MTH_112| Midterm Revision Sheet

Part (A): Identify which of the following is “True” and which is “False”. If it is false
correct it by rewriting the exact statement.
1. If the profit function of a company which sells x units of a certain product is given by
the relation: P  15x  2400 , where P is in dollars, then we can say that “ 160 units
have to be sold to break even ”
True
2. If the quantity demanded of a certain product is given by the following function:
xd  30 p  300 where xd is the quantity demanded in units and p is the selling
price in dollars, then we can say that “For every increase in the selling price by
1$,“the quantity demanded increases by 30$”.
False decreases by 30 units
3. If the total Revenue resulting from selling a certain product is given by the relation:
R  40 p 2  4000 p then we can say that "a maximum Revenue of 50$ could be
realized".
False 100,000$
4. If the profit function of a company which sells x units of a certain product is given by
the relation: P  15x  2000 , where P is in dollars, then we can say that “when no
units are sold, the company will breakeven ”
False Loose 2000 $
5. If the supply function of a certain product is given by the relation qs  20 p  1200 ,
then we can say that “the supplier is willing to supply 60 units for free”.
False 1200units
6. If the total Profit of producing and selling x units of a certain product is given by the
relation: P  25x  1000x  1000 then we can say that "a maximum profit of
2

1000$ could be realized".

False 9000$

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7. If the quantity demanded of a certain product is calculated by the following relation:
xd  30 p  300 where xd is the quantity demanded in units and p is the selling
price in dollars, then we can say that” No one will be willing to buy the product if it is
sold at a price of 30$”.
False 10$
8. The slope of the price-demand function is either positive or negative.
False, the slope of the price-demand function is negative.
9. The graph of the relation y = 12x – 36 cuts the x-axis at 24.
False, the graph of the relation y = 12x – 36 cuts the x-axis at 3.
10.The graph of the relation y = 7x + 14 cuts the y-axis at 14.
True
11. Breakeven occurs when the revenue is less than the cost.
False, breakeven occurs when the revenue is equal to the cost.
Or
False, Loss/Deficit occurs when the revenue is less than the cost.
12.Market equilibrium occurs when the quantity supplied is less than the quantity
demanded.
False, Market equilibrium occurs when the quantity supplied equal to the quantity
demanded.
Or
False, Shortage occurs when the quantity supplied is less than the quantity
demanded.
13.An equation of a straight line y = 3 passes through (4,3) and is vertical.
False, An equation of a straight line y = 3 passes through (4,3) and is horizontal.
Or
False, An equation of a straight line x = 4 passes through (4,3) and is vertical.
14.The lines x+4y+2=0 and 8x-2y-2=0 are perpendicular.
True
15.The lines y=5x+2 and 10x-2y=3 are perpendicular.
False, The lines y=5x+2 and 10x-2y=3 are parallel.
16.The function cuts the y-axis at 1.
True

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17.The function cuts the x-axis at 2.
False, the function cuts the x-axis at 2.
18.The function has a minimum point.
False, has a maximum point.
19.The function is concave up.
True
Part (B): Linear Applications

1. MSA purchased a new water pump in 2010 for $16,900 and estimated that it will have
a scrap value of $650 after 13 years. If its value is depreciated linearly, Find a linear
depreciation equation of the form that relates the value of the pump (V) in dollars to
time (t) in years since 2010. Interpret the meaning of the slope of the depreciation line.
What is the depreciated value of the pump in 2015? In what year will the value of the
pump fall below $4,400?
Givens: (t1,V1) = (0, 16900) & (t2, V2) = (13, 650) Depreciation function:
Solution 𝑉 𝑓(𝑡)
 𝑉 𝑚𝑡 𝑏
16900  650
m  1250 Keep in mind that the slope
0  13 of the depreciation function
must be negative.
(Substitute by (0,16900)
( )

Thus, the depreciation function:

 Slope = 1250 $/year
Every year, the value of the pump decreases (depreciates) by 1250$.
OR
The value of the pump decreases with a rate of 1250$/year
 V  1250(5)  16900  10,650$

4400  1250t  16900
t  10 years
Intheyear
Thus, 2020of the pump will fall below $4,400 in 2020.
the value

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2. Aya purchased an apartment in New Cairo in 2010. The resale value (the market
value) of the apartment (in dollars) was found to be $120,000 in 2014 and $128,000 in
2018. The relation between the market value of the apartment V (in dollars) as a
function of time t in years since 2014 is found to be linear. Find this linear model.
What was the value of the apartment when Aya first purchased it in 2010? What is the
value of the apartment in the year 2022?

