Mathematics in

Management science
 CHAPTER 1
1.1.
Graphs of linear equations
pointson graph paper given
-Plot theircoordinates
Add subtract, divide
mutiply, negative numbers
-

theline
sketch
by yendingthe coordinates of points
aline on
-

Solve stimutaneous near equation graphically

sketch fine
by usingslope intercept
- to
a

- -

0
" I

origin a..........
Example:Plotthe points:ACC;3) BC-1,4) C2-3, -1), DC3, -2), E25,0
the
A:S units positivedirection
to
(up
to the
Lunits (xaxis) right

Example:(add Isubtract) multiply) divide

Rules
of sign
without
Evaluate a calendar
972) (
x
-

x) x( -

1) 2 ( 1) x2 3
x x
-
-
-
=
48
( 2 3) ( 6-8) -14
4 x
-

+
-
=

45x( 4) 2
x -

1) x 2 -3):( 6) -
-

2 8 =

Example:Decide which the following pointslieon the line

of in-cy= 0

A(0; -3)
BC2:2)
22-10. -28
Example:Use the slope interceptapproach -

line
to sketch the
[n+by:12
=)
2a y
-
4
=

slope. 5:

Interceptty..................
-

!
slopese -

rise: + 4

Slope=
yy7= e A

7
⑧ 6 e

1.2.
of simultaneous linear equation unknown
Algebraic solution
2 simultaneous unior equation in 2
solve when
asystem
-

of
as

does not have solution

-
Detect a
system of equations a

solution's
I Il "has
infinitely many
-

-
solve a
system of 3 simultaneous linear
equations in 3 unknowns
elimination
-

wing

ExamplesbyFSy
11 (eliminalin
2x
y
+
5
= *9 4x
4uxsy=
2y
+
10
=
y=
1

method)

952y=
2x -
1(1)
2(2) y
+
=
-

Since 4 SE I
binar
graphs
Sol:
SCn-by
1
=

same
-

1. No solution, inconsistent
50
-16y=5 at least 1 solution + consistent
c
1.3.
Supply and demand analysis
Usethe ca
functionnotation genome
-

vanables inan mode

economic in
-

Identify a sketch a linear demand junction

11
supply
-

C
11 Il
the
Determine price quantify
you single market
commodity
-

a a -

both
graphically and
algebraically
price,aquantitatior multi-commoditymarketat
Determinethe on
-

A
↓

function:y (n+3ory() 20 3
=
=
+

Eg:(jj(x) 2a 4n 1 +
-
+
=

2.54
Find the value
o y(s):g() =
-
+ 4.5 1 71
+
=

Demand junction
The demanded: the market
quantity ad, of good depends price
-

a on
-> pdemand
junction
y(P)
a =
+ P
g(Q)
=
inverse
+

·Hypothesis: P
a.Qp
= b
+

py GpN
->

Pr Qpt
+

Eg:sketch a
graph of demand junction : P = -20 + 50

the value
Hence, otherwise, determine of:
(a):Pwhen G 9 - =

(b):G when P 18 so =

a g P 32
=
+
=

P 10=
0 20 +
=

>
28
 Good's price
-

Income -

substitute goods -

PS
t Q
>
quantity
Complementary
-

Pc

Ads. expenditure A
-

Taste -

Supply junction
↓

Quantity (a) produces plan to bringtothe

that market, the price
of
a
good
(P) of the good +
increasingjunction
-P
P a.a b
=
+
P a.k b
=
+

aDO,b>O

⑦
7
8

-
Equilibrium point e supply ove

........ demand curve

>

Eg:The demand a
supply functions
of a
good are
by
given
 ~P
P -
=

2Qp 88
+

Hat es
e)
+

25
P
Gg se
+

(9)=
=

WhereP, Qp, Qs
t
(a) PF S0, QE 10
so
=
=

ii
Ib government imposes afixed
of $5 each
tax
good
on

PS =

=
GS +
25+5 ⑯ G
3
⑧ 8 10

P'
*
=
Gs + 30 +PF (tax:34;GICtax) 8
= =

Example:sketch the
line: 4+sy=11/A(2:1)
ax+
by = c
-
BC-1,5
- y

:
-li
*(,D
............, 7
O
n

-y
Sketch the
pAs
lie Cnty 5 #y=T-2mT Blo;)
=

Slope: -2
Example:Findthe
pointof intersection
of the Clines: A 27;
9
xx
3g 11
GR
[
-I
=
+ =

