ECN3123 TUTORIAL 1

INTRODUCTION REVIEW OF MATHEMATICAL CONCEPTS & EQUILIBRIUM ANALYSIS

1.

Simplify the exponential functions below and solve for the unknowns .
a. 5 3x = 57x-2
b. 3 = 9+5

2. Solve for x in the problems below by means of logarithms.

a. = 7 2
b. = 32 .

c. 4t2 = 46-t
d. e4 ln x - 9 ln y

c. = 8
d. ln (x + 4) = 3

3. Perform the arithmetic operations for the following polynomials.

a. ( + )( )
b. (2x + 9)(3x 8)
4. Solve for x in the equations below.
a. 9(3 + 4) 2 = 11 + 5(4x 1)

b.
16 =
+ 14
3

12

5. Solve the following systems of equations using the

i) Method of substitution
ii) Method of elimination
2+5=3
a. 9+4=13

b.

3
1
+ =5
2
3
5
2
+ =12
2
3

6. Given () = 2 3 5 2 + 8 20, find (5)and(4).

7. David designs a one of the kind sweater T-shirt for international brand in Soho, Los Angeles. His
clients are very impressed and everybody wants the product for their store, so David sets up an
imported T-shirt printing machine in his workplace. Total start-up costs are $450 due to the
availability of a used graphics machine. They estimate that it costs them $5.50 to print each T-shirt.
a. Write a linear function C(x) giving the total cost of producing, sweater T-Shirts.
b. Write a rational function A(x) giving the average cost of producing, sweater T-Shirts.
8. Given the following set of simultaneous equation for two related markets, Toyota (T) and Honda
(H), find the equilibrium conditions for each market.
a. = 82 3 +
= 5 + 15
Equilibrium requires that = in each market.

b. = 92 + 2 4
= 6 + 32

9. Consider the following national income model:

= 0 +
= + 0 + 0
It is given that C=50+0.9Y, 0 =30, and 0 =20. Find equilibrium national income and
consumption.
10. Consider the following Keynesian macroeconomic model and solve for equilibrium Y and C (the
two endogenous variables):
Y=C+I
C = 3000 + (2/3) Y
I = 1000