Business Mathematics and Decision

Analysis
 Quadratic Function : Application
1. The number of bacteria in a refrigerated food is given
by 𝑁 𝑇 = 20𝑇 2 − 20𝑇 + 120, for −2 ≤ 𝑇 ≤ 14 and
where T is the temperature of the food in Celcius. At
what temperature will the number of bacteria be
minimal?
2. The height, h, in feet of an object above the ground is
given by ℎ = −16𝑡 2 + 64𝑡 + 190, 𝑡 ≥ 0 where t is the
time in seconds. Find the time it takes the object to
strike the ground and find the maximum height of the
object.
 Quadratic Function : Application
The value of jennifer’s stock porfolio is given by the
function 𝑣 𝑡 = 50 + 73𝑡 − 3𝑡 2 , where v is the value of the
portfolio in hundreds of dollars and t is the time in months.
How much money did jennifer start with? When will the
value of Jennifer’s portfolio be at a maximum?
 Quadratic Function : Application
The value of Jon’s stock portfolio is given by the function
𝑣 𝑡 = 50 + 77𝑡 + 3𝑡 2 , where v is the value of the
portfolio in hundreds of dollars and t is the time in months.
How much money did Jon start with? What is the minimum
value of Jon’s portfolio?
 Quadratic Function : Application
Find the number of units that produce the maximum
revenue 𝑅 = 900𝑥 − 0.1𝑥 2 . Where R is the total revenue
(in dollars) and x is the number of units sold.
 Quadratic Function : Application
1. A textile manufacturer has daily production costs of
C = 10,000 − 110𝑥 + 0.045𝑥 2 , where C is the total
cost (in dollars) and x is the number of units produced.
How many units should be produced each day to yield a
minimum cost?
2. A manufacturer of light fixtures has daily production
costs of 𝐶 𝑥 = 800 − 8𝑥 + 0.25𝑥 2 , where C is the
total cost (in dollars) and x is the number of units
produced. How many units should be produced every
day to yield a minimum cost?
 Quadratic Function : Application
1. A company weekly revenue in dollars is given by
𝑅 𝑥 = 2000 − 2𝑥 2 , where x is the number of items
produced during a week. What amount of items will
produce the maximum revenue?
2. A company earns a weekly profit of P dollars by selling x
items, according to the equation 𝑃 𝑥 = −0.5𝑥 2 +
40𝑥 − 300. How many items does the company have to
sell each week to maximize the profit?
 Quadratic Function : Application
Advertising revenue for newspaper in the United States for
the years 1985 through 1999 is approximately by the model
𝑅 = −1.03 + 7.11𝑡 − 0.38𝑡 2 , where R is revenue in billions
of dollars and t represents the year with t=5 corresponding
to the year 1985. in what year will revenue be maximum?
 Quadratic Function : Application
Suppose that the demand function for a product is
𝑥 = 𝑓(𝑝)
For example :
𝑥 = 1500 − 50𝑝
Where q equals the quantity demanded in thousands of units.
And p equals the price in dollars.

** Total revenue R from selling x units is stated as the

product of p and x
𝑅 = 𝑝𝑥
Because the demand function state as x as a function of p,
total revenue can be stated as a function of price, or
𝑅 = 𝑝𝑥 = 𝑝. 𝑓 𝑝
= 𝑝 1500 − 5𝑝
= 1500𝑝 − 𝑝2
 Quadratic Function : Application
The demand function for a particular product is
𝑥 = 𝑓 𝑝 = 600,000 − 2500𝑝
Where x stated in units and p stated in dollars. Determine
the quadratic total revenue function, where R is the function
of p. What is concavity of the function? What does total
revenue equal at a price of $50? How many units will be
demanded at this price? At what price will total revenue be
maximized?
 Quadratic Function : Application
The weekly demand function for a particular product is
𝑥 = 𝑓 𝑝 = 2,400 − 15𝑝
Where x is stated in units and p stated in dollars.
Determine the quadratic total revenue function, where R is
the function of p. What is concavity of the function? What
does total revenue equal at a price of $50? How many units
will be demanded at this price? At what price will total
revenue be maximized?
 Quadratic Function : Application
Market surveys of suppliers of a particular product have
resulted in the conclusion that the supply function is
approximately quadratic in form. Suppliers were asked what
quantities they would be willing to supply at different
market prices. Results of the survey indicated that at
market price of $25, $30, and $40 the quantities which
suppliers would be willing to offer to the market were
112.5, 250.0, and 600.0 (thousand) units, respectively.
Determine the equation of the quadratic supply function.
 Quadratic Function : Application
The supply function 𝑥 = 𝑓(𝑝) for a product is quadratic.
Three points which lie on the function are (30, 1,500), (40,
3,600), (50, 6,300).
a. Determine the equation for the supply function
b. Compute and interpret the p intercept
c. What quantity will be supplied at a price of $60?
 Quadratic Function : Application
*Market equilibrium is a situation in which the supply of a
product is exactly equal to its demand.

*Market equilibrium between supply and demand can be

expressed by the equation :
𝑥𝑠 = 𝑥𝑑

𝑥𝑠 represents the supply function

𝑥𝑑 represents the demand function
 Quadratic Function : Application
For example :
Let,
𝑥𝑠 = 0.5𝑥 2 − 200 and 𝑥𝑑 = 𝑥 2 − 100𝑥 + 2,500, 5 ≤ p ≤
45. Determine the market equilibrium price and quantity.
 Quadratic Function : Application
By subtituting 𝑥𝑠 = 0.5𝑝2 − 200 and 𝑥𝑑 = 𝑝2 − 100𝑝 +
2,500 into market equilibrium equation, we obtain
0.5𝑝2 − 200 = 𝑝2 − 100𝑝 + 2,500
The equation can be rearranged so that
0.5𝑝2 − 100𝑝 + 2,700 = 0
The quadratic formula can be used to determine the roots,
− −100 ± −100 2 − 4(0.5)(2,700)
𝑝=
2(0.5)
100 ± 4600
= = 100 ± 67.82
1
 Quadratic Function : Application
𝑝 = $32.18 or p = $167.82

Subtitution of p $32.18 into supply and demand function

results in values 𝑥𝑠= 317.77 ≈ 318 and 𝑥𝑑= 317.55 ≈ 318.
So the market equilibrium occurs when the market price
equals $32.18 and the quantity supplied and demanden
equals 318 units.
 Quadratic Function : Application
1. The supply and demand functions for a product are
𝑥𝑠 = 𝑝2 − 400 and 𝑥𝑑 = 𝑝2 − 40𝑝 + 2600. determine
the market equilibrium price and quantity.
2. The supply and demand functions for a product are
𝑥𝑠 = 4𝑝2 − 500 and 𝑥𝑑 = 3𝑝2 − 20𝑝 + 1000 .
determine the market equilibrium price and quantity.