-
22 5 1 ⑧
y
=

y
+ =

>
->
point of intersectionthe
mc2.D isthe clins a
of
the
(2i)is the
solution
of equations
&

of system

> Simultaneous linear equations

 in positiveslope
special form
a line
of
↓ ↓

slope intercept were slope

negativeslope
1. 4.
Algebra
the
Recognize symbols (, ); I and
-

inequalities
Manipulate
-

-multiply outbrackets
-

Add, subtract, multiply and divide numerical practions

-

algebraic practions
Add, subtract, multiply and divide

Inequalities
-

Example:Startingwith the true statement123

decide which the followingarevalid operations when performed on both
of
sides:
(a)
add 4
↳I add 5 -

2 mutiply 2
Cell divide
by -3
Example: simplify inequality:
the
2x 37412+7E)
+
-

2m-420 in i
Brackets: Evaluate
Example:
+
, 1 375-

(a) (12 -8) (6-5)

-

(1 3 5
(b 12 -(8-6) 5
+ -

+)
-

1-2375
Y (c) 12-8-6-5
Exampleout2 distributive
the bracketsin:
law)
Multiply
a,a(a-c)
& ((a+y 2
-
3(t
+

ig)
ya: (3y -(2y x) +

Example:Difference of squares:
Fractorize the following
expressions:
a,12-16 - (a+
(af
Fractions:a t numerator
If denominator non zero

Eg:Calculate:
a -E I =
(e)
= 7

orthee
I 5 Ez
↓
+ =

I 5 it
4
=
-

Transpositants ofjet re
me

a
-Draw aglow representatingaformula
chart
Use areverse you short to
-

transpose formula a

Change the subjectof formula involving

several letters
y j(x)
=

= 2x+3
the formula:In 2
Eg:Make the subject of
-

y
=

Eg:Transpose the
following to
equations express; in terms ofy:
as
as:bxtcyd f I y u
=

Carb)a ey =

d fx
+
d
=

a
-
b
by y
t
=
1.6. National income determination
-
Identify and sketch linear consumption junctions
and sketch linear
↑

Identify
-

junctions
savings
Set macro models
up simple
+

+
Calculate equilibrin national income
Im schedules
+
AnalysisIs and
Y:national income
households
+

>:g(y):Savings
2 T(Y) "consumption
=

ay b
consumption (b))0
= +

~Autonomous

Marginal propensity
to consume

Income Consumption
= +
Savings
y 2S = +

S y C y
= -
=

-(ay+) = (1 -
a)y- b, Marginal propensity to save

-> derivative:(S y -2 y -(ay b) (1 a)1 =

8
=

b
+ = -

Db
=
=
1a
y0 = -
=

Example:
I sketch a
graph of
the consumptionjunction
c0
by 20
+
=

Determine
the
correspondingsavingsyunetors and sketch its graph
e

4
-

z
~ (40i 10 en

-18
8 =0b
10 C.0,by 6,4
by
10 18 =

>
y
S
7 25
-
10
National
economy:
Households:y CtS =

Firms:y:CI
level
Example:Equilibrium of income
of the
and consumption consumption
junctionis C=
0, by 10 and planned investment1:12

10 (
Solution:
+ 10 2 55;-4
=
=

y 21 6 +
expenditure
=

gar
+ +

↓
investment

playter gas:
Disposableincome
Yd=y-fc ay et =

I35 =

C 0,9Yd
=
E0
+
2 b t
=ay
+ -

x 0.24
=
+25
the
Calculate level
equilibrium natorial income:Io
of
Got
The balance market:
of money
y 2I=
+

I (Yir) 0
=
is
+
schedule
y:income
r: interest rate

Money supply:
-

MS = Mo <
Money demanded
 CHAPTERC:NON-LINEAR
EQUATIONS
Solve quadraticequation using "the
formula"
-

