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In this section you will:
  • Build linear models from verbal descriptions.
  • Model a set of data with a linear function.
A skyline view of Seattle with a focus on the Space Needle.
(credit: EEK Photography/Flickr)

Emily is a college student who plans to spend a summer in Seattle. She has saved $3,500 for her trip and anticipates spending $400 each week on rent, food, and activities. How can we write a linear model to represent her situation? What would be the x -intercept, and what can she learn from it? To answer these and related questions, we can create a model using a linear function. Models such as this one can be extremely useful for analyzing relationships and making predictions based on those relationships. In this section, we will explore examples of linear function models.

Building linear models from verbal descriptions

When building linear models to solve problems involving quantities with a constant rate of change, we typically follow the same problem strategies that we would use for any type of function. Let’s briefly review them:

  1. Identify changing quantities, and then define descriptive variables to represent those quantities. When appropriate, sketch a picture or define a coordinate system.
  2. Carefully read the problem to identify important information. Look for information that provides values for the variables or values for parts of the functional model, such as slope and initial value.
  3. Carefully read the problem to determine what we are trying to find, identify, solve, or interpret.
  4. Identify a solution pathway from the provided information to what we are trying to find. Often this will involve checking and tracking units, building a table, or even finding a formula for the function being used to model the problem.
  5. When needed, write a formula for the function.
  6. Solve or evaluate the function using the formula.
  7. Reflect on whether your answer is reasonable for the given situation and whether it makes sense mathematically.
  8. Clearly convey your result using appropriate units, and answer in full sentences when necessary.

Now let’s take a look at the student in Seattle. In her situation, there are two changing quantities: time and money. The amount of money she has remaining while on vacation depends on how long she stays. We can use this information to define our variables, including units.

Output: M , money remaining, in dollars Input: t , time, in weeks

So, the amount of money remaining depends on the number of weeks: M ( t ) .

We can also identify the initial value and the rate of change .              Initial Value: She saved $3,500, so $3,500 is the initial value for M .              Rate of Change: She anticipates spending $400 each week, so $400 per week is the rate of change, or slope .

Notice that the unit of dollars per week matches the unit of our output variable divided by our input variable. Also, because the slope is negative, the linear function is decreasing. This should make sense because she is spending money each week.

The rate of change    is constant, so we can start with the linear model M ( t ) = m t + b . Then we can substitute the intercept and slope provided.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Algebra and trigonometry. OpenStax CNX. Nov 14, 2016 Download for free at https://legacy.cnx.org/content/col11758/1.6
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