excel exercises chapter 2

7/24/2019 Excel Exercises Chapter 2

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Excel Exercises Chapter 2

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www.wiley.com/college/bradley

John Wiley and Sons 2013


Excel skills required: See text section 2.8 and PowerPoint slide for chapter 2

1. Enter data onto an Excel spreadsheet

2. Enter formulae to calculate the y-coordinates from the equationy = f(x)

3. Graph plotting: line graphs; XY scatter (scatter-plots).

Mathematics required from chapter 2;

Plot straight lines from the equation of the line

Formulate the equation of a line given its slope and intercept. Plot the line.

Describe and interpret linear function in the context of the problem given.

Given a verbal description of demand, supply, cost and revenue, write down the

equation of the corresponding linear model.

Define and calculate the price elasticity of demand

1. Plot the following lines on the same graph.

(a)y = x (b)y = x+ 10 (b)y = x- 5

What characteristic do these lines have in common?

2. Plot the following lines on the same graph.

(a)y =2x+ 10 (b)y =4x+ 10 (b)y = 105x

What characteristic do these lines have in common?

3. Two lines havea common intercept of 4 but (i) one line has a slope of 2 while

(ii) the other has a slope of -2.

(a) Write down the equation of each line.

(b) Plot the two lines on the same graph.

Does the graph confirm the answers in (a)?

4. For each of following graphs (a), (b) and (c) state

(i) the slope of the line (ii) the intercept (iii) the equation of the line


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Graph 4(a)

0

2

4

6

8

10

12

14

16

-4 -2 0 2 4 6 8 10 12

x

y

Graph 4(b)

-15

-10

-5

0

5

10

15

20

25

30

35

-6 -4 -2 0 2 4 6 8 10 12

x

y

Graph 4(c)

-20

-15

-10

-5

0

5

10

15

20

25

-6 -4 -2 0 2 4 6 8 10 12

x

y

5. The demand function for seats in the front stalls concert tickets is given by the

equationP= 4004Qwhere


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Pis the price per ticket and Qis the number of tickets (quantity) demanded

(a) Calculate the demand schedule for Q= 0 to Q= 100 in intervals of 10.

(b) Plot the demand schedule from Q= 0 to Q= 100.

(c) From the graph estimate the demand when (i) Q= 45 (ii) Q= 100.

Are these answers economically meaningful?

Confirm answers to (c) algebraically.

6. The supply function for seats in the front stalls concert tickets is given by the

equationP= 40 + 5Qwhere

Pis the price per ticket and Qis the number of tickets (quantity) sold.

(a) Calculate the supply schedule for Q = -20 to Q = 80 of women in paidemployment.

(b) Plot the supply schedule for Q= -20 to Q= 80.

(c) From the graph estimate the number of seats supplied when (i) Q= 45 (ii)

Q= 100.

Are these answers economically meaningful?

Confirm answers to (c) algebraically.

Note:

In questions 7 to 11, you may find it more convenient to work in units of , 000.

7. A group entrepreneurs set up a company to specialise in house renovation

(including insulation) services. Their monthly fixed costs are 240000 and

variable costs are4000 for the average house.

(a) Write down the equation for the companys total cost

(b) Graph the total cost function for Q= -20 to 60, whereQis the number of

houses (quantity) renovated

8. The company charges20000 to renovate (and insulate) the average house

(a) Write down for the companys total revenue (TR)

(b) Graph the total revenue function for Q= -20 to 60, whereQis the number

of houses (quantity) renovated


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9. See questions 7 and 8.

Profit is defined as TRTC.

(a) Write down the equation for the profit function

(b) Plot the profit function. From the graph state the number of houses that

must be renovated if the company is to break-even (i.e. when profit is zero).

10. See questions 7, 8 and 9

(a) Fixed costs for the company in question 7 increase by 60000. In view of

this increase, write down the equation and plot the total cost function. Explain

the relationship between the graphs of this total function to that in question 7.

(b) Write down the equation for the profit function based on (a) above.Plot the profit function.

(i) From the graph estimate the number of houses that must be renovated if the

company is to break-even: i.e. profit is zero.

(ii) Determine algebraically the exact number of houses that must be

renovated if the company is to break-even.

11. See questions 7, 8 and 9

The company proposes to increases the price charged for renovating the

average house to 24000.

(a) Write down the equation and plot the total revenue function on the same

diagram as that in question 8. Explain the relationship between the graphs for

this total revenue function to that in question 8.

(b) Write down the equation for the profit function based on the total revenue

function in (a) above and the cost function on question 7 above.

(i) Plot the profit function.

(ii) From the graph state the number of houses that must be renovated for the

company is to break even: i.e. profit is exactly zero.

(iii) Determine algebraically the exact number of houses that must be

renovated for the company is to break-even.

Compare this answer to that in question 9.


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12. The demand function for laptop bags is given by the equation

P= 3000 - 0.6Q

(a) Plot the demand function.

(b) Calculate the price elasticity of demand for Q = 4500 to Q = 1500 at

intervals of 500.

(c) (i) Hence state the value of Q for which this product has unit elastic

demand.

State the range of values for Qfor which demand is (ii) elastic (iii) inelastic.

13 A family has a leisure budget of 5500 to spend on family week-end breaks

and football supporters trips abroad. Each week-end break (x) costs $200

while a supports trip (y) costs $500.

(a) Write down the equation for the budget constraint. where x = number of

week-end break;y = number of supports trips.

(b) Graph the budget constraint.

From the graph state the number week-end breaks affordable if there are

(i) no supporterstrips (ii) five supporterstrips (iii) no week-end breaks.

Confirm your answers (i) and (ii) algebraically.

14 See question 13.

Show, graphically and by calculation, how the leisure budget constraint

changes in each of the following situations.

(a) The household budget decreases to 4500 while there is no change in the

cost of week-end breaks and supporters trips

(b) The cost of a week-end break increases to 250 while there is no change in

budget or the cost of a supportstrip

(c) The cost of a supports trip decreases to 250 while there is no change in

budget or the cost of family weekend

.

In each case, (a), (b) and (c) above, describe verbally the effect of the change

and compare this to original constraint in question 13.


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To support your descriptions answer the following

From the graph state the number week-end breaks affordable if there are

(i) no supporters trips (ii) five supporters trips

Confirm your answers (i) and (ii) algebraically

(iii) the number of supporters trips affordable when there are no week-end

breaks

then compare the answers with that in question in13 (b)

excel exercises chapter 2

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