(01) (a) Describe the importance of graphs in conveying the information.

(b)Define “gradient“ and “intercept “of a straight line graph?

The gradient of a line is a measure of its steepness.

(c) An iso-cost curve shows the different combinations of two raw materials that can be

purchased with a given budget B for a factory. ABC factory allocate Rs 8000 for

purchasing raw material A and raw material B.

Cost per item A and B is Rs100 and Rs 400 respectively.

Let number of A items purchased is X and number of B items purchased is Y

(i) Obtain an equation involving X and Y.

(ii) Sketch the iso-cost curve. (Graph of X and Y.)

(iii) Management decides to increase the budget by 50%.

Obtain the new equation of X and Y and sketch the new graph of X versus Y.

(c) Demand for a product, Q is known to be a linear function of its price P. the

relationship has the form,

Q = a P + b, where a, and b are constants.

When the price is Rs. 2/=, the demand is 1000.

The change of demand per unit increase in price ( ) is, -100..

Write down the demand equation and sketch it.