Chapter 1: Linear Equations: Math 121:: Mathematical Applications

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Chapter 1: Linear Equations

Math 121: : Mathematical Applications

Dr. Trevor Leach


tleach@lander.edu
Lander University

Chapter 1: Linear Equations 1 / 79 Math 121: : Mathematical Applications


Overview

1 1.1 Functions & Problem Intercepts


Solving Slope and Rate of Change
What is a function? Writing Equations of Lines
Evaluating a Function 4 1.4 Systems of Equations
Problem Solving Graphical Solutions
2 1.2 Solutions to Linear Solving By Substitution
Equations Solving By Elimination
Equations in 1 Variable 5 1.5 Applications
Solving linear equations in 1 Profit, Revenue, and Cost
Variable Supply, Demand, and
3 1.3 Graphs of Linear Functions Market Equilibrium

Chapter 1: Linear Equations 2 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving

1.1 Functions & Problem Solving

Chapter 1: Linear Equations 3 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving What is a function?

What is a function?

Chapter 1: Linear Equations 4 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving What is a function?

What is a function?

Definition (function)
A function f is a special relation between x and y such that each
input x results in exactly one y . The symbol f (x) is read “f of x”
and is called the value of f at x

Chapter 1: Linear Equations 5 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving What is a function?

What is a function?

You can think of a function as a machine: you give it input, and it


spits out exactly one output based on the input you give it.

Chapter 1: Linear Equations 6 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving Evaluating a Function

Evaluating a Function

Chapter 1: Linear Equations 7 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving Evaluating a Function

Evaluating a Function
To evaluate a function, think of x as simply a place holder.

When we want to evaluate a function f at, say, the point x = 3, we


just replace x with 3.

For instance, if f (x) = 3x 2 + 4x − 7, then


f (3) = 3(3)2 + 4(3) − 7 = 32.

NOTE: When we substitute an equivalent expression ALWAYS


substitute using parentheses.

For example f (3a + 4) = 3(3a + 4)2 + 4(3a + 4) − 7

Chapter 1: Linear Equations 8 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving Evaluating a Function

Example
Let f (x) = 2x 2 + 5x and evaluateeach function value.
(a) f (−2) (b) f (0) (c) f 12 (d) f (4)

Chapter 1: Linear Equations 9 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving Problem Solving

Problem Solving

Chapter 1: Linear Equations 10 / 79 Math 121: : Mathematical Applications


1.1 Functions & Problem Solving Problem Solving

Problem Solving: Polya’s Method


What is the most
important step?
I The First!
(But Why?)
I If you can’t
understand the
problem, can
you ever hope
to persevere in
solving it?

So how do we make sure we understand the problem?


I Look for the question mark!
Chapter 1: Linear Equations 11 / 79 Math 121: : Mathematical Applications
1.1 Functions & Problem Solving Problem Solving

Example (Depreciation)
A business is purchased for $122,880 and depreciated over a period of
10 years. It’s value y is related to the number of months of service x
by the equation
y = 122, 880 − 1, 024x
How much was the business worth at the beginning of the 10 year
period?

Chapter 1: Linear Equations 12 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations

1.2 Solutions to Linear Equations

Chapter 1: Linear Equations 13 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Equations in 1 Variable

Equations in 1 Variable

Chapter 1: Linear Equations 14 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Equations in 1 Variable

Definition Definition
An expression is a meaningful An equation is a statement that
string of numbers, variable, & relates two expressions to be
operations. equal.

Example Example
3x − 2 3x − 2 = 7
Definition
A solution is a value for the variable(s) that make a statement to be
true.
Example
x = 3 is a solution to the statement 3x − 2 = 7. Since
3(3) − 2 = 7
9−2=7
7 = 7X
Chapter 1: Linear Equations 15 / 79 Math 121: : Mathematical Applications
1.2 Solutions to Linear Equations Equations in 1 Variable

Equations in 1 Variable

Definition
A solution set is the set of ALL possible solutions. Equations that
are true for all possible values are called identities.

Example
2(x − 1) = 2x − 2 is true for all possible values for x.

Chapter 1: Linear Equations 16 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Solving linear equations in 1 Variable

Chapter 1: Linear Equations 17 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

3 Tools For Solving

I Substitution Property:
The equation formed by substituting one expression for an
equivalent expression is equivalent to the original equation.

