BUSINESS MATHEMATICS

1
 Course Requirements:

Class Participation, Individual Quiz,

And Individual Assignment (Tutorials) 30%

Mid Term Examination) 35%

Final Examination 35%

Total 100%

2
LINEAR EQUATION

Lecture 1

3
Learning objectives
• To introduce algebra
• To understand further algebra
• To discuss graphs of linear equation
• To understand algebraic Solutions of Simultaneous Linear
Equations
• To understand demand and supply analysis

4
Introduction to Algebra

Learning Objective 1 5
Use a raised dot or parentheses to
express multiplication.
• Numbers being multiplied are called factors and the
answer is called the product.
• Example :
Rewrite the multiplication in three different ways. Identify
the factor and the product. 10 × 7

The factors are 10 and 7 and the product is 70.

Negative numbers

• In mathematics numbers are classified into one of tree

types : positive, negative or zero

• The rules of the multiplication of negative numbers are :

Negative x negative = positive
Negative x positive = negative

• It doesn’t matter in which order two numbers are

multiplied, so :
Positive x negative = negative

7
Multiply integers.

Multiply Two Integers

If two factors have different signs, the product is

negative.
For example,
2  6  12 and 4  ( 5)  20

If two factors have the same sign, the product is

positive. For example,
7  3  21 and  3  ( 10)  30
Multiply integers.

Example
Multiply the integers.

2 • 8
2  8  16
The factors have different signs, so the
  product is negative.

Positive
Negative
Multiply integers.

Example
Multiply the integers.
10( 6)

The factors have the same sign, so the

10( 6)  60 product is positive.
Quick Check1

Evaluate :

a. (-2) x (-4) x (-1) x 2 x (-1) x (-3)

b. 5 x (-4) x (-1) x (-3)

(-6) x 2

11
Expressions
• In algebra letters are used to represent numbers.

• In mathematics the most common letter uses used are x

and y

• In application , it can use Q for quantity and I for

investment

• In algebra when we multiply two numbers represented

by letters we usually suppress the multiplication sign
between them.

12
Expressions
• A combination of operations on letters (variables) and
numbers is called an algebraic expression.

Algebraic Expressions
5+x 6y 3y–4+x

13
Example : Expressions

14
Expressions
• In order to evaluate expressions it is necessary to be
given numerical value of each letter. Once this has been
done you can work out the final value by performing the
operations in the following order :
Brackets first (B)
Indices second (I)
Division and Multiplication third (DM)
Addition and Subtraction fourth (AS)

15
Evaluating Algebraic Expressions

Evaluate x + y for x = 5 and y = 2.

Replace x with 5 and y with 2 in x + y.

x + y = ( 5 ) + (2 )
=7
Equation
Statements like 5 + 2 = 7 are called
equations.
An equation is of the form
expression = expression
An equation can be labeled as

Equal sign

x + 5 = 9

left side right side

Solving/Solution
When an equation contains a variable, deciding
which values of the variable make an equation a
true statement is called solving an equation for the
variable.
A solution of an equation is a value for the variable
that makes an equation a true statement.
Solving/Solution ...
Determine whether a number is a solution:
Is -2 a solution of the equation 2y + 1 = -3?
Replace y with -2 in the equation.

2y + 1 = -3
2(-2) + 1 = -3

- 4 + 1 = -3 ?

-3 = -3 ? True

Since -3 = -3 is a true statement, -2 is a solution of the equation.

 Solving/Solution ...

Determine whether a number is a solution:

Is 6 a solution of the equation 5x - 1 = 30?

Replace x with 6 in the equation.
5x - 1 = 30
?
5(6) - 1 = 30
?
30 - 1 = 30

29 = 30 False
Since 29 = 30 is a false statement, 6 is not a solution of the equation.
Solving/Solution...

To solve an equation, we will use properties of equality

to write simpler equations, all equivalent to the original
equation, until the final equation has the form
x = number or number = x

Equivalent equations have the same solution.

The word “number” above represents the solution of the

original equation.
Quick Check 2

Find the value of 2x – 3y when x = 9

and y = 4

22
Brackets

It is useful to take an expression containing brackets and

rewrite it as an equivalent expression without brackets and
vice versa.

The process of removing brackets is called “ expanding

brackets” or “ multiplying out brackets”

This is based on distributive law, which states that for any

three numbers a, b, and c
a(b+c) = ab + ac

23
Brackets

This distributive law can be used when they are any

number of terms inside the brackets.
• a(b+c+d) = ab + ac + ad
• (b+c) a = ba + ca

24
Example
Rewrite the product, using the distributive property.
Show that the result is unchanged.

2( 5  1)

2( 5  1)  ( 2)  ( 5)  ( 2)  (1)

2( 4)  10  ( 2)
88
Quick Check 3

Multiply out the brackets in

X (X-2)

26
 Further Algebra

Learning Objective 2 27
Fractions

• Fraction: part of a whole - example

• Numerator: number on top
• Denominator: number on bottom
• Proper Fraction: numerator is less than the
denominator
• Improper Fraction: numerator is equal to or greater
than the denominator

28
Fractions

29
Quick Check 4

Reduce the following fractions to the lowest terms

14
21

30
Linear Equations, Standard Form

In general, a first-degree, or linear, equation in one variable

is any equation that can be written in the form

ax  b  0
where a is not equal to zero. This is called the standard form
of the linear equation.
For example, the equation
x
3  2( x  3)   5
3
is a linear equation because it can be converted to standard
form by clearing of fractions and simplifying.
Equivalent Equations
Two equations are equivalent if one can be transformed into
the other by performing a series of operations which are one
of two types:
1. The same quantity is added to or subtracted
from each side of a given equation.
2. Each side of a given equation is multiplied by or
divided by the same nonzero quantity.
To solve a linear equation, we perform these operations on the
equation to obtain simpler equivalent forms, until we obtain an
equation with an obvious solution.
Example : Linear Equation

x2 x
Example: Solve  5
2 3
Example: Linear Equation

x2 x
Example: Solve  5
2 3
Solution: Since the LCD of 2 and 3
 x2 x
is 6, we multiply both sides of the 6    65
equation by 6 to clear of fractions.  2 3
Cancel the 6 with the 2 to obtain a 3( x  2)  2 x  30
factor of 3, and cancel the 6 with 3x  6  2 x  30
the 3 to obtain a factor of 2.
x  6  30
Distribute the 3.
x  24
Combine like terms.
Example : Solving a Formula for a Particular
Variable

Example: Solve M =Nt +Nr for N.

