Some students have complained about noise during the lectures.

So if you are more interested in chatting with your friends than actually listening to the lectures.

Then please leave now !

Department of Mathematics London School of Economics and Political Science

The Market at Equilibrium

The inverse supply and demand functions meet

MA 100 Mathematical Methods

Calculus Lecture 16

at a point (x 0 , p 0 ) . The value of p 0 is the market price. To nd this point, we must solve : D (x ) = S (x ) .

Consumers and Producers Surplus Integration by