Example
Since 2(x + 1) = 2x + 2, then by the
substitution property the equation
2(x + 1) = 4

is equivalent to the equation


2x + 2 = 4.

Chapter 1: Linear Equations 18 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

3 Tools For Solving

I Addition Property:
The equation formed by adding the same quantity to both
sides of an equation is equivalent to the original equation.

Example
Using the addition property
2x + 2 = 4

is equivalent to the equation


2x + 2 + (−2) = 4 + (−2).

Chapter 1: Linear Equations 19 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

3 Tools For Solving

I Multiplication Property:
The equation formed by multiplying both sides of an equation by
the same nonzero quantity is equivalent to the original equation.

Example
Using the multiplication property
1
x =6
3
is equivalent
 tothe equation
1
3 x = 3 (6)
3

Chapter 1: Linear Equations 20 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Solving Linear Equations


The following procedure is based on three properties of equality and
with it we can solve any linear equation in one variable.

Procedure Example: 3x4 + 3 = x−13


1. Eliminate Fractions 12 3x4 + 3 = 12 x−1 3
2. Remove Parenthesis 9x + 36 = 4x − 4
3. Use addition property to isolate all 9x + 36−4x−36 = 4x − 4−4x−36
terms with a variable to one side. 5x = −40
4. Use multiplication property to isolate 5x
5
= −40
5
variable gives x = −8
3(−8)
5. Check the solution by substitutions 4
+ 3 = −3 = (−8)−1
3
X

Chapter 1: Linear Equations 21 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Example (Solve the following linear equations)


2z 3x+1 x
(a.) 3
= −6 (b.) 2
= 3
−3

Chapter 1: Linear Equations 22 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Example (Population)
Using data from 1980 and projected to 2050, the number of
pupper/doggos is given by

y = 0.876x + 6.084 million


Where x is the number of years after 1980. When will the number of
pupper/doggos equal 36.74 million?

Chapter 1: Linear Equations 23 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Applications in Business

Definition
Profit is the amount of money earned (or lost) by producing x units.

Chapter 1: Linear Equations 24 / 79 Math 121: : Mathematical Applications


1.2 Solutions to Linear Equations Solving linear equations in 1 Variable

Example (Applications in Business)


A company making fidget spinners has a profit function modeled by:
5x − 4P = 1200
Where P is the profit of making x amount of fidget spinners.
A) How many units must be sold to make a profit of $150?
B) Solve the equation for P in terms of x. Find the profit when 240
units are sold.

Chapter 1: Linear Equations 25 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions

1.3 Graphs of Linear Functions

Chapter 1: Linear Equations 26 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions

Linear Functions
Definition
A linear function is a function that can be written in the form

y = f (x) = ax + b

where a and b are constants.

Example
All of the following are linear
functions,
1. y = 3x + 4
2. 21 x − 2y = 9
3. y = 0
Chapter 1: Linear Equations 27 / 79 Math 121: : Mathematical Applications
1.3 Graphs of Linear Functions Intercepts

Intercepts

Chapter 1: Linear Equations 28 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Intercepts

Intercepts

The graph of a linear function is a line, only two distinct points are
necessary to determine its graph. It is frequently possible to use
intercepts to graph a linear function.

Definition
The point(s) where a graph intersects the x-axis are called the
x-intercept points, and the x-coordinates of these points are the
x-intercepts. The point(s) where a graph intersects the y-axis are
called the y-intercept points, and the y-coordinates of these points
are the y-intercepts.

Chapter 1: Linear Equations 29 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Intercepts

Intercepts

To find intercepts:
1. To find the y -intercept(s) of the graph of an equation,
set x = 0 in the equation and solve for y .
Note: A linear function of x has exactly one y -intercept.
2. To find the x-intercept(s), set y = 0 and solve for x.
Note: A linear function of x has at most one x-intercept.

Chapter 1: Linear Equations 30 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Intercepts

Intercepts
For the function x + y = 1.
1. To find the y -intercept(s) of the graph of an equation,
set x = 0 so (0) + y = 1 ⇒ y = 1 and our y -intercept is (0, 1)
2. To find the x-intercept(s), set y = 0 and solve for x. so
x + (0) = 1 ⇒ x = 1 and our y -intercept is (1, 0).

