Business Math

Prep. Year
Sheet 7
Ch.2. Functions, Graphs, and lines
This sheet is going to cover the following topics:
Lines
Applications & Linear Function
Quadratic Functions

First: Lines:

 Slope of a line :
Let p=(x1,y1) and Q=(x2,y2) be two distinct points with x1 ≠ x2 . The slope
m of a line L is defined by the formula

m= (y2-y1) / (x2-x1) x1 ≠ x2

 Slope of a Line:

The slope m of the line through the points (x1,y1) and (x2,y2) is:

rise y y2  y1
m   where x  0
run x x2  x1
 Types of Slope:
1. m = 0, in the case of a horizontal line.

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 2. m = ∞, in the case of a vertical line.

3. m = -ve number, in the case we have a down-ward sloping, or in

other words, there is a –ve relation between x & y.
(e.g., as in the case of demand curve)

4. m = +ve number, in this case we have up-ward sloping, or in other

words there is a +ve relation between x & y.
(e.g., as in the case of supply curve).

Slope = 0
zero

Slope = ∞
+ve slope

-ve slope

We know now how to get a slope of line? But what is the

interpretation of the slope:
 Slope is a ratio of the vertical change in y to the horizontal change in x.
 Average rate of change in y per unit of change in x.
 In other words, how a change in x (independent variable) causes a change
in y (dependent variable).

Equations of a straight line:

Formula Name Equation

1. Point Slope Formula y – y1 = m (x – x1)

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 Formula Name Equation
2. Slope Intercept = Standard y = mx + b
formula
3. Alternative Formula = General
ax + by + c = 0
Linear Form
4. Horizontal Line Y=b
5. Vertical Line X=a

 Equations of Parallel & Perpendicular lines:

Parallel Perpendicular
Slope m1=m2 m1*m2 = -1, or m1= -1/m2

Class Discussion:

Find a general linear equation of a straight line and sketch the line:

Passes though (-1,7) and has slope -5.

Word Problem
Revenue Equation A small business predicts its revenue growth by a straight-
line method with a slope of $50,000 per year. In its fifth year, it had revenues of
$330,000. Find an equation that describes the relationship between revenues, R,
and the number of years, T, since it opened for business.
Determine whether the lines are parallel, perpendicular, or neither:
X+3y=0, x+6y-4=0

Find an equation of the line satisfying the given conditions. Give the
answer in the slope-intercept form if possible:

x
Parallel to y= - - 2 and passing though (1,1)
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Find f(x) if f is a linear function that has the given properties:

f(0)=3, f(4)=-5

Word Problem:
The demand per week for a CD is 26, 000 copies when the price is $ 12 each,
and 10,000 copies when the price is $ 18 each.

1) Find the demand equation for the CD, assuming that it is linear.
2) explain the intercepts
3) graph the function

Word Problem:
Repair Charges A business-copier repair company charges a fixed amount
plus an hourly rate for a service call. If a customer is billed $159 for a one-hour
service call and $287 for a three-hour service call, find a linear function that
describes the price of a service call, where x is the number of hours of service.

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Total Cost – Word Problem:

 The following Table Shows the total cost at two different level of
production:

Quantity Total Cost

100 2500

200 4000

Requirements:

 Find a function that describes the cost of producing x units

 Determine the total cost, total fixed cost, and total variable cost when 300
units are produced
 Graph the function