its a business maths unit 1 summary

1. Exercise -1(A)
1. Write the equation 2y + 5x – 16 = 0 in the form of y = f(x). Also find the slope and intercepts formed
by the line.
2. Find the equation of the straight line passing through the point (3,6) and (-5,2).
3. Find the equation of the straight passing through the point (2,7) and having slope is ¾.
4. Find the equation of the straight line when slope = 2 and y intercept = -3 .
1. Find the inverse function of f(x) = ax + b .
1. A market has a linear demand schedule with a slope of -10/3. when price is Rs 8 quantity sold is 24
units. Where does this demand schedule hit the price and quantity axes? What is the price if quantity
sold is 15 units? how much would be sold at a price of Rs 4?
2. For a linear supply function, if the price off pant increases from Rs 1000 to Rs 1200, the supply of the
pant increases 2200 units to 2400 units. Find the supply function in the form of P = f(Q) . Estimate the
quantity of pant supplied at the price of Rs 800. What must be the price of pant so that the quantity
supplied will be 3000 units?
Exercise -1(B)
Exercise -1(C)

2. 1.The total cost for initial setup for manufacturing Anti- septic cream is Rs 50000. The
additional cost for producing each unit is Rs 60. if each Anti – septic cream is sold at Rs
100. Then find the followings:
a. Cost function . b. Revenue function . c. Profit function . d. Break even point
e. Total cost at a production level 20 . f. Total revenue at a production level 20
g. Profit at a production level 20 . h. If the company wants to make a profit of Rs 40000,
how many outputs should be produced?
2. The demand function for a good is Q = 45 – 3P. Fixed cost is Rs 60 and the variable
cost for each additional unit is Rs 5.
a. Express the total cost function and the total revenue function in terms of Q.
b. Find the break even point.
c. Graph the total cost function and the total revenue function on the same graph.
3. A form has a fixed cost of Rs 2400 and the variable cost for each article is Rs 150. find
the total cost function and the total cost of 500 articles.
Exercise -1(D)

3. 1. Given demand function for a good as P = 1000 – 0.5Q, determine the coefficient of point
elasticity of demand when P = Rs 400. Interpret the result. If the price of good increases by
12%, calculate the percentage change in quantity demanded.
2. Suppose that when price of Pineapple rises from Rs 40 to Rs 90 per kg, the quantity
demanded falls from 500 units to 200 units.
a. Calculate the are elasticity of demand for pineapple in this price range.
b. if the price of pineapple were increase by 25%, what would be the percentage change in
the quantity demanded?
3. For supply function for commodity is q = 2p – 40.
a. Calculate the elasticity of supply when price increases from Rs 40 to Rs 60.
Interpret the result
b. Calculate the percentage change in quantity supplied in response to a price increase of
10% when P = Rs 40.
4. For supply function for commodity is P = 20 + 0.5Q a. Calculate the elasticity of supply
when price increases from Rs 80 to Rs 100. Interpret the result
b. Calculate the percentage change in quantity supplied in response to a price increase of
10% when P = Rs 80.
Exercise -1(E)

4. 1. A consumer has as income of Rs 2800 to spend on two goods X and Y whose per unit price are Rs 140 and
Rs 100 respectively. Fine the equation of the budget line
a. Fine the equation of the budget line.
b. Fine the slope of the budget line.
c. What is the maximum number of good Y that can be purchased with the given budget?
Exercise -1(G)
1. The following table shows the annual sales of certain goods.
years 2013 2014 2015 2016 2017 2018
No. of goods 35 47 54 62 71 88
a. Find the equation of the trend line method of least square.
b. Estimate the number of sales of goods in 2020.
2. Determine the equation of the trend line by using least square method from the following data.
x 5 8 7 10 9
y 4 5 3 2 6
Also estimate the value of y when x= 20
Exercise -1(F)

5. 3. The following are the annual sales of certain goods in thousand units.
years 2010 2011 2012 2013 2014 2015 2016
No. of goods in ‘000’ units 35 47 54 62 71 88 96
a. Determine the equation of the trend line by the method of least square.
b. Estimate the number of sales of goods in 2022.
4. Following are the data relating to the annual profit of the company to its annual
advertising expenditure in lakh rupees.
Advertising Expenditure in
Lakh Rs
20 25 28 32 38 45 50
Profit in lakh Rs 40 50 65 90 115 130 180
Determine the equation of the trend line by the method of least square.

6. Exercise 1.3
1. The supply function is 2P – 3Q = 30, how many units will be marked when unit price is Rs 45?
2. A market has a linear demand schedule with a slope of -0.3. When price is Rs 3 quantity sold is 30 units.
Where does this demand schedule hit the price and quantity axes? What is the price if quantity sold is 20
units? Compute price elasticity of demand at this level.
3. If 300 units of mobiles are sold when price is Rs 8000 and 500 units of mobile are sod when price is
6000. determine the demand equation in the form P = f(Q). What would be the price at demand of 600
mobiles?
Exercise 1.5
1. Given the demand function of TV, P = - 0.04Q + 120. determine number of digital box if elasticity = -3/2.
2. If the income of a teacher increases from Rs 3200 to Rs 4000, then demand increases from 50 units to
100 units. Find the income elasticity of demand.
3. The demand function Q = 2000 – 4P where q is the no. of mobile toys demanded at Rs P each.
a. Derive an expression for the point elasticity of demand in terms of P only.
b. Calculate the price elasticity ar each of the following prices: P = 100,250,400.
Exercise 1.6
1. Suppose price of X is Rs 50 and that of Y is Rs 80. Mr. A has Rs 5000 per month to spend on X and Y.
Show his equilibrium point he allocates entire budget equally on two goods.