane
x y
-3 -5 5
2 -4
1 2 4
-3 2
3

4; 2 2 3; 2

0
-5 -4 -3 -2 -1 0 1 2 3 4 5

-1

-2

-3

-4 2; -4

1; -5 -5
4 5
(1) Demand for a product is 500 units, and the price is $100. If the price increases to $101, estimated
demand will drop to 490 units. Assuming a straight line relationship between supply and demand,
graph the equation of the line relating supply and demand.
y = -10x + 1500 price (x)
75
800 80
85
700
90
600 95
500 100
105
Demand

400
110
300
200
100
0
$70 $75 $80 $85 $90 $95 $100 $105 $110 $115
Price
demand (y)
750
700
650
600
550
500
450
400
(2) Workers in Fredonia can produce either 20 gallons of wine per day or 50 pounds of cloth per day.
Let x = gallons of wine produced per day and y = pounds of cloth produced per day. If there are 1000
workers, what straight line (together with the x and y axes) delineates the boundary of the
combinations of wine and cloth that can be produced if the workforce is fully utilized? Graph the
region in the x-y plane that represents all combinations of wine and cloth that can be produced.
y = -2.5x + 50000 wine (x)
0
120000 5000
10000
100000 15000
20000

80000
workers needed workers needed=(x/20)
Cloth (pounds)

we need this <=1000

60000

40000 or (x/20)+(y/50)<=1000
Multiplying both sides b
we get
20000 5x+2y<=100,000
dividing both sides by 2
0 2.5x+y<=50000
0 20000 40000 60000 80000 100000 120000 Then graph 2.5x+y=500
Wine (gallons) and shade all points in
below this line.
 cloth (y)
50000
37500
25000
12500
0

workers needed=(x/20)+(y/50)
we need this <=1000

or (x/20)+(y/50)<=1000
Multiplying both sides by 100

5x+2y<=100,000
dividing both sides by 2 we get
2.5x+y<=50000
Then graph 2.5x+y=50000
and shade all points in 1st quadrant
below this line.
(3) If the number of workers were increased, what would happen to your answer to exercise 2?
The feasible region would congtain more points. For example, with 2000 workers:

y = -2.5x + 100000 wine (x)

0
120000 5000
10000
15000
100000
20000
25000
80000 30000
35000
Cloth (pounds)

60000

40000
40000

20000

0
0 20000 40000 60000 80000 100000 120000
Wine (gallons)
cloth (y)
100000
87500
75000
62500
50000
37500
25000
12500

0
(4) If the workers in Fredonia became more efficient at producing wine, what would happen to the
slope of the line in exercise 2? If Fredonian workers instead became more efficient at producing cloth,
what would happen to the slope of the line in exercise 2?

Under the assumptions in exercise (2), the slope of the line is -2.5
If a single worker could produce the same amount of cloth (50 pounds) but, say, 30 gallons of
wine, the points (0, 50) and (30, 0) would fall on the line, and its slope would thus be
(50-0)/(0-30)
or
-1.66666666666667

If a single worker could produce more cloth (say, 80 pounds) but the same amount of wine as in
exercise (2), the points (0, 80) and (20, 0) would fall on the line, and its slope would thus be
(80-0)/(0-20)
or
-4
(5) Michael Johnson is thinking about joining a country club that charges $5000 per year for
membership and $30 per round of golf. Draw the straight line that expresses (for x ≥ 1) the
relationship between rounds of golf played, or x, and the annual amount, y, that Michael must pay to
the country club. Why aren't all the points on the straight line relevant to expressing this
relationship?
y = 5000 + 30x
Only those points on the line where x (rounds played) is a whole number are relevant.

10000

9000

8000

7000
Annual amount paid

6000

5000

4000

3000

2000

1000

0
0 20 40 60 80 100 120 140 160
Rounds played
rounds played (x) annual amount paid (y)
1 5030
20 5600
40 6200
60 6800
80 7400
100 8000
120 8600
140 9200

160 9800
(1) Tina is trying to determine the prices in dollars she should charge for lemonade (PL) and orange
juice (PO) at her lemonade stand. She believes she can sell 50 + 10(PL) - 20(PO) glasses of orange juice
per day and 100 - 30(PL) + 10(PO) glasses of lemonade per day. If Tina wants to sell 20 glasses of
orange juice per day and 90 glasses of lemonade per day, what prices should she charge?
oj sales = 50 + 10(PL) - 20(PO)
20 = 50 + 10(PL) - 20(PO)
20(PO) = 30 + 10(PL)
PO = 1.5 + .5(PL)

lemonade sales = 100 - 30(PL) + 10(PO)