Givens: (t1,V1) = (0, 120000) & (t2, V2) = (4, 128000) Appreciation function:
𝑉 𝑓(𝑡)
Solution 𝑉 𝑚𝑡 𝑏

128000 120000 Keep in mind that the
m  2000 slope of the appreciation
40
function must be positive.
(Substitute by (0,120000)
( )

Thus, the appreciation function:

 In 2010, t = -4, then ( )
 In the year 2022, t = 8, then ( )

3. A cereal company finds that the daily cost of producing 500 boxes of a certain brand
is $6000. If the production level is increased to 950 boxes per day, the daily cost
jumps to $10500. Find a linear cost function. Estimate the cost needed to produce
1250 boxes. What is the daily fixed cost? Determine the marginal cost and interpret
its meaning?

Givens: (q1, C1) = (500, 6000) & (q2, C2) = (950, 10500) Cost function:
𝐶 𝑓(𝑞)
Solution
𝐶 𝑚𝑞 𝑏

10500 6000
m  10
950  500

(Substitute by (500,6000)
( )

Thus, the cost function:

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  C  10(1250)  1000  13500$
 Daily fixed cost = 1000$
 Marginal cost = 10$/box
“Every increase in the production by 1 box, daily costs increase by 10$”
Or
“The daily costs increase at a rate of 10 $/box”

4. A company plans to market a new product. Based on its market studies, the company
estimates that it can sell the new product for $18 per unit. Fixed costs are estimated to
be $8100 to run the company while variable costs are estimated to be $12 for each unit
produced. Find the profit function. What is the profit/loss if the company produces
and sells 900 units? How many units should the company sell to break even?
Estimate the breakeven point.

Solution
Profit function:
 𝑃 𝑅 𝐶

Thus, the profit function:

( )

 ( ) ( )
 Breakeven occurs when P=0

 Estimating the breakeven point (q, R) or (q, C):

Breakeven occurs when P=0

units
Then, substituting q either in the revenue function or the cost function:
( ) $
Thus, the breakeven point is (1350, 24300).

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5. The demand for your college newspaper is 2000 copies each week if the paper is
given away for free, and drops to 1000 copies each week if it is sold at a price of
$2/copy. Find a price-demand equation assuming it is linear, where p is the selling
price per copy in dollars and q is the corresponding quantity of copies sold per week.
From the demand equation, determine the rate of change and interpret its meaning. If
your college charges $2.5 per copy, how many copies will be sold at that price?
At what price will no one buy the newspaper?

Givens: (q1,p1) = (2000,0) & (q2,p2) = (1000,2)

Demand function:
Solution 𝑝 𝑓(𝑞)
 𝑝 𝑚𝑞 𝑏

Keep in mind that the slope of the

price-demand function must be
(Substitute by (2000,0)) negative, as it is known that there
( ) is a negative relation between the
b=4 price and quantity demanded.
Thus, the demand function is
 Rate of change = -0.002 $/copy
Interpretation: Every increase in the quantity demanded of the weekly newspaper
by 1 copy, the price decreases by 0.002$.
Or
The price of the weekly newspaper decreases at a rate of 0.002 $/copy.
 At p=2.5$, then
 At q=0, then ( )

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6. It has been determined that at a price of $4 a store can supply 2000 and demand 2400
of a particular type of toy dolls, and for a price of $8 the store can supply 3600 and
demand 600 such dolls. Assuming a linear relation, find the demand-price and supply-
price equations, where p is the price per doll in $, and x is the number of dolls per
week. Determine the market equilibrium price and quantity. If the store decided to sell
each pair for $7, will we have a shortage or a surplus situation? Determine the number
of dolls (shortage or surplus) in this case.
Givens: Demand function:
Demand: (x1,p1) = (2400,4) & (x2,p2) = (600,8) 𝑝 𝑓(𝑥)
𝑝 𝑚𝑥 𝑏, where 𝑥 is the
Supply: (x1,p1) = (2000,4) & (x2,p2) = (3600,8) corresponding demand of
Solution dolls.
 Demand function:
Keep in mind that the slope of
the price-demand function
must be negative, as it is
known that there is a negative
(Substitute by (2400,4)) (inverse) relation between the
( ) price and quantity demanded.
b = 8.8 However,
Thus, the demand function is Supply function:
Supply function: 𝑝 𝑓(𝑥)
𝑝 𝑚𝑥 𝑏, where 𝑥 is the
corresponding supply of dolls.

