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I.

Finding Lines
A.

Review Example
1.

Fine equation of line through (-2,-1) and (2,-3)


a)
plug in point to find b

b)
c)

II.

Cost, Revenue, Profit


A.

Cost function gives cost, C, as a function of the number of items x


|OR|

1.
a)
b)

B.

m = the marginal cost or the incremental cost per item


b = the fixed cost

Revenue (Net Sales) is the total income received


1.

( )
a)

C.

( )

p = the marginal revenue or price per item

Profit is the Net Income

|OR| ( )

1.
2.
3.

( )

( )

If profit is negative, then it means there is a loss


Break even means to make neither a profit nor a loss
a)

( )

|OR|

( )

( )

D.
Demand Function expresses demand q (the # of items demanded) as a
function of the unit price p (the price per item)
1.

( )
a)
b)

b = quantity demanded if price is free

E.
Supply Function expresses supply q (the # of items a supplier is willing to
make available) as a function of the unit price p (the price per item)
1.

Same as demand equation

2.
3.

F.

Equilibrium Price is when demand equals supply


1.

G.

b = quantity supplied if price is free


Usually as p increases then q decreases

Examples

1.
You can sell 90 pet chias per week if they are sold for $1 each, but only
30 each week if they are marked at $2 per chia. Your chia supplier is prepared to
sell you 20 chias each week if they are marked at $1 per chia and 100 each week
if they are marked at $2 per chia. Write down the associated demand and
supply functions assuming both are linear. At what price should the chias be
marked so that there is neither a surplus nor a shortage of chias? (equilibrium
price)
a)

(1,90) and (2,30)


demand function

(1,20) and (2,100)


supply function

b = -60

b)
5

equilibrium price
2.
Your family runs a business from your home, making beautiful cakes for
all occasions. Suppose you are currently selling 150 cakes each month at $30
each. You speculate that raising your price by $1 will result in 5 fewer sales. Use
the given info to formulate a demand function, expressing the number of cakes
sold as a function of the price. Find the price that would result in selling no cakes
at all. Suppose that the raw materials for each cake cost you $14 and that your
fixed costs are $1145. Express your profit for your business as a function of the
price and find the price that will result in the highest possible profit.
a)

(30,150) and (31, 145)


5
3

5(3 )

()

b)

c)

III.

Exponents
A. Law of Exponents
1.
2.
3.

B.

4.
5.
6.
7.

(
(
(

8.

( )

( )

Compound Interest
1.

Compound Interest
a)

2.

( )

( )

Logs
1.
2.

Continuous Compounded Interest


a)

V.

Exponential Function
1.

IV.

)
)

Log Rules
a)