90 = 100 - 30(PL) + 10(PO)
90 = 100 - 30(PL) + 10(1.5 + .5(PL))
-10 = -30(PL) + 15 + 5(PL)
-25 = -25(PL)
PL = 1

recall that for oj sales of 20 glasses per day,

20 = 50 + 10(PL) - 20(PO)
substituing PL = 1 yields
20 = 50 + 10(1) - 20(PO)
20 = 60 - 20(PO)
-40 = -20(PO)
PO = 2
Check:
When
PL = 1
PO = 2

oj sales: 20
lemonade sales: 90
(2) Owen and Sarah's pre-tax income is $100,000. Suppose that state income tax is 10% of taxable
state income and that federal income tax is 10/19 of taxable federal income. Taxable federal income
is $100,000 less state income tax. Taxable state income is $100,000 less federal income tax. How
much will Owen and Sarah pay in state and federal income tax? Hint: Let TF = taxable federal income
and TS = taxable state income.
state income tax = .1(TS)
federal income tax = 10/19(TF)
TF = 100000 - state income tax
TS = 100000 - federal income tax

TF = 100000 - .1(TS)
TF = 100000 - .1(100000 - federal income tax)
TF = 100000 - .1(100000 - (10/19(TF)))
TF = 100000 - 10000 + 1/19(TF)
TF - 1/19(TF) = 90000
18/19(TF) = 90000
TF = 95000
federal income tax = 10/19(95000) = 50000
TS = 100000 - 50000 = 50000
state income tax = .1(50000) = 5000
(1) Find all values of x that satisfy 4x - 3 ≥ 13.
4x - 3 >= 13
4x >= 16
x >= 4

(2) Find all values of x that satisfy -3x + 4 < 4x - 24.

-3x + 4 < 4x - 24
-3x < 4x - 28
-7x < -28
x>4
(1) Graph the set of points satisfying 2x - y ≥ 4.
2x - y ≥ 4 x y
2x >= y + 4 0 -4
2x - 4 >= y 5 6
y <= 2x - 4 10 16
15 26
20 36
25 46
40

35

30

25

20

y <= 2x - 4
15

10

0
0 5 10 15 20 25 30 35 40
(2) Sarah and Owen have a 100-acre farm in California on which they can grow cotton and grapes. It
takes 4 hours of labor to plant an acre of cotton and 10 hours of labor to plant an acre of grapes. They
have 500 hours of labor available for planting crops. Graph the set of points representing the set of
possible allocations of land between grapes and cotton.
Let x = acres of cotton and y = acres of grapes x y
0 50
Limit on maximum working hours: 25 40
4x + 10y ≤ 500 50 30
10y ≤ 500 - 4x 75 20
y ≤ 50 - .4x 100 10
125 0
Limit on maximum number of acres:
x + y ≤ 100
y ≤ 100 - x
 120

100

80
Acres of Grapes

x + y ≤ 100
60
4x + 10y ≤ 500

40

20

0
0 20 40 60 80 100 120
Acres of Corn

Constraint of Hours Constraint of Acres

(1) What is the degree of the following polynomial: x5 - 4x3 + 2x2?
This is a fifth-degree polynomial.

(2) Graph the curve f(x) = x 2 - 6x + 2.

x y
-1 9
x^2 - 6x +2 0 2
1 -3
10
2 -6
3 -7
8
4 -6
5 -3
6 6 2
7 9
4

0
-8 -6 -4 -2 0 2 4 6 8 10
-2

-4

-6

-8
(3) Find all roots of the equation 2x 2 - 5x + 2 = 0.
a = 2; b = -5; c = 2
a: 2
b: -5
c: 2
b2 - 4ac: 9

(-b + √b2 - 4ac)/2a (-b - √b2 - 4ac)/2a

2 0.5

check:
x
2
0.5
>0; thus the equation has two roots.