4
Note: When we found x = 1 and
y = 1; these two things
2
DO NOT go together. They are
separate things. The point(1,1) is
NOT on the line!
−1 1 2 3 4 5

−2
Chapter 1: Linear Equations 31 / 79 Math 121: : Mathematical Applications
1.3 Graphs of Linear Functions Intercepts

Example
Find the intercepts and graph the following.
(a.) 3x + 2y = 9 (b.) x = 4y

Chapter 1: Linear Equations 32 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Slope and Rate of Change

Slope and Rate of Change

Chapter 1: Linear Equations 33 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Slope and Rate of Change

Rate of Change

Definition
The rate of change of a linear function is
called the slope of the line.

For the graph of a linear function, the ratio


of the change in y to the corresponding
change in x measures the slope of the line.
Note:
I The slope of a vertical line is undefined.

Chapter 1: Linear Equations 34 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Slope and Rate of Change

Slope and Rate of Change


The slope of any non-vertical line
passing through points (x1 , y1 ) &
(x2 , y2 ) is

∆y y2 − y1
m= =
∆x x2 − x1
Where ∆y (read as “delta y ”)
means “change in y ”.

And ∆x (read as “delta x”)


means “change in x”. Note:
I The slope of a vertical line is I The slope of a horizontal line
undefined. is m = 0.

Chapter 1: Linear Equations 35 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Slope and Rate of Change

Slope and Rate of Change

To find the slope of the line passing through (−2, 1) & (4, 3) we
compute
3−1 2 1
m= = =
4 − (−2) 6 3
Observe that it is also,
1−3 −2 1
m= = =
−2 − 4 −6 3

Chapter 1: Linear Equations 36 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Slope and Rate of Change

Example
Find the slope of
(a) line `1 , passing through (3, 0) and (4, −3)
(b) line `2 , passing through (−2, 1) and (−2, 4)
(c) line `3 , passing through (1, 4) and (2, 4).

Chapter 1: Linear Equations 37 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Writing Equations of Lines

Chapter 1: Linear Equations 38 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Point-Slope Form

Definition
The equation of the line passing through the
point (x1 , y1 ) and with slope m can be
written in the point-slope form

y − y1 = m(x − x1 )

Chapter 1: Linear Equations 39 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Point-Slope Form

To find the equation of the line passing through (−2, 1) & (4, 3) we
compute
3−1 2 1
m= = =
4 − (−2) 6 3
Then we use point-slope form
1
y −1= (x − (−2))
3
OR
1
y −3= (x − 4)
3

Chapter 1: Linear Equations 40 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Example
Write an equation for each line that passes through (1, 2) and has
(a.) slope 32 (b.) undefined slope (c.) point (2, 3) also on the line.

Chapter 1: Linear Equations 41 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Writing Equations of Lines

In general, vertical lines have undefined slope and the equation form
x = a, where a is the x-coordinate of each point on the line.

Horizontal lines have m = 0 and the equation form y = b, where b


is the y -coordinate of each point on the line.

The point-slope form, with the y -intercept point (0, b), can be used
to derive a special form for the equation of a line.

y − b = m(x − 0)
⇒ y = mx + b

Chapter 1: Linear Equations 42 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Slope Intercept Form

The slope-intercept form of the equation of a line with slope m and


y -intercept b is
y = mx + b
Note:
I If a linear equation has the form y = mx + b, then the coefficient
of x is the slope and the constant term is the y -intercept.

Chapter 1: Linear Equations 43 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Example (Population)
The population of guinea pigs, (in thousands), projected from 2000
to 2060 can be modeled by:

y = 1125.9x + 142,690

Where x is the number of years after 2000.


A) Find the slope and y -intercept
B) What does the y-intercept tell us?
C) Interpret the slope

Chapter 1: Linear Equations 44 / 79 Math 121: : Mathematical Applications


1.3 Graphs of Linear Functions Writing Equations of Lines

Writing Equations of Lines

Forms of Linear Equations

General Form : ax + by + c = 0
Point-Slope Form : y − y1 = m(x − x1 )
Slope-Intercept Form : y = mx + b
Vertical Lines : x = a
Horizontal Lines : y = b

Chapter 1: Linear Equations 45 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations

1.4 Systems of Equations

Chapter 1: Linear Equations 46 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations

Definition
A system of equations is 2 (or more)
equations. A solution of a system of equations is
a point (x, y ) that are solutions to all equations.

