BA 1003

BUSINESS MATHEMATICS
LECTURE 2
BUSINESS EQUATION

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Functions and Graphs

• A function is a rule describing the relationship between

variables.
• Using the notation 𝑦 = 𝑓(𝑥), we are indicating, in a type of
shorthand, that the variable 𝑦 depends upon (is a function
of) some other variable 𝑥.
• We could then say that 𝑦 is the dependent variable and 𝑥 is
the independent variable.
• The function or rule describing the relationship between
variables may be specified more precisely.
• Thus, 𝑦 = 𝑓 𝑥 = 3𝑥 + 2, will tell us that 𝑦 takes the value
2 when 𝑥 = 0 and rises by 3 units for every unit rise in 𝑥.

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Linear Function
• Where the highest power of the independent variable is 1,
then we have a linear function.
• In general form,
𝑦 = 𝑚𝑥 + 𝑐
where 𝑐 is the vertical intercept and 𝑚 is the gradient
• Graph:

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Gradients to graphs
• The slope or gradient of the line joining two points
measures how “steep” the line is and is defined as the
fraction:

𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑡ℎ𝑒 𝑦 − 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑖𝑛𝑡𝑠

𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑡ℎ𝑒 𝑥 − 𝑐𝑜𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑖𝑛𝑡𝑠

• Example: Gradient between 𝑥1 , 𝑦1 and 𝑥2 , 𝑦2

𝑦2 − 𝑦1
𝐺𝑟𝑎𝑑𝑖𝑒𝑛𝑡 =
𝑥2 − 𝑥1

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Quadratic Function
• Where the highest power of the independent variable is 2,
then we have a quadratic function.
• In general form,
𝑦 = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐
o The shape of this graph is called a parabola
o U-shaped where 𝑎 is positive
o ∩-shaped where 𝑎 is negative
o The vertical intercept be determined by the value of 𝑐
• Graph:

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• To solve a quadratic equation
o Factorisation
o Quadratic formula
−𝑏± 𝑏2 −4𝑎𝑐
𝑥=
2𝑎
o Completing the square
o Calculator ^.^

Example: Solve 𝑥 2 + 2𝑥 − 15 = 0

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Prepared by: Eve Tan JK
Simultaneous Equations
• In business situations we may, for example, need to find the
price at which supply equals demand.
• We call this the equilibrium price as it balances both supply
and demand.
• Put another way, it is the price which solves both the
demand and supply equations at the same time.
• Methods to solve simultaneous equations:
o Elimination
o Substitution

Example: Solve the simultaneous equations

6𝑥 + 𝑦 = 15
4𝑥 + 𝑦 = 11

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• By using elimination method:

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• By using substitution method:

Prepared by: Eve Tan JK

Prepared by: Eve Tan JK