QNO 1:

Solution:
Purchase cost = 80,000

Useful life = 6 years

Depreciation = purchase Value/useful life

=80,000/6

=13,333.3333

Now V = f (t)

V = purchase Cost-Depreciation

V = 80,000-13,333.3333 (t)

Where (0 <t <6) Answer

Q No.2

Solution:
V = 20000-3500(t)

V = f(t)

V = Purchase Cost – Depreciation

Depreciation = purchase cost – Salvage cost / Useful life

=20,000-7,500/6

=12,500/6

=2,083.333

Putting values in function

V = 20,000- 2,083.3333(t)

V = 17,916.67(t) Answer

Q No. 03

Solution:
Purchase value = 300,000

Useful life = 8 years

Depreciation = purchase value/useful life

=300,000/8

=37,500

V = f(t)

V = Purchase Value –Depreciation

V = 300,000-37,500(t)

Where,

(0 <t <8) Answer

Q No. 04

Solution:
Resale Value = 28,000

Depreciation = Purchase cost – Resale cost / Useful life

=300,000-28,000 /8

=34,000

V = f(t)

V = Purchase cost – Depreciation

V = 3,00,000- 34,000 (t) Answer

Q No. 05

Solution:
Purchase Value = 25,000

Resale or Salvage Value = 5,600

Depreciation = Purchase Value-Resale or Salvage Value / Useful life

=25,000-5,600/3

=6,466.67
V = f(t)

V = Purchase Cost –Depreciation

V = 25,000-6,466.67(t)

Where (0<t<3) Answer

Q No.06

Solution:
(a) R = f(n )= 36 when n=16 and

R = f(n) = 36+1.20(n-16) when n>16

(b) R intercept shows that when no. of officers is 16, then arrest rate is 36 %

(c) Here slope = m = 1.20, which shows that with increase of every one officer in force will
increase 1.20% arrest rate.

(d) when n = 16 (minimum) then

R = 36

When R = 100 (max) then

100 = 36+1.20(n-16)

n = (100-36) /1.20)-16

n = 37.33

Hence, Restricted domain {16 <= n <= 37.33}

Restricted range {36 <= R <= 100s }

Q No. 07

Solution:
(a) q = f(p)

Here q = mp + k

m = y2-y1/x2-x1

= q2-q 1/p2-p1
= 65,000-80,000/30-20

= -17,500/1

= -1750

Q= mp+k

Q= -1750p+k

As q = 80,000 p = 20 so k will be

80,000 = -1750(20)+k

80,000 = -35,000+k

K = 1,15,000

Putting values

Q = -1750p+115000

(b)

If q = 50,000 then price

50,000 = -1750+115000

-65,000 = -1750p

P = 37.14

(b)Interpret the Slope:

The quantity demand decreases 1750 units for each $1 increase in price.

As slope is change in quantity demand for every 1 unit change or increase in price.

(d)To measure maximum q will be

Q = -1750p+1,15,000

When p = 0 then q

Q = 1,15,000

To measure maximum p

When q = 0 then p will be

0 = -1750p+1,15,000

=1,15,000
P = 65.71

Domain {0<p<65.71}

Range {0<q<1,15,000}Answer

(e) Q

120

(000)100
(20,80,000)

(30,62500)

0 10 20 30 40 50 60 70

Q No. 08

Solution:
(a) Q = f(p)

Q = mp+k

M =q2-q1/p2-p1

= 44,400-60,000/32-24

= -15,600/8

= - 1950

As q = 60000 p = 24, m = -1950 then k will be

60,000 = -1950(24)+k

60,000 = - 46,800+k

K = 1,06,800
So q = mp+k

Q = -1950p+106800

(b) If q = 80,000 then p=?

Q = -1950p+106800

80,000 = -1950p+106800

-26,800 = -1950p

P = $13.74

(c) The quantity demand decreases 1950 units for each $1 increase in price.

As slope is change in quantity demand for every 1 unit change or increase in price.

(d) To measure maximum q will be

Q = -1950p+106800

When p = 0 then q

Q = 1,06,800

To measure maximum p

When q = 0 then p will be

0 = -1950p + 1,06,800

1950p = 1,06,800

P = 54.76

Domain {0<p<54.76}

Range {0<q<1,06,800} Answer

Q No. 09.

Solution:
(a) Q = f(p)

Q = mp+k

M = q2-q1 /p2-p1

= 55,000-28,000/6.50-4
= 27,000/2.5

= 10,800

As q = 28,000 p = 4, m = 10,800 then k will be

28,000 = 10,800(4)+k

28,000 = 43,200+k

K = -15,200

So q = mp+k

Q = 10800p-15,200

(b) If q = 45,000 then p=?

