C=0.25(L−1200)The cost, C, in dollars, to the holder of a liability insurance account given a total liability of L dollars is given by the equation as long as C is positive. By how many dollars does the liability increase when the cost to the holder increases by 1 dollar?
Q. C=0.25(L−1200)The cost, C, in dollars, to the holder of a liability insurance account given a total liability of L dollars is given by the equation as long as C is positive. By how many dollars does the liability increase when the cost to the holder increases by 1 dollar?
Isolate L in equation: We are given the equation C=0.25(L−1200), where C is the cost to the holder and L is the total liability in dollars. We need to find out how much L increases when C increases by 1 dollar.First, let's isolate L in the equation to see how it changes with respect to C.
Add 1200 to both sides: We add 1200 to both sides of the equation to get C+1200=0.25L.
Divide by 0.25 to solve: Next, we divide both sides of the equation by 0.25 to solve for L. This gives us L=0.25C+1200.
Find change in L: Now, we want to find out the change in L when C increases by 1 dollar. Let's call the increase in L as ΔL and the increase in C as ΔC. Since ΔC is 1 dollar, we can write the new cost as L0.
Substitute C+ΔC: Substituting C+ΔC into the equation for L, we get L+ΔL=0.25C+ΔC+1200.
Solve for ΔL: Since ΔC is 1, we can substitute it into the equation to get L+ΔL=(C+1+1200)/0.25.
Substitute L into equation: We can now subtract the original L from both sides to find ΔL. This gives us ΔL=0.25(C+1+1200)−L.
Simplify the equation: We know that L=0.25(C+1200) from our earlier step, so we can substitute this into our equation for ΔL. This gives us ΔL=[0.25(C+1+1200)]−[0.25(C+1200)].
Calculate ΔL: Simplifying the right side of the equation, we see that the terms (C+1200)/0.25 cancel out, leaving us with ΔL=(1/0.25).
Final result: Calculating 1/0.25 gives us ΔL=4. This means that the liability increases by 4 dollars when the cost to the holder increases by 1 dollar.
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