When a system has two equations, a solution is


an ordered pair (x, y) that satisfies both
equations.
Note:
I It is possible for a system to have no
solution or infinitely many solutions.

Chapter 1: Linear Equations 47 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Graphical Solutions

Chapter 1: Linear Equations 48 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Graphical Solutions

We have graphed linear equations in two variables and observed that


the graphs are straight lines. Each point on the graph represents an
ordered pair of values (x, y ) that satisfies the equation, so a point of
intersection of two (or more) lines represents a solution to both (or
all) the equations of those lines.

We can use graphing to find the solution of a system of equations.

Chapter 1: Linear Equations 49 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Three Special Cases

In order to discuss three special cases, we will use Desmos to solve the
systems of linear equations, and describe the graphs of each system.
a. (
2x + 3y = 12
4x + 6y = 30
b. (
8x + 6y = 24
4x + 3y = 12
c. (
2x + 3y = 4
x − 2y = 3

Chapter 1: Linear Equations 50 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Three Special Cases

a. (
2x + 3y = 12
4x + 6y = 30

No Solution

Chapter 1: Linear Equations 51 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Three Special Cases

b. (
8x + 6y = 24
4x + 3y = 12

Infinitely many solutions

They are the same line!

Chapter 1: Linear Equations 52 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Graphical Solutions

Three Special Cases

c. (
2x + 3y = 4
x − 2y = 3

One Solution

Chapter 1: Linear Equations 53 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Substitution

Solving By Substitution

Chapter 1: Linear Equations 54 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Substitution

The Substitution Method

To solve using the substitution method:


1. Solve one of the equations for one of the variables
(e.g., y = 100–x).
2. Substitute the resulting expression into the other equation.
3. Solve this “new” linear equation.
4. Substitute the solution into either of the original equations to
find the value of the other variable.
5. Check the solution in both of the original equations.

Chapter 1: Linear Equations 55 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Substitution

The Substitution Method


(
4x + 5y = 18 (1)
Solve the system
3x − 9y = −12 (2)

Chapter 1: Linear Equations 56 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

Solving By Elimination

Chapter 1: Linear Equations 57 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

The Elimination Method

1. Write the equations in such a way that the like terms are aligned.
2. Multiply all terms (i.e., both sides) of one equation by a
constant—and possibly all terms of the other equation by a
different constant—so that one of the sets of like terms has
opposite coefficients. (e.g., 4x & -4x)
3. Add the two equations and solve.
4. Substitute the solution into either of the original equations to
find the value of the other variable.
5. Check the solution in both of the
original equations.

Chapter 1: Linear Equations 58 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

The Elimination Method


(
4x + 5y = 18 (1)
Solve the system
3x − 9y = −12 (2)

Chapter 1: Linear Equations 59 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

Example (Concert Tickets)


A concert promoter needs to make $42,000 from the sale of 1,800
tickets. The promoter charges $20 for standard tickets and $30 for
premium tickets. How many tickets of each type must be sold to
yield the $42,000?

Chapter 1: Linear Equations 60 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

Example (Investments)
Suppose that your friend has $10,000 invested in two funds. Fund A
yields an annual return of 10%, and Fund B returns 15% per year on
the investment. The total annual return from the two investments is
$1,200. How much has your friend invested in each of the funds?

Chapter 1: Linear Equations 61 / 79 Math 121: : Mathematical Applications


1.4 Systems of Equations Solving By Elimination

Example (Mixture Problem)


A nurse has two solutions that contain different concentrations of a
certain medicine. One is 20% the other is 5%. How many cubic
centimeters of each should they mix to obtain 10 cc of a 6.5%
solution?

Chapter 1: Linear Equations 62 / 79 Math 121: : Mathematical Applications


1.5 Applications

1.5 Applications

Chapter 1: Linear Equations 63 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Profit, Revenue, and Cost

Chapter 1: Linear Equations 64 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Profit, Revenue, and Cost

The profit a firm makes on its product is the difference between the
amount it receives from sales (its revenue) and its cost.