2x2 - 5x + 2
0
0
(4) It costs $0.30 for Tina to produce a glass of lemonade. If she charges p dollars for one glass, she
believes she can sell 50 - p glasses of lemonade in a day. Find a quadratic function that gives Tina's
daily profit as a function of price. Then graph Tina's profit as a function of price.
revenues: p * (50 - p) = 50p - p 2 price (p)
costs: .3 * (50 - p) = 15 - .3p 1
2
profit (y): 50p - p - (15 - .3p) 2
y = -p2 + 50.3p -15 3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
profit (y)
34.3
81.6
126.9
170.2
211.5
250.8
288.1
323.4
356.7
388
417.3
444.6
469.9
493.2
514.5
533.8
551.1
566.4
579.7
591
600.3
607.6
612.9
616.2
617.5
616.8
614.1
609.4
602.7
594 profit (y)
583.3 700
570.6
555.9 600
539.2 500
520.5
400 profit (y)
499.8
477.1 300
452.4
200
425.7
397 100

0
0 10 20 30 40 50 60
 300

200

100
366.3 0
333.6 0 10 20 30 40 50 60
298.9
262.2
223.5
182.8
140.1
95.4
48.7
0
(1) Evaluate 16-1/4.
0.5

(2) Evaluate 93/2.

27

(3) Simplify (x3)2 * (x4).

x10

(4) Simplify (x3 * 23)/x2.

8x3/x2 = 8x

(5) Simplify x4 * (x3).

x7

(6) When a price of p dollars is charged, the demand for a product is 1000p^(-
1/4). If the price is $16, what will be the demand for the product?
500

(7) Suppose that the number of units produced of a product is given by

K1/3L2/3, where K = dollars spent on capital and L = hours of labor available. If
$27 is spent on capital and 64 hours of labor are used, how many units can be
produced?
48

(8) Suppose that production follows a Cobb-Douglas production function. If

the quantity of available capital and labor is doubled, what will happen to
total output?
It will double. K L a

When production follows a Cobb-Douglas function, Y = K^a*L^(1-a). If K and L

are doubled, the amount produced is (2K)^a * (2L)^(1-a) = 2^a*K^a*2^(1-
a)^L^(1-a)=2K^a*L^(1-a)=2Y. Thus, production doubles." 27 64 0.333333
54 128 0.333333
108 256 0.333333
216 512 0.333333
output

48
96
192
384
(1) 20 - 2 × 32
2

(2) (8 - 5) × (7 - 3)
12

(3) 10/(4 - 2) + 5
10

(4) 10/4 - 2 + 5
5.5
(1) Suppose that Tina's neighbor, Jessica Spears, is opening a lemonade stand. If Tina charges a price (in
dollars) of p1 and Jessica charges a price p2, then Tina will sell 100p1/(p1 + p2) glasses of lemonade. If
p1 is in cell A2 and p2 is in cell B2, write a formula that yields the number of glasses of lemonade Tina
will sell.
1.5
Solution: 100*A2/(A2+B2) =

(2) Use Excel to graph the function f(x) = -x 2 + 4x - 3.

-3 -1 1 3 5 7 9 11 13
-1

-3

-5

-7

-9

-11

-13

-15
 1.75
46.15384615

x y
-2 -15
-1 -8
0 -3
1 0
2 1
3 0
4 -3
5 -8
6 -15
(3) Suppose that the number of units produced follows a Cobb-Douglas production function with f(K,
L) = K^1/5L^4/5. If K is entered into cell B1 and L is entered into cell C1, write a formula that will yield
units produced. If K = 100 and L = 50, how many units will be produced? 100
Solution: B1^(1/5)*C1^(4/5) = 57.43492

(4) Suppose that the cost of producing x units is given by c(x) = 500 + 2x 3 - x2 + 2x. Graph the relation
between units produced and production cost. Assume that x can range between 0 and 100.
x
2500000 0
10
2000000 20
30
40
1500000 50
60
1000000 70
80
90
500000 100

0
0 20 40 60 80 100 120
 50

c(x)
500
2420
16140
53660
126980
248100
429020
681740
1018260
1450580
1990700
(1) Suppose that the demand curve for a product is q = 500 - 2p. Invert this
demand curve.
q = 500 - 2p
q - 500 = -2p
(q - 500)/-2 = p
=-q/2 +250 = p

(2) Suppose that the demand curve for a product is q = 200p -.25. Find the inverse
demand curve.
q = 200p-.25
qp.25 = 200
p.25 = 200/q
p = 1600000000/q4
(1) Michael Johnson has $100,000 to invest in stocks, bonds, and gold. He would like to allocate his
portfolio in the ratio 5:4:1. How much money should he invest in each asset class?
10x = 100000; x = 10000
stocks: $50,000; bonds: $40,000; gold: $10,000

(2) The ratio of wins to losses for Gregory's AAU basketball team was 11:9. They played 40 games.
What was their win-loss record?
22 wins, 18 losses

(3) During 2011, Smalltown Bagels earned $2 million in revenues. Its profit margin is 30% of revenue.
Revenues are estimated to increase by 10% per year. Estimate STB's revenues and profits for the years
2012 through 2014.

