DSC3707-assign01-S1-2023

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Nov 24, 2024

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DSC3707/Ass01/S1/2023 202 3 Assignment 01 Mathematical Modelling DSC3707 Semester 1 Department of Decision Sciences Important Information: This is an online module. All study material will be posted on my Unisa. Please activate your my Life email address and ensure you have regular access to the my Unisa module site DSC3707-23-S1. This document contains assignment 01. Bar code
ASSIGNMENT 01 DSC3707 DUE DATE: 6 March We encourage the use of a computer package to check your answers. Hints for the use of wxMaxima are included, however you may use any other relevant package or procedure. You may even Copy and Paste the solutions you obtain from wxMaxima directly into your assignment. Assignment 01 covers the first 7 chapters in the textbook (study units 1 to 3). This assignment contributes 3 5% towards your semester mark and 7 % towards the final exam mark. Question 1 (a) Suppose that the market for a commodity is governed by supply and demand sets defined as follows. The supply set S is the set of pairs ( q, p ) for which 2 p - 9 q = 30 and the demand set D is the set of pairs ( q, p ) for which 3 p + 7 q = 168 , where the price p is in rands per unit quantity q . Sketch S and D and determine the equilibrium set E = S D , the supply and demand functions q S , q D , and the inverse supply and demand functions p S , p D . (Answer without wxMaxima, but you can check your answer with wMaxima: Choose [Equations], then [Solve algebraic system]. (b) Suppose that the government decides to impose on excise tax of T rands on each unit of the commodity in (a). What price will the consumers end up paying for each unit of the commodity? (c) Find a formula for the amount of money the government obtains from taxing the commodity in the manner described in (b). Determine this quantity explicitly when T = 2 , 00. Question 2 Suppose that the supply and demand sets for a particular market are S = { ( q,p ) | p - 6 q = 357 } , D = { ( q,p ) | p + q 2 + 4 q = 621 } , where q is the quantity of units sold, and p is the price in rands per unit. (a) Sketch S and D and determine the equilibrium set E = S D . (wxMaxima: Choose [ Plot2D] . Choose [Equations] , then [Solve algebraic system] .) (b) Suppose the government imposes an excise tax of R33 on each unit sold. What is the new equilibrium set? How much of the tax is paid by the consumer, and how much by the supplier? 2
DSC3707/Ass/S 1 Question 3 Suppose you invest R60 000 in a special savings account where, for the first eight years, compound interest of 6% is paid annually at the end of each year and, thereafter, interest is continuously compounded at an annual equivalent rate of 4%. How much money do you have in the account after 18 years if you remove no money from it during that period? Question 4 Suppose that the demand function for a good is q D ( p ) = 11000 2 p 2 + 3 , where q is the quantity and p is the price in rands. If the price is decreased from R10 to R9,50, determine, using a calculus method, the approximate increase in the quantity sold. Compare your answer with the answer obtained by using the obvious method of simple substitution. (Answer without using wxMaxima, but you can then check your answer using wxMaxima.) Question 5 A population, currently 10000, is growing at 5% per year. (a) Write a formula for the population, P , as a function of time, t years in the future. (b) Estimate the population 10 years from now. (c) Estimate the doubling time of the population. Question 6 Suppose that the supply and demand sets for a certain good are S = { ( q,p ) | 3 p - q = 30 } , D = { ( q,p ) | 4 p + q = 96 } , and suppliers operate according to the cobweb model. That is, if p t and q t are (respectively) the price and quantity in year t , then p t = p D ( q t ) and q t = q S ( p t 1 ). Suppose also that the initial price is p 0 = 12. (a) Derive a recurrence equation for p t , and solve the recurrence equation. (b) How does p t behave as t tends to infinity? (c) How does q t behave as t tends to infinity? (d) Use your results to determine S D , and then check the correctness of your answers for (b) and (c). 3
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