Keep in mind that the slope of

(Substitute by (2000,4)) the price-supply function must
( ) be positive, as it is known that
b= there is a positive (direct)
Thus, the supply function is relation between the price and
quantity supplied.
 Market equilibrium occurs when the quantity
demanded equal to the quantity supplied at the
same given price.
Demand function = Supply function

(divide by - 0.0045)

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 Then, substitute in either the demand or the supply functions:
( )
Thus, the market equilibrium point is (2178,4.4)
 At p=7
Demand function:
Supply function:
Since the quantity supplied is greater than the quantity demanded, therefore there is
a surplus of 2300 units. (3200 – 900 = 2300)
Part (C): Quadratic Applications

1. A company started to produce a new brand of perfume. The market research

department predicts that the price-demand function for its new perfume next month is
controlled by the following function: ,where p is the price of a
single bottle (in dollars) and x is the number of bottles it can sell in one month. Find
the level of production that will maximize the total revenue, and determine the
revenue. How much should the company charge for each bottle in order to achieve
the above maximum revenue?
Solution
Revenue function:
R  px  (50 x  1500) x
R  50 x 2  1500x
 The level of production that will maximize the total revenue:
 b  1500
xv    15bottles
2a  100
 The maximum revenue:
Rv  Rmax  50(15)2  1500(15)  11250$
 p  50(15)  1500  750$
Thus, the company charges 750$ for each bottle in order to achieve the above
maximum revenue.

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2. The demand for a new brand of shampoo, was found to behave according to the
following function: q  f ( p )  5 p  2800 where q is the number of shampoo
bottles sold in a month as a function of the price per bottle p in dollars.
a) Sketch the revenue function.
b) From the sketch determine the restricted domain and the restricted range of the
function?
c) At what price will total revenue be maximized?
d) How many units will be demanded at this price?
e) What is the value of the maximum total revenue?
Solution
Revenue function:
R  pq
R  5 p 2  2800 p
a) Concavity: Since “a” is -, curve is concave down (has a maximum).
R-intercept: (0, c) = (0, 0)
p-intercept (s):  5 p  2800 p  0
2

Solving for p by formula (or by factoring)

p1  0 , p2  560
Thus, p-intercepts are: (0, 0) & (560, 0).
Vertex: ( )
 b  2800
pv    280
2a  10
Rv  5(280)2  2800(280)  392,000
Thus the vertex is: (30, 2700)
b) Domain:
Range:
p  280$
c) v
d) ( )
Rv  392,000$
e)

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3. A multimedia company anticipates that the price-demand relation for one of its new
DVDs is given by the following equation: x  500 p  3000 where p is the selling
price per DVD (in dollars) and x is the number of DVDs sold in a day.
a) Write an equation for the daily revenue as a function of selling price.
b) At what price should the company sell each DVD to obtain maximum revenue?
What is the maximum total revenue possible?
c) If each DVD produced costs the company $2 with fixed costs of $1500 per day for
advertising, write an equation for the total daily cost as a function of selling price
C  f ( p)
d) Write an equation for the daily profit as a function of selling price.
e) At what price(s) will the company breakeven.
f) If the company is considering selling each DVD for $5.5, would you recommend
the company to do so? Give you reasons.
Solution

a) R  px  500 p  3000p
2

b) Maximum revenue occurs at the vertex

 b  3000
pv    3$
2a  1000
Rmax  500(3)2  3000(3)  4500$
c)
C  2 x  1500  2(500 p  3000)  1500
C  1000 p  7500
d)
P  R  C  500 p 2  3000p  (1000p  7500)
P  500 p 2  3000p  1000p  7500
P  500 p 2  4000p  7500
e) Break even occurs when P = 0;
 500 p 2  4000 p  7500  0
Solving for p we get: p1 =3$ and p2 =5$
f) ( ) ( )
No the company should not do so because it will suffer a loss of 625$.