2011
2012
2013
2014

(4) The Smalltown Inn is Smalltown's best hotel. The base price for a room is $100 per day. The inn
marks up the base rate by 20% on Friday and by an additional 25% (over Friday's rate) on Saturday.
What will the room rates be on Friday and Saturday? If the inn wants to return to the base rate on
Sunday, by what percentage will it have to reduce Saturday's rate?

To return to the base rate of $100 on Sunday, the inn will have to reduce Saturday's $150 rate
by 1/3 or 33.33%.

(5) Gregory's AAU basketball team has a 12-8 record. They will play a total of 80 games, of which they
need to win 70% to qualify for the AAU National Tournament. What percentage of their remaining
games do they need to win?
73.30%
revenue profit
$ 2,000,000 $ 600,000
$ 2,200,000 $ 660,000
$ 2,420,000 $ 726,000
$ 2,662,000 $ 798,600

base $ 100.00
Friday $ 120.00
Saturday $ 150.00
(1) Again suppose that the demand for lasagna is q = 100 - 10p, where p = price in
dollars. Show that demand is inelastic when the price is $3.
p q
3 70

(2) Again suppose that the demand for lasagna is q = 100 - 10p, where p = price in
dollars. Show that demand is elastic when the price is $9.
p q
9 10

(3) Suppose that the daily demand for mocha coffees at Fourbucks is governed by the
demand function q = 1000p-3. What is the demand elasticity for mocha coffees? Is the
demand elastic or inelastic? Verify your answer from the definition of elasticity when
p = 3 and p = 6.
Elasticity is -3 and calculations to right come close. p q
3 37.03704
6 4.62963
p up 1% new q elasticity
3.03 69.7 -0.42857 E > -1: inelastic

p up 1% new q elasticity
9.09 9.1 -9.00000 E < -1: elastic

p up 1% new q elasticity
3.03 35.94778 -2.94099 E < -1: elastic
6.06 4.493473 -2.94099 E < -1: elastic
(1) Find Log10 10000.
4

(2) Find Ln e6.

6

(3) Solve for b if Logb 81 = 4.

3

(4) Suppose that the daily demand q (in hundreds of cups) for mocha coffees at Fourbucks
follows the equation q = 1000p -.5, where p = price in dollars. If we graphed Ln p on the x axis
and Ln q on the y axis, what type of graph would we obtain? Hint: Take logarithms of both
sides of the demand curve.
p
7
1
6.9 1.25
6.8 1.5
6.7 1.75
6.6 2
6.5 2.25
ln q

6.4 Ln q 2.5
6.3 2.75
6.2 3
6.1 3.25
6 Then we take logs of both sides
0 0.2 0.4 0.6 0.8 1 1.2 1.4
ln p

(5) Suppose that the Happy Tails veterinary clinic earns $200,000 in profits this year. If its
profits grow at 25% per year, how many years will pass before its annual profit is $1 million?
The profit in year n is 200,000*(1.25)^n=1000000. n = ln(5)/ln(1.25) = 7.212."
 q Ln p Ln q
1000 0 6.907755279
894.4272 0.223144 6.7961835033
816.4966 0.405465 6.7050227249
755.9289 0.559616 6.627947385
707.1068 0.693147 6.5611816887
666.6667 0.81093 6.5022901709
632.4555 0.916291 6.449609913
603.0227 1.011601 6.4019548231
577.3503 1.098612 6.3584491346
554.7002 1.178655 6.3184277808
Then we take logs of both sides and the power curve becomes a straight line
(1) For the years 2000 through 2008, compute the CPI
index relative to a base year of 2005.
base year = 1982 base year = 2005
2008 211.08 110.69
2007 202.42 106.14
2006 198.30 103.99
2005 190.70 100.00
2004 185.20 97.12
2003 181.70 95.28
2002 177.10 92.87
2001 175.10 91.82
2000 168.80 88.52