Pset1 - axis. (c) What are the slope and intercept of the...

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EC115 – Methods of Economic Analysis Problem Set 1, Week 3 1. Find the solution to the following linear equations: (a) 0 8 4 = - x (b) 0 6 1 3 1 = - - x (c) x x 4 3 = + Check your answers graphically. 2. Consider the following implicit linear functions: (a) 0 20 2 10 = + - y x (b) 0 12 12 6 = - - - x y For each function, (i) Express y as a function of x (ii) Plot the graph in (a) between x = -2 and x = 2 (iii)Plot the graph in (b) between x = 0 and x = 3. 3. Consider the following relation between degrees Celsius and degrees Fahrenheit: 0 degrees Celsius corresponds to 32 degrees Fahrenheit; 100 degrees Celsius corresponds to 212 degrees Fahrenheit. (a) Find a linear equation relating the degrees Fahrenheit to the degrees Celsius. (b) Plot the graph of the equation derived in part (a) with Celsius on the x-
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Unformatted text preview: axis. (c) What are the slope and intercept of the graph? (d) Find, algebraically, how many degrees Celsius corresponds to 50 degrees Fahrenheit. 4. Market research has revealed that the level of yearly sales of ‘Nuke’ trainers is linearly related to the amount spent on advertising. In particular, if Nuke spends £300, 000 on advertising 100,000 pairs of trainers are sold, and if they spend £500,000 on advertising 150,000 pairs are sold. (a) What is the slope and the intercept of the linear equation that relates sales (the dependent variable) to the expenditure in advertisement? (b) Provide an intuitive interpretation of the slope and the intercept....
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This note was uploaded on 12/31/2011 for the course ECON MR 102 taught by Professor Huyduong during the Winter '11 term at RMIT Vietnam.

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