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4. A company started to produce a new brand of perfume. The market research
department predicts that the price-demand function for its new perfume next month is
controlled by the following function: p  50x  1500 where p is the price of a single
bottle (in dollars) and x is the number of bottles it can sell in one month. Meanwhile,
the monthly cost (in dollars) for the above perfume was found to behave according to
the following relation: C  100x  8000
a) Write an equation for the Revenue function.
b) How many bottles should the company produce and sell to break even?
c) If the company is considering producing and selling 12 bottles next month, would
you recommend the company to do so? Why? Justify your answer by calculating
the net gain/loss at the suggested production level.
Solution

a) R  px  50x  1500x
2

b) To break even
RC
 50x 2  1500x  100x  8000
 50x 2  1400x  8000  0
Solving we get:

x1  8bottles ; x2  20bottles
c) ( )
( ) ( ) ( ( ) )
d) Yes, I recommend the company to produce 12 bottles next month because they will
make a net gain (profit) of 1600$.

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Part (D): Exponential and Logarithmic Applications

1. Bacteria are growing in a culture, and their number is increasing at the rate of 5% an
hour. Initially, 400 bacteria are present. (a) Determine an exponential equation that
gives the number, N, of bacteria present after t hours. (b) How many bacteria are
present after one hour? (c) After four hours? Give your answers to (b) and (c) to the
nearest integer.
Givens: Rate of change = 5% (Growth), A = 400 bacteria Exponential form:
𝑦 𝐴(𝑏)𝑥
Solution
a) ( )

Thus, the exponential function is ( )

b) ( )( )

c) ( )( )

2. A certain medicine reduces the bacteria present in a person by 10% each hour.
Currently, 100,000 bacteria are present. (a) Write an exponential function N for the
number of bacteria after t hours. (b) How many bacteria are present after 5 hours?
(c) After how many hours the number of bacteria will reach 90000 bacteria.
Givens: Rate of change = 10% (Decay), A = 100000 bacteria
Solution
a) ( )

Thus, the exponential function is ( )

b) ( )( )
c) ( )

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3. A piece of land was purchased in 2012 for $200,000. In the year 2016, the value of the
land was estimated to be $350,000. If the relation between the value of the land V (in
dollars) and the time t (in years since 2012) is exponential of the form. (a) Write down
the exponential equation. (b) Use the equation to predict the value of the land in the
year 2021. (c) Calculate the rate of change (growth or decay?) (d) In what year will
the value of the land reach $1,080,000$?
Givens: A = 200000$ & (t, V) = (4, 350000)
Solution
a) ( )

( ) (Substitute by (4, 350000))

350000  200000(b) 4  1.75  b 4  b  1.15016  1.15
Thus, the exponential function is ( )
b)
V  200000(1.15)t
V  200000(1.15)9  703,575.258  703,575$
c) Rate of change = 1.15  1  0.15  15% / year (Growth)
d) ( )

In the year 2024.

4. The population of tigers in Siberia has been decreasing over time since the year 2005.
Specifically, studies showed that in 2009 the population was 4536 tigers and in 2015 it
reached 429 tigers. If the relation between the population of tigers P and the time t in
years since 2005 is believed to be an exponential function. (a) Write the exponential
equation. (b) Estimate the population in 2018. (c) In what year will the tiger
population reaches about 40 tigers? Give your answers to (b) and (c) to the nearest
unit.
Givens: (t1, P1) = (4, 4536) & (t2, P2) = (10, 429)
Solution
a) ( )
429  A(b)10
4536  A(b) 4
Dividing
143
 b6
1512
b  0.67499  0.675
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 Substituting in any equation we get:
A  21848 or A  21850
Thus, P  21850(0.675) or P  21848(0.675)
t t

b)
P  21850(0.675)13  131.947  132tigers
c)
40  21850(0.675) t
t  16.036  16 years
The year is 2021

5. The population of a certain rare type of fish is found to behave exponentially

according to the following equation: P  P0 e where P is the population in
rt

thousands, P0 is the initial population in thousands, r is the relative rate of change, and
t is the time in years since 2010. The population was found to be about 500 thousand
in 2010, and reached about 375 thousand in the year 2015.
a) Find the values of P0 and r (accurate to 4 decimal places) and write the
exponential equation.
b) Express r in %.
c) In what year will the population reach 251 thousand fish?
Givens: A = 500 thousand fish & (t, P) = (5, 375)
Solution
a)

375  500e r ( 5)
0.75  e r (5)
r  0.0575
Thus, the exponential function is
b) r  5.75% / year
c)
251  500e 0, 0575t
t  11.98  12 years
In the year 2022

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