Explanation Given information: The function is N ( r ) = 7 1 + 0.02 r 2 and value of r and Δ r is 6% and 0.5% respectively. Where, . N ( r ) is number of annual housing. r is mortgage rate. Δ r is increase in mortgage rate. Formula used: d [ N ( r ) ] = N ′ ( r ) Δ r (1) Where, d [ N ( r ) ] is difference of the number of housing starts for the next five years. r is mortgage rate. N ′ ( r ) is the differential of the function N ( r ) . Δ r is increase in mortgage rate. Calculation: The given function is, N ( r ) = 7 1 + 0.02 r 2 Differentiate above function and get the value of N ′ ( r ) . N ′ ( r ) = ( 1 + 0.02 r 2 ) × d ( 7 ) d x − 7 × d ( 1 + 0.02 r 2 ) d x ( 1 + 0.02 r 2 ) 2 ( ∵ d ( u / v ) d x = v d u d x − u d v d x v 2 ) = ( 1 + 0.02 r 2 ) × 0 − 7 × ( 0 + 0.02 ( 2 r ) ) ( 1 + 0

Applied Calculus for the Managerial, Life, and Social Sciences

10th Edition

ISBN: 9781305887831

Author: Tan

Publisher: CENGAGE CO

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Chapter 3.7, Problem 37E

To determine

The decrease in the number of annual housing as mortgage rate is increased from 6% to 6.5%.

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Chapter 3.7, Problem 36E

Chapter 3.7, Problem 38E

Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences

Ch. 3.1 - State the following rules of differentiation in...Ch. 3.1 - Prob. 2CQ Ch. 3.1 - Prob. 3CQ Ch. 3.1 - Prob. 4CQ Ch. 3.1 - Prob. 1E Ch. 3.1 - Prob. 2E Ch. 3.1 - Prob. 3E Ch. 3.1 - Prob. 4E Ch. 3.1 - Prob. 5E Ch. 3.1 - Prob. 6E

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Volume of a Cylinder The volume of a...Ch. 3.6 - Prob. 40E Ch. 3.6 - Prob. 41E Ch. 3.6 - Prob. 42E Ch. 3.6 - Prob. 43E Ch. 3.6 - Prob. 44E Ch. 3.6 - Prob. 45E Ch. 3.6 - Prob. 46E Ch. 3.6 - Prob. 47E Ch. 3.6 - PRODUCTION FUNCTION FOR A FURNITURE COMPANY The...Ch. 3.6 - Prob. 49E Ch. 3.6 - Prob. 50E Ch. 3.6 - Prob. 51E Ch. 3.6 - Prob. 52E Ch. 3.6 - Prob. 53E Ch. 3.6 - Prob. 54E Ch. 3.6 - Prob. 55E Ch. 3.6 - Prob. 56E Ch. 3.6 - Prob. 57E Ch. 3.6 - Prob. 58E Ch. 3.6 - Prob. 59E Ch. 3.6 - Prob. 60E Ch. 3.6 - Prob. 61E Ch. 3.6 - Prob. 62E Ch. 3.6 - Prob. 63E Ch. 3.6 - Prob. 64E Ch. 3.6 - Prob. 65E Ch. 3.6 - 66. 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The decrease in the number of annual housing as mortgage rate is increased from 6% to 6.5%.

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