Essential Mathematics for Economics and Business, 4 th Edition

CHAPTER 1: TRANSPOSE FORMULAE.

John Wiley and Sons 2013

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 Transposing formulae is the same as solving an
equation for a particular variable
Add
Takeorthe
Multiply or
Compare the formula to Square
subtract
square
each
to of
divide each
root
eachside
side
side
eachby N
side
a balance where the
LHS = RHS =
LHS + NN RHS + N
Left hand side =Right hand side

To maintain the balance

every operation on LHS
must also be carried out on
the RHS
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 Given the demand function P = a bQ
Make Q the subject of the formula.

P a bQ

It is easier to work with a positive Q-term

so bring -bQ to the other side P bQ a

Bring +P to the other side bQ a P

aP
Q
b

Divide both sides by b

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 Given the demand function P = a bQ
Evaluate P when a = 200, Q = 150 and b = 0.5

P a bQ Substitute the values given

P 200 0.5(150)
200 75 125
aP
When P a bQ then Q
b

Evaluate Q when a = 200, P = 20 and b = 0.5

200 20 180
Q 360
0.5 0.5
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 Given the average cost function C = a b/Q
Make Q the subject of the formula.
b
It is easier to work with a positive Q-term C a
Q

so bring b/Q to the other side C

b
a
Q

The aim is to isolate Q so bring +C to the other side

b
b Q(a C ) a C
Q
Undo fractions: multiply both sides by Q

b
Divide both sides by (a - C) Q
a C
b
Q
a C
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 Given the average cost function C = a b/Q
b
C a
Q

Evaluate C when a = 300, b = 40 and Q = 2.5

40
C 300
2 .5
300 16 284

Evaluate Q when a = 300, b = 40 and C = 280

b b
C a ...then... Q
Q a C
b 40 40
Q 2
a C 300 280 20
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 Q aP b

To isolate the P-term bring -b to the other side

Qb aP

(Q b) 2
aP
2
Square each side

(Q b) 2 aP
Divide both sides by a
(Q b) 2
P
a
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 Evaluate Q when a = 10, b = 20 and P = 40

Q aP b Substitute the values given

Q 10(40) 20

Q 400 20 20 20 0

Evaluate Q when a = 10, b = 20 and Q = 4

(Q b) 2
Q aP b then P
a

(4 20) 2
Hence P 576
10
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 Given the value of sales, S as a function of time, t (weeks):
Make t the subject of the formula.

S at 2 b
To isolate the t-term bring +b to the other side

S b at 2 Then divide each side by a

S b
t2 Take the square root of each side
a

S b S b
t t
a a

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 Given the value of sales , S as a function of time, t (weeks):

S at 2
b

Evaluate S when a = 0.4, t = 4 and b = 10

Substitute the values given
S (0.4)(4) 2 10 16.4

Evaluate t when a = 0.4, b = 10 and S = 20

S b
S at 2 b then t
a
20 10 10
Hence t 25 5
0.4 0.4
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