Suppose You Belong To A Tennis Club That Has A Monthly Fee

Suppose You Belong To A Tennis Club That Has A Monthly Fee Of 100

Suppose you belong to a tennis club that has a monthly fee of $100 and a charge of $5 per hour to play. Prepare a table and draw a curve to show the relationship between the hours of tennis (on the horizontal axis) and the monthly club bill (on the vertical axis). For the table and graph use 5, 10, 15, and 20 hours of tennis. Find the slope of the curve per ______.

The slope of the curve is ______ per ______. Suppose you start with 10 hours of tennis and then decide to increase your tennis time by 3 hours. On your curve show the initial point and the new point. By how much will your monthly bill increase?____ Suppose you start with 10 hours and then decide to spend an additional $30 on tennis. On your curve, show the initial point and the new point. How many additional hours can you get?_______

Paper For Above instruction

The scenario involves analyzing how the monthly cost at a tennis club varies with the number of hours played, considering both fixed and variable costs. The fixed monthly fee is $100, and each hour of play costs an additional $5. This creates a linear relationship between hours played and total monthly bill, which can be effectively represented in a table and graph to visualize how costs increase with additional hours.

Constructing the table with hours of 5, 10, 15, and 20 provides concrete data points for the relationship. The total cost, \( C \), as a function of hours, \( h \), can be expressed as:

C = 100 + 5h

Calculating the table:

  • At 5 hours: \( C = 100 + 5 \times 5 = \$125 \)
  • At 10 hours: \( C = 100 + 5 \times 10 = \$150 \)
  • At 15 hours: \( C = 100 + 5 \times 15 = \$175 \)
  • At 20 hours: \( C = 100 + 5 \times 20 = \$200 \)

A graph plotting hours (x-axis) versus total cost (y-axis) would be a straight line, with a slope corresponding to the variable cost per hour. The slope can be directly derived from the coefficient of \( h \), which is $5 per hour. In this linear relationship, the slope is consistent, indicating a constant rate of increase.

The slope of the curve is $5 per hour, reflecting the additional cost incurred for each extra hour of tennis played. This linearity informs us that each additional hour of tennis increases the monthly bill by $5, independent of the current number of hours played.

Starting from 10 hours of tennis costing \$150, increasing the tennis time by 3 hours results in an additional cost of 3 hours \(\times \$5/hour = \$15\). On the graph, the initial point is at (10 hours, \$150), and the new point after 3 extra hours is at (13 hours, \$165). The increase in the bill is clearly depicted as the vertical distance between these points, confirming the slope of \$5 per hour.

Now, consider increasing the monthly bill by an additional \$30, starting from the initial \$150 at 10 hours. Using the relation:

\( C = 100 + 5h \), solving for \( h \) when \( C = 180 \):

\( 180 = 100 + 5h \) \Rightarrow 5h = 80 \Rightarrow h = 16 \)

Thus, by spending an extra \$30 (from \$150 to \$180), you can afford to play an additional 6 hours beyond the initial 10 hours.

The initial point is at (10, \$150), and the new point is at (16, \$180). The extra hours obtained is 6 hours, which aligns with the increase in cost of \$30 divided by the slope ($5 per hour).

Analyzing Cost and Production in Different Contexts

Next, consider the relationship between the number of Frisbees produced and the cost of production. The vertical intercept represents the fixed cost, which could include equipment or setup costs independent of quantity produced. The slope of the cost curve indicates the variable cost per Frisbee.

Assuming the graph shows that the fixed cost (vertical intercept) is \$20, and the slope of the cost curve is \$2 per Frisbee, the total cost for producing \(q\) Frisbees can be expressed as:

Cost = 20 + 2q

Point b on the graph indicates that the cost of producing about 10 Frisbees is \$40 (since at \( q = 10 \), Cost \( = 20 + 2 \times 10 = \$40 \)). For 15 Frisbees, the total cost is \$50 (since \( 20 + 2 \times 15 = \$50 \)).

Switching to the next scenario involving intent to purchase CDs and movies with a $120 budget. Price per CD is $12 and per movie is $6. The budget constraint can be visualized via a intercept table and a budget line graph, where the horizontal axis is CDs and the vertical axis is movies.

Constructing the table for different combinations:

  • If buying 0 CDs, the maximum number of movies is \( 120 / 6 = 20 \).
  • If buying 10 CDs, remaining money for movies is \( 120 - 10 \times 12 = 120 - 120 = 0 \), so no movies are affordable in this case, but considering proportional combinations, the trade-off involves different combinations within the budget.

The slope of the budget line (or opportunity cost) is the ratio of the prices: \( \frac{Price_{CD}}{Price_{Movie}} = \frac{\$12}{\$6} = 2 \). This indicates each additional CD costs the equivalent of 2 movies in terms of opportunity cost, and vice versa.

In the context of delivery costs, the fixed cost is the truck rental (\$50), and the variable cost is the hourly wage (\$8 per delivery). The total cost function:

Cost = 50 + 8 \times number of deliveries

For the range of 0 to 20 deliveries, the slope is \$8 per delivery, reflecting the incremental cost for each additional delivery.

Variables held fixed during the analysis include the fixed truck rental cost (\$50) and hourly wage (\$8). Variations in these variables cause shifts or movements along or of the entire curve, respectively.

Analysis of Percentage Changes and Price Fluctuations

Calculating percentage changes using the midpoint (orABC) method involves:

Percentage change = \(\frac{New value - Initial value}{Average of initial and new value} \times 100\)

For example, initial value of 10 and new value of 11:

Percentage change = \(\frac{11 - 10}{(10 + 11)/2} \times 100 = \frac{1}{10.5} \times 100 \approx 9.52\%\)

Similarly, for 100 to 98:

Percentage change = \(\frac{98 - 100}{(100 + 98)/2} \times 100 = \frac{-2}{99} \times 100 \approx -2.02\%\)

And for 50 to 53:

Percentage change = \(\frac{53 - 50}{(50 + 53)/2} \times 100 = \frac{3}{51.5} \times 100 \approx 5.83\%\)

Calculating new values when given percentage changes follows the reverse process. For example, a 12% increase on 100 yields:

New value = \( 100 \times (1 + \frac{12}{100}) = 100 \times 1.12 = 112 \)

A decrease of 8 on 50 when the percentage change is 8%:

New value = \( 50 \times (1 - \frac{8}{100}) = 50 \times 0.92 = 46 \)

And for 15 with a 20% increase:

New value = \( 15 \times 1.20 = 18 \)

Finally, for the price change of an MP3 player from \$60 to \$40, the midpoint percentage change is calculated as:

\( \frac{40 - 60}{(60 + 40)/2} \times 100 = \frac{-20}{50} \times 100 = -40\% \)

Using the initial-value approach:

Percentage change = \(\frac{New Price - Initial Price}{Initial Price} \times 100\)

\(\frac{40 - 60}{60} \times 100 = -33.33\%\)

This highlights the difference between the midpoint and initial-value approaches, with the midpoint providing a symmetric measure of percentage change.

References

  • Frank, R., & Bernanke, B. (2017). Principles of Economics (6th ed.). McGraw-Hill Education.
  • Mankiw, N. G. (2020). Principles of Economics (8th ed.). Cengage Learning.
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