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Functions and Business Applications

Sep 9, 2025

Overview

This lecture introduces the concepts of functions, equations in two variables, function notation, domains and ranges, and their applications in business contexts like profit-loss and price-demand analysis.

Equations in Two Variables and Graphing

  • Linear equations (Ax + By = C) graph as lines; each solution is a point on the line.
  • More complex equations like y = 9x² require point-by-point plotting using tables of values.

Functions and Correspondences

  • A function is a correspondence where each domain element matches exactly one range element.
  • The domain is the set of all possible inputs; the range is the set of all possible outputs.
  • Not all equations give functions—if any input gives more than one output, it's not a function.

Determining Functions and the Vertical Line Test

  • The vertical line test: a graph represents a function if no vertical line crosses it more than once.
  • If an equation in two variables gives one output for each input, it specifies a function.

Domains and Ranges

  • The domain of a function is all real input values producing real outputs.
  • To find a function's domain, exclude values that make the output undefined (e.g., division by zero, negative roots).

Function Notation and Evaluation

  • f(x) replaces y to show the output for a specific input, x.
  • To evaluate, substitute the value into the function: e.g., f(2), g(1), h(8).
  • Example: For f(x) = x² – 2x + 7, find f(a), f(a + h), and the difference quotient.

The Difference Quotient

  • The difference quotient is [f(x + h) – f(x)] / h and is foundational in calculus for finding rates of change.

Business Applications: Profit-Loss and Price-Demand

  • Cost (C), revenue (R), and profit (P) functions model business scenarios.
  • C(x) = fixed cost + variable cost (often C(x) = a + bx).
  • Revenue: R(x) = x * p(x), where p(x) is the price-demand function (e.g., p(x) = m – n x).
  • Profit: P(x) = R(x) – C(x).
  • Break-even occurs when R = C; profit is positive when R > C.

Key Terms & Definitions

  • Function — A relation where each input (domain) has exactly one output (range).
  • Domain — Set of all possible input values for a function.
  • Range — Set of all possible outputs for a function.
  • Vertical Line Test — A method to determine if a graph represents a function.
  • Difference Quotient — [f(x + h) – f(x)] / h; measures average rate of change.
  • Price-Demand Function — Shows relationship between price and quantity sold.
  • Profit Function — P(x) = revenue – cost.

Action Items / Next Steps

  • Complete matched problems from lecture, especially on identifying functions and finding domains.
  • Practice graphing price-demand, revenue, and profit functions.
  • Review function evaluation and difference quotient calculations for provided examples.