If x units are produced and sold, we can write

P(x) = R(x) − [ C (x) ]

Where

P(x) = profit from selling x units


R(x) = revenue from selling x units
C (x) = cost from selling x units

Chapter 1: Linear Equations 65 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Revenue

In general, Revenue is found by using the equation

Revenue = (price per unit)(number of units)

Chapter 1: Linear Equations 66 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Cost

The Cost is composed of two parts: fixed costs and variable costs.

Fixed Costs (FC), such as depreciation, rent, utilities, and so on,


remain constant regardless of the number of units produced.

Variable Costs (VC) are costs directly related to the production of


each unit produced such as materials. Thus

Cost = VC · (number of units) + FC

Chapter 1: Linear Equations 67 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Example
Suppose a firm manufactures MP3 players and sells them for $50
each. The costs incurred in the production and sale of the MP3
players are $200,000 plus $10 for each player produced and sold.
Write the profit function for the production and sale of x players.

Chapter 1: Linear Equations 68 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Marginals

Definition
The marginal profit (MP), is the amount of profit
each addition unit sold produces.
The marginal revenue (MR), is the amount of
revenue each addition unit sold produces.
The marginal cost (MC ), is the amount of cost each
addition unit sold produces.
Note:
I MP = Slope of P(X )
I MR = Slope of R(X )
I MC = Slope of C (X )
Chapter 1: Linear Equations 69 / 79 Math 121: : Mathematical Applications
1.5 Applications Profit, Revenue, and Cost

Example
Suppose that the cost (in dollars) for a product is C = 21.75x + 4890.
What is the marginal cost for this product, and what does it mean?

Chapter 1: Linear Equations 70 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Break Even Analysis

Chapter 1: Linear Equations 71 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Break Even Analysis

Definition
Break Even is when you don’t lose or gain money, that is P(x) = 0.
Note:

P(x) = 0 ⇐⇒ R(x) − C (x) = 0


⇐⇒ R(x) = C (x).

So another way to find the break even point is to set R(x) = C (x).

Chapter 1: Linear Equations 72 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Example
A manufacturer sells a product for $10 per unit. The manufacturer’s
variable costs are $2.50 per unit and the cost of 100 units is $1,450.
How many units must the manufacturer produce each month to
break even?

Chapter 1: Linear Equations 73 / 79 Math 121: : Mathematical Applications


1.5 Applications Profit, Revenue, and Cost

Graphing the previous example we see that if we sell less than 160
units it results in a negative profit (losing money) and if we sell more
than 160 units it results in a positive profit (gaining money).

Chapter 1: Linear Equations 74 / 79 Math 121: : Mathematical Applications


1.5 Applications Supply, Demand, and Market Equilibrium

Supply, Demand, and Market Equilibrium

Chapter 1: Linear Equations 75 / 79 Math 121: : Mathematical Applications


1.5 Applications Supply, Demand, and Market Equilibrium

Definition
Market equilibrium occurs when the quantity of a
commodity demanded is equal to the quantity supplied.

Demand by consumers for a commodity is related to the


price of the commodity. The law of demand states that
the quantity demanded will increase as price decreases and
that the quantity demanded will decrease as price increases.

The law of supply states that the quantity supplied for


sale will increase as the price of a product increases.

Chapter 1: Linear Equations 76 / 79 Math 121: : Mathematical Applications


1.5 Applications Supply, Demand, and Market Equilibrium

If the supply and demand curves for a commodity are graphed on the
same coordinate system, with the same units, market equilibrium
occurs at the point where the curves intersect.
The price at that point is the equilibrium price, and the quantity at
that point is the equilibrium quantity.

Chapter 1: Linear Equations 77 / 79 Math 121: : Mathematical Applications


1.5 Applications Supply, Demand, and Market Equilibrium

Example
Find the market equilibrium point for the following supply and
demand functions.

Demand: p = −3q + 36
Supply: p = 4q + 1

Chapter 1: Linear Equations 78 / 79 Math 121: : Mathematical Applications


1.5 Applications Supply, Demand, and Market Equilibrium

Example
A group of wholesalers will buy 50 Dryers per month if the price is
$200 and 30 per month if the price is $300. The manufacturer is
willing to supply 20 if the price is $210 and 30 if the price is $230.
Assuming both supply and demand are linear functions, find the
equilibrium point for the market.

Chapter 1: Linear Equations 79 / 79 Math 121: : Mathematical Applications

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