-
Solve a
quadraticequation
given jactorization
its
sketch a
graph of quadratio function
a
usingatableof junction
values
-

graph of a quadraticfunction byfindingthe coordinates of the

slatch the
-

intercepts
-

equilibrium priceand quantity given pair

Petermine a
of quadraticdemand
and supply
functions.
 CHAPTERC:NON-LINEAR
EQUATIONS
2.1. Guadaric junction

yx):axlebit a

>
Discriminant:A: b2 4ac

>
Solutions:1=
- b = (b2 -
4a2)
2a

Solve the
following quadratic equations:
= (1155 80)(x55 -80)
502 -80 =0 0
a,
+ =

n2 64 0 A 02-41.86 CO
dy >
+ =
=

(n 4)2 +

= 92
81=
9
d 2x2 9x 5 0 +
+ =
=
A 92 =
-

4.2.5 4)0 =
f12= -
2.2
e) 12 -
44+4 0 =

3x 5x 6 0

I
- +

jy
=

sketch graph of the square function:j(i):

2
a a

*
Domain = R

2 1 2
-

0 I
-

1
7
f
84 8 1 4 O

the
give a
rough slatch
of
the
graph of following
quandratic junction:
f(x) =

- x 8x+ -

12
122 2.1.4
=
+ + 42 -
42-12 ........ maximum point
=
-
(x 4)2 + 4
-

i
7

=
ax2 2 + O

x2 6x 12
-

y
=
-
given the
supply and demand junction:
P a+14Gg
=
22
+

P
Gp 10kp 150
-
- +

Calculate
theequilibrium price
and
quantity.
QS Op Q =
=

92 14G +

22
+ =

- 02 -100 +
150
2
20 240-128 0
+

a =
- 16;G 4 a4
=
=
=

P 94.
=

2.2. Revenue, cost and

project total cost, and profit
slotch the
graphs of the
total revenue,
average cost
-

functions
&

-Final the level that total revenue

of output maximize
the level
Find -

outputthatmaximizes the project

of
-Find the break-even levels
of outputs.
Total revenue TR PQ
Example:given the
Djunction:
=

* -

Q:
quantity P 100
=
-

2Q
Gand
P:Price
express R as a
junctionof
-

Total cost:T2 hence sketch its graph

Fixed cost:FC cost without output (a) For what values QistR=0!
of
-

Cland, equipment, rent,..) (b) Whatis the max value

of
AR?
cost v2 +
Variable with output
vary
-
=

42 FC= +
TC 5 10
2x =

T2
-

Average cost A2
=
=

+R 2100= -

28). Q
- =
-
202 +100 &.

Profit:it TR-T2 2(82 500)

- -
-
=
=

2(82 572 58
=
- -
+

TR 2.(a 572 58
-
=
-
+

(5;50

⑧ I
Example:
given thatyexed cost 1000, variable cost 4 unit.
=
are
Express He and AC as

junctions of G. Hence sketch their

-

graphs.
TC F2 NC 1000
= + = +
4Q
+
4 4 60+ 4
A2 =

= 1000
=
=
x
e

Al

&100 250 300 1000 2000

A2
10
=
+4

AG 14 8 6 5 4.5

W
a 0 +

-00 >

⑧
I
④

Example:In yoxed cost =

4, V2 peruiit=1,(D) junction:P = 10-2Q
Gand sketch
-
hence
obtain an
expression you
interms
of a
graph of
11

againstQ
C) For what values of does
a the
firm break even?
What is the
1) maximum
profit?

Mr.
i TR-T2 P.G
=

=
-
(4 1.0) 10 2a)a (4 0)
+
=
-
-
+
=
- 22 2 6
-
+

=(10-22)G -24 a)
+

i - 2a
=

92
+ -

40
=
Example: -22490 -4 0# Q 0.5;G 4
=
= =
I
Maximum

6.195
pr
Q
max
=
(0.5+ 4) 2.25
I
=

↑max 5.
=
125

⑧ 0.5 2.25 4 Q
W Break/
M

even
points