University of Modern Sciences & Arts (MSA) Functions /Basic Terms

Mathematics For Economists I (ECO-113 ) Sheet-1

SECTION (I): THEORETICAL STUDY:

(Q1) Define the following terms:

1. A mathematical function 2. Domain of a function

3. Range of a function 4. Total revenue
5. Total cost 6. Total profit
7. Demand 8. Supply
9. Demand function 10. Supply function
11. Price 12. Market equilibrium

(Q2) Identify which of the following is True and which is False and rewrite
the exact statement for the false ones.

1. The relation between price and demand of a product is usually direct

(positive).
2. As the price of a particular product increases the quantity demanded
usually decreases.
3. A supplier would be willing to offer more of his product to the market if
the price of the commodity increases.
4. If total revenue is greater than total cost then we have net profit or gain.
5. Breakeven occurs when the total cost of producing a product exceeds
the total revenue resulting from selling it.
6. A positive profit value indicates a situation where we have net gain.
7. Market equilibrium occurs when quantity supplied equals quantity
demanded.
8. There exists one price only at which the market is said to be at
equilibrium.

SECTION (II): PROBLEM SOLVING

(Q1) For the following functions:
a) Determine f(0) and f(-2).
b) Define the domain of the function.

1. 2.
2 3
f (x )=4 x 20 f (x )=25x

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University of Modern Sciences & Arts (MSA) Functions /Basic Terms
Mathematics For Economists I (ECO-113 ) Sheet-1

3. 4.
f (x )= x +9
2
f (x )= x 216
5. 6.
10 f ( x )=
100
f (x )=
4x x 2 4

(Q2) The value of a truck is estimated by the function:

V =f (t )=21 , 0003000t
Where V is the value in $ and t is the age of the truck in years.

a) What type of function is this?

b) What is the original value of the truck?
c) What is the value after 4 years?
d) When will the value of the car equal 0?

(Q3) Total revenue from selling a particular product depends upon the price
charged per unit according to the function:
2
R=f ( p)=1500 p50 p
Where R and p are stated in $.
a) What is the type of the function?
b) What is the total revenue expected to equal if the price is $10?
$20? $30?

(Q4) Given the function:

C=f (q )=15 q+80 , 000

Where C is the total cost (in$) of producing q units of a certain product.
a) What is the type of the function?
b) What is the total cost if 1000 units are produced?
c) Determine the fixed costs.

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University of Modern Sciences & Arts (MSA) Functions /Basic Terms
Mathematics For Economists I (ECO-113 ) Sheet-1

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