Q = 10,800p-15,200

45,000 = 10,800p-15,200

60,200 = 10,800p

P = $5.57

(c) P intercept when q = 0

0 =10,800p-15,200

10,800p = 15,200

P = 1.407

So P intercept (1.41,0)

Suppliers are willing to provide this good when market price exceeds 1.41.(no supply when
MP=1.41 per unit)

Q No. 10

Solution:
(a) Q = f(p)

Q = mp+k

Here m q2-q1/p2-p1

= 1,80,000 - 1,16,000 / 5 - 3.50

= 64,000 / 1.5
= 42,666.67

So p = 3.50,q = 1,16,000 and m = 42,666.67

1,16,000 = 42,666.67(3.50)+k

1,16,000 = 1,49,333.35+k

K = -33,333.35

So q = 42,666.67p -33,333.35

(b)Here q1 = 1,35,000

135,000 = 42,666.67p – 33,333.35

168,333.35 = 42,666.67 p

P = 3.945

(c) Slope indicates that with an increase of $1 in price the quantity q will be increased upto
42,666.67

(d) P intercept when q=0

Q = 42,666.67p – 33,333.35

0 = 42,666.67p – 33,333.35

33,333.35 = 42,666.67 p

P = 0.78125

P intercept means at $.078125 the quantity q will be zero.

(e)

Q (33.33,0)

30

(Thousands)10 (0,0.78125)

0 0.25 0.50 0.75 1

Q No 11

Solution:
 (a) p intercept indicates that when t = 0 in the year decree is issued),payment made is
90% of the case.
(b) Slope means each additional year after the decree issued the percentage of case in
which payments are made decreases or declined by 12.5 .
(c) When t = 5

P = 90-12.5(5)

P = 27.5%

(d)

90 ( 90,0)

30 (27.5,5)

0 1 2 3 4 5 6 7

Q No. 12

Solution:
(a) As base year is 1980 so in 1980 t = o and in 1988 t = 8

N = f(t)

Here n = mt+k

M = n2-n1 / t2 –t1

= 1235-925 / 8- 0

= 310 / 8

= 38.75

As t = 0,n = 925,and m = 38.75 then k will be

N = mt+k

925 = 38.75(0)+k

K = 925

So
N = 38.75 t +925

(b) Slope indicates that with each year increase or change the estimated number of injuries
per year will increase by 38.75

(c)Here n = 1,500

N = 38.75 t +925

1500-925 = 38.75 t

575 = 38.75 t

T = 14.37

After approximately 15 years( in 1995).Answer

Q No.13

Solution:
(a) P = f(a)

P = ma+k

Here m = p2-p1 /a2-a1

M = 78-18/24-45

M = 60/-20

M = -3

Here p1 = 18, m = -3 a1 = 45 so k will be

18 = -3(45)+k

18 = -135+k

K = 153

So p = f(a)

P = -3a + 153

(b) The slope indicates that for each additional year a never married woman ages, the
probability of marriage decreases by 3%.The P intercept indicates that a new-born woman
has 153%probability for marriage.
(c) The slope is reasonable, but the P-intercept is not meaning full.

(d) F (20) = -3a+153=-3(20) +153 = 93%

F (30) = -3a+153=-3(30) +153 = 63%

F (40) = -3a+153=-3(40) +153 = 33%

F (50) = -3a+153=-3(50) +153 = 3% Answer

Q No. 14

Solution:
(a) As base year is 1950,in 1960 t = 10, and in 1988 t = 38

P = f(t)

P = m(t)+k

Here m = p2-p1/ t2 –t1

= 60 - 30/ 38 -10

= 30 / 18

= 1.071

As p = 30, t = 10,m = 1.071 so k will be

30 = 1.071(10) + k

30-10.71 = k

K = 19.285

Putting values

P = mt +k

So P = 1.071 t + 19.285

(b) Slope indicates that with each year increase their will1.071 % increase in percentage
of married couple with wives who works.

p-intercept means in 1950 when t = 0 their was 19.285 % of married couples with wives who
work.

(c) Here p = 75%

75 = 1.071 t +19.285
75-19.285 = 1.071 t

T = 52.02 After 52.02 years from base.(in 2002) percentage will get 75%.Answer

Q No.15

Solution:
(a) As base year is 1995 so 1958-1955 = 3 years and 1984-1955 = 29 years

So E = f(t)

E = mt+k

M = e2-e1/t2-t1

M = 3812.50-1750/29-3

= 2062.5/26 =79.33%

As t= 3, E= 1750, M =79.33 so K=?

1750 = 79.33(3) + k

1512.01 = k

So E = mt + k

E = 79.33(t) + 1512.01

(b) The slpoe indicates that each year the per student expenditure in US schools will be
incrased by $79.33

The E-intercept means that in 1955 when t = 0 the per student expenditure was $1,512.01

(c) here t = 45

E = 79.33 t+ 1,512.01

= 79.33(45 )+ 1,512.01

= 3,569.85+1,512.01

= 5,081.86 Answer

Q No.16

solution:
(a)As base year is 1986,in 1987 t = 1, and in 1989 t = 3
P = f(t)

P = m(t) + k

Here m = p2-p1 / t2 –t1

= 1.220 - .762/ 3 -1

= .458 / 2

= .229

As p =.762, t = 1,m =.229 so k will be

.762 =.229(1) + k

.762 - .229 = k

K =.533

Putting values

P = mt +k

So,

P = .229 t +.533

(b) Slope indicates that with each year increase the estimated annual profit will increase
by $.229 billion.

p-intercept means that in 1986 when t = 0 the annual profit was $.533 billion.

(c)Here in 2000 t = 14

P =.229 t +.533

=.229 (14)+0.533

= 3.739 Answer