Example : Solving a Formula for a Particular
Variable

Example: Solve M=Nt+Nr for N.

Factor out N: M  N (t  r )
Divide both sides M
by (t + r): N
tr
Linear Inequalities

If the equality symbol = in a linear equation is replaced by

an inequality symbol (<, >, ≤, or ≥), the resulting expression
is called a first-degree, or linear, inequality. For example
x
5  1  3x  2 
2
is a linear inequality.
Solving Linear Inequalities

We can perform the same operations on inequalities that we

perform on equations, except that the sense of the inequality
reverses if we multiply or divide both sides by a negative
number. For example, if we start with the true statement –2 > –9
and multiply both sides by 3, we obtain
–6 > –27.
The sense of the inequality remains the same.
If we multiply both sides by -3 instead, we must write
6 < 27
to have a true statement. The sense of the inequality reverses.
Example for Solving a
Linear Inequality
Solve the inequality 3(x – 1) < 5(x + 2) – 5
Example : Linear Inequality

Solve the inequality 3(x – 1) < 5(x + 2) – 5

Solution:
3(x –1) < 5(x + 2) – 5
3x – 3 < 5x + 10 – 5 Distribute the 3 and the 5
3x – 3 < 5x + 5 Combine like terms.
–2x < 8 Subtract 5x from both sides,
and add 3 to both sides
x > -4 Notice that the sense of the inequality
reverses when we divide both sides by -2.
Interval and Inequality Notation

If a < b, the double inequality a < x < b means that a < x and
x < b. That is, x is between a and b.
Interval notation is also used to describe sets defined by single
or double inequalities, as shown in the following table.
Interval Inequality Interval Inequality
[a,b] a≤x≤b (–∞,a] x≤a
[a,b) a≤x<b (–∞,a) x<a
(a,b] a<x≤b [b,∞) x≥b
(a,b) a<x<b (b,∞) x>b
Graphs of Linear Equations

Learning Objective 3 42
Graph

43
Graph

• Horizontal line is referred to as the x axis and vertical

line is referred to as the y axis.
• The point where these lines intersect is known as the
origin and is denoted by the letter O
• These lines enable us to identify uniquely any point, P in
terms of its coordinates (x,y).
• The first number ,x, denotes, the horizontal distance
along the x axis and the second number, y, denotes the
vertical distance along the y axis. The arrows on the
axes indicate the positive direction in each case.

44
Quick Check 5

Find the intersection of the two lines

4x + 3 y = 11
2x + y = 5

45
Algebraic Solutions of Simultaneous
Linear Equations

Learning Objective 4 46
Elimination Method

Elimination method is each stage of the process eliminates

one (or more) of the unknowns.
It produces the exact solution and can be applied to the
systems of equations larger than just two equations in two
unknowns.

Example:

4x + 3y = 11
2x + y = 5

47
Elimination Method (continue)

2nd equation becomes : 4x + 2 y = 10

Then subtract:
4x + 3 y = 11
4x + 2 y = 10
y=1

This number can be substituted:

4x + 3(1) = 11
x=2

48
Quick Check 6

Solve the system of equations:

X - 2y = 1
2x - 4y = -3

49
Supply and Demand Analysis

Learning Objective 5 50
Supply and Demand

• In a free competitive market, the price of a product is

determined by the relationship between supply and
demand. The price tends to stabilize at the point of
intersection of the demand and supply equations.
• This point of intersection is called the equilibrium point.
• The corresponding price is called the equilibrium price.
• The common value of supply and demand is called the
equilibrium quantity.
Supply and Demand Example

Use the barley market data in the following table to find:

(a) A linear supply equation of the form p = mx + b
(b) A linear demand equation of the form p = mx + b

Year Supply Demand Price

Mil bu Mil bu $/bu
2002 340 270 2.22

2003 370 250 2.72

Supply and Demand Example (continued)

(a) To find a supply equation in the form p = mx + b, we must

first find two points of the form (x, p) on the supply line.
From the table, (340, 2.22) and (370, 2.72) are two such
points. The slope of the line is
2.72  2.22 0.5
m   0.0167
370 340 30
Now use the point-slope form to find the equation of the line:
p – p1 = m(x – x1)
p – 2.22 = 0.0167(x – 340)
p – 2.22 = 0.0167x – 5.678
p = 0.0167x – 3.458 Price-supply equation.
Supply and Demand Example (continued)

(b) From the table, (270, 2.22) and (250, 2.72) are two points
on the demand equation. The slope is
2.72  2.22 .5
m   0.025
250  270 20
p – p1 = m(x – x1)
p – 2.22 = –0.025(x – 270)
p – 2.22 = –0.025x + 6.75
p = –0.025x + 8.97 Price-demand equation
Quick Check 7

Sketch a graph of demand functions

P = -2Q + 50

Hence, or otherwise, determine the value of

a. P when Q = 9
b. Q when P = 10

55
End of Lecture 1

56