ECOM 2202, Mathematics for economics and business II

MATHEMATICS FOR ECONOMICS AND BUSINESS

TUTORIAL
Dr Ndamsa/ Dr Badjo/ Dr Nguegang

Exercise 1:
Given the matrices

A= (−21 24 ) B= (01 2 2
0 5 ) C= ( 35 −20 )
Evaluate: (a) AC (b) CA (c) AB (d) BA
(e) A+C (f) A-C
1. Compare your answer for (a) and (b).
2. Why is it not possible to calculate A+B or A-B?
Hence, state the restrictions on matrix addition and subtraction.
3. Calculate 5A
4 calculate 3I, where I is the 3×3 matrix unit matrix

Exercise 2:
A distributor records weekly sales of personal computers (PCs) in three retail outlets in
different parts of the country (see table 1)? The cost price of each model is:
Table 1: Number of computers sold in each shop
Pentium (basic) Pentium (extra) Pentium (latest)
Shop A 150 320 180
Shop B 170 170. 190
Shop C 201 63 58

Pentium (basic) 480 m.u., Pentium (extra) 600 m.u., Pentium (latest) 1020 m.u.
The retail price of each model in each of the three shops is given in table 2.
Table 2: Selling price of computers in each shop
Pentium (basic) Pentium (extra) Pentium (latest)
Shop A 150 320 180
Shop B 170 170. 190
Shop C 201 63 58
Use matrix multiplication to calculate
(a) The total weekly cost of computers to each shop
ECOM 2202, Mathematics for economics and business II

(b) The total weekly revenue for each model for each shop.
(c) The total weekly profit for each shop.
Which shop makes the greatest overall profit?

Exercise 3.

1 Given the matrix: A= ( 10 −4

−9 ) B= (−74 30)C=(152 −1 −1
0 2 )
Calculate, if possible:
(a) A+B (b) A-B (c) A+4B (d) A+I (e) AI (f) A+C
(g) A+BT (h) BC (i) CB (j) CBT (k) (AB)T (l) C+5I
(m) CTA (n) (BC)T (o) AC+B

2. Given the matrices:

() ( )
1 1 0
A= 2 B=
−2
1 2 0
0 1 −1 (
C= 2 −5
−1 1
)
Determine each of the following, if possible
(a) A+C (b) BT+C (c) BC (d) ATBT (d) BTAT
3. A fast-food chain has three shops, A, B and C. The average daily sales and profit in each
shop is given in the following table:
Units sold
Shop A Shop B Shop C
Burgers 800 400 500
Chips 950 600 700
Drinks 500 1200 900

Units profit
Shop A Shop B Shop C
Burgers 20p 40p 33p
Chips 50p 45p 60p
Drinks 50p 35p 20p

Use matrix multiplication to determine

(a) The prot for each product
(b) The profit for each shop
ECOM 2202, Mathematics for economics and business II

4. The percentage of voter who will vote for party candidates A, B and C is given in the
following table:
A B C No. of voters
Area 1 60% 20% 20% 25 000
Area 2 45% 30% 25% 60 000
Area 3 38% 30% 32% 98 000

Use matric multiplication to calculate the total number of votes for each candidate.
5. Given the following matrices:

()
1
A= (
2 −1
4 3
, ) B= (
0 1
−1 2
, ) C= 5 , D=
3
(
3 1 2
0 1 1 )
(a) Show that AB ≠BA.
(b) Determine the following if possible:
(i) AC (ii) AD (iii) DC (iv) DCCT
Exercise 4. Gaussian elimination
Solve the following equations by Gaussian elimination:
x + y−z=3 (1)
2 x+ y−z=4(2)
2 x+ 2 y + z=12(3)
Exercise 5. Gaussian elimination
Solve the following equations by Gaussian elimination:
2 x + y + z=12(1)
6 x +5 y−3 z=6 (2)
4 x− y +3 z=5(3)

Exercise 6. Cramer’s rule

Use Cramer’s rule to solve the equations:
(a) y=10 x +12 ( b ) P=50−2 Q
4 x+ 2 y=36 P=5+ 3Q

Exercise 7. Find the market equilibrium using Cramer’s rule

Given the supply and demand functions for two related goods, A and B.
ECOM 2202, Mathematics for economics and business II

Good A: {
Qda=30−8 P a +2 P b
Qs a=−15+7 Pa

Good B: {
Qdb=28+ 4 Pa−6 P b
Qs b =12+ 2 Pb

(a) Write down the equilibrium condition for each good. Hence, deduce to equations in Pa
and Pb.
(b) Use Cramer’s rule to find the equilibrium prices and quantities for goods A and B.
Exercise 8. The inverse of a matrix: elimination method
(a) Find the inverse of the matrix

( )
1 0 −2
D= 2 2 3
1 3 2

By Gauss-Jordan elimination;
(b) show that D D−1=I