Math 192 Lab Paper Exercise # 1

Electronic version (local only) of this document: X:\courses\ma192\192paper1.mws

See also X:\courses\ma192\192lab1.mws for further information.

Written by Richard Kunz Monmouth University and Tom Linton Moravian College, Copyright 1997.

Names:
 
 

Objective:To use technology to assist in solving standard, exponential supply-demand problems using data that approximates "real-life" problems.
 

Problem Description:The University engaged a consultant to perform a price sensitivity analysis on the willingness (ability) of the families of college-bound students in the tri-state area "to purchase" a college education. The survey technique used two reference points: a $375 price/credit hour and a $325 price/credit hour. After analyzing the survey results along with population statistics in the region, the consulting firm estimated that approximately 35,000 credit hours would be
purchased at $375 and 44,300 credit hours would be purchased at $325.
 

With the assistance of the University Accountant and the Physical Plant Director, the University management realized that a $300 credit hour fee did not provide sufficient funds to provide teaching facilities for more than 31,000 credit hours. However at a $400 credit hour rate, the team estimated that incremental improvements could be made to the physical plant so as to accommodate approximately 50,000 credit hours.

The University officials and the marketing consultant agreed that in this first attempt at modeling the credit hour demand and supply relationship, it would be appropriate to assume that the functions were exponential (each has the form p = a*b^q, with p denoting the price per credit hour, q the quantity of credit hours (in thousands of hours), while "a" and "b" are constants which can be calculated from the data above.

You have been called in as the "modeling consultant" on the project and have been asked to make a recommendation to the University management team as to the appropriate tuition level so that there are sufficient funds to meet the expected enrollment demand as dictated by the price.

Assignment Use Maple to assist in making your recommendation. Your recommendation should include text and at least a plot demonstrating the supply and demand curves. You may add whatever additional items you feel appropriate to make your point. The skills practiced in the exponential function activity will be helpful in solving this problem.
 

This assignment will be graded on both form and content.

Return to Tom's math 192 schedule, or math 192 materials page.