DSC3707 Sol Ass03 S2-2022_12c21ab2cd96bb6ee0ff55a995082dc3

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University of South Africa *

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3707

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Mathematics

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Nov 24, 2024

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DSC3707: Solutions for Assignment 03, Semester 2, 2022 Question 1 Determine the general solution to the recurrence equation. 1.1 y t - 5 y t - 1 + 6 y t - 2 = 0 1.2 y t + 2 y t - 1 + y t - 2 = 0 1.3 y t - 3 y t - 1 + 9 y t - 2 = 0 Solution: 1.1 y t - 5 y t - 1 + 6 y t - 2 = 0. The auxiliary equation is z 2 - 5 z + 6 = ( z - 2)( z - 3) = 0 with solution z = 2 and z = 3 The homogeneous equation y t - 5 y t - 1 + 6 y t - 2 = 0 therefore has the general solution y 2 = A 2 t + B 3 t . 1.2 y t + 2 y t - 1 + y t - 2 = 0. The auxiliary equation is z 2 + 2 z + 1 = ( z + 1) 2 = 0 with solution z = - 1 . The homogeneous equation y t + 2 y t - 1 + y t - 2 = 0 therefore has the general solution y t = ( Ct + D )( - 1) t . 1.3 y t - 3 y t - 1 + 9 y t - 2 = 0 The auxiliary equation is z 2 - 3 z + 9 = 0 has no real solutions since a 1 = - 3 and a 2 = 9 implies that a 2 1 - 9 a 2 = ( - 3) 2 - 9(9) = - 72 < 0 . We use the formulae on p 290: p = - a 1 2 = 1 , r = a 2 = 9 = 3 . Then cos θ = p r = 1 2 and hence θ = π 3 = 60 degree. The homogeneous equation y t - 3 y t - 1 + 9 y t - 2 = 0 therefore has the general solution y t = A 3 t cos θt + β 3 t sin θt Question 2 Income from an investment can be described by the second-order recurrence y t - 3 y t - 1 - 4 y t - 2 = 6 . 2.1 Determine the general solution to the recurrence equation. 2.2 Determine the specific solution that satisfies the initial conditions y 0 = 1 , y 1 = - 1 . Solution: 2.1 The auxiliary equation is z 2 - 3 z - 4 = ( z +1)( z - 4) = 0 with solution z = - 1 and z = 4. The homogeneous equation y t - 3 y t - 1 - 4 y t - 2 = 0 therefore has the general solution y t = A ( - 1) t + B (4) t . A particular solution of the non-homogeneous equation is the constant solution y * = - 6 1 - 3 - 4 = - 1 Which solves y * - 3 y * = 6. Hence the general solution is y t = - 1 + A ( - 1) t + B (4) t . 2.2 Since y 0 = 1, we have A + B - 1 = 1 while Y 1 = - 1 yields A ( - 1) = B (4) - 1 = - 1 Solving these two equations simultaneously yields B = 2 5 and A = 8 5 .
Question 3 Consider the demand function q D ( p ) = 5 - p ln( p ) , p 0 , 10 where p is the price per unit and q the number of units per hour. Determine the gradient of this demand function. Solution: The gradient is given by d dp (5 - p ln p ) = 0 - d dp ( p ln p ) = - ln p - 1 . Question 4 Consider the demand function q D ( p ) = 8 000 p 2 + 1 4.1 For which values of p will the demand be equal to 1560? 4.2 Determine the R 8 000 p 2 +1 dp. Solution: 4.1 We solve the equation 1 560 = 8 000 p 2 + 1 , or 1 560 p 2 + 1 560 = 8 000 Dividing through by 40 we get 39 p 2 = 161 p = q 161 39 2 , 032 , ignoring then negative value. 4.2 R 8 000 p 2 +1 dp = 8 000 R 1 p 2 +1 dp. Use maxima or note that the R 1 p 2 +1 pd is a standard integra l and R 1 p 2 +1 pd = arctan P , where arctan p is the inverse of tan p , also denoted by tan - 1 p . Question 5 The inverse demand function for a good is p D ( q ) = 192 q 2 + 4 q + 3 , and the equilibrium price is p * = 4. Determine the equilibrium quantity and the consumer surplus. Solution: p D ( q ) = 192 q 2 + 4 q + 3 , Equilibrium quantity 192 q 2 + 4 q + 3 = 4 192 = 4 ( q 2 + 4 q + 3 ) with roots q = 5 and q = - 9. CS = 192 R 5 0 1 q 2 +4 q +3 dq - (4 × 5) = 192 R 5 0 1 ( q +1)( q +3) dq - 20 ............. 1 ( q +3)( q +1)= A q +3 + B q +1 = 192 R 5 0 1 2 ( q +1) - 1 2 ( q +3) dq - 20 = 96 R 5 0 1 ( q +1) - 1 ( q +3) dq - 20 = 96 [ln( q + 1) - ln( q + 3)] 5 0 - 20 = 57 , 8493 . Page 2
Question 6 The elasticity of demand for a good is ε ( p ) = 2 p 2 p 2 + 1 . Given that q = 4 when p = 1, determine the demand function q D ( p ) . Solution: ε ( p ) = 2 p 2 p 2 + 1 . We have - p q dq dp = 2 p 2 p 2 + 1 , where q = q D ( p ) is the demand function. This may be written as a separable differential equation dq dp = - 2 p p 2 + 1 q. Separating and integrating Z 1 q dq = Z - 2 p p 2 + 1 dp. Using substitution r = p 2 + 1 ln q = - ln( p 2 + 1) + c, which is valid since q and P 2 + 1 are positive. Taking the exponential of both sides q = e c e - ln( p 2 +1) = e c p 2 + 1 = K p 2 + 1 , where K = e c is some positive constant. Given that q (1) = 4 , we have 4 = K 2 , so K = 8 Therefore the demand function is q D ( p ) = 8 p 2 + 1 . Question 7 Suppose that consumer demand depends upon the price-trend according to the formula q = 12 - p - 3 dp dt + d 2 p dt 2 . If the supply function q s ( p ) = - 8 + 3 p , write down the condition for equilibrium and determine the equilibrium price p ( t ) when p (0) = 7 and p 0 (0) = 9. Solution: The condition for equilibrium is that supply matches demand. Hence - 8 + 3 p = 12 - p - 3 dp dt + d 2 p dt 2 . So we get - 20 = - 4 p - 3 dp dt + d 2 p dp 2 . A particular solution is p = 5. The auxiliary equation is z 2 - 3 z - 4 = 0 or ( z - 4)( z + 1) = 0 , so z = 4 or z = - 1. Hence the general solution is p ( t ) = 5 + Ae 4 t + Be - t . Page 3
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Using p 0 (0) = 9 and p (0) = 7 gives the equations 7 = 5 + A + B 9 = 4 A - B. Then A = 11 5 ; B = - 1 5 and the equilibrium price is p ( t ) = 5 + 11 5 e 4 t - 1 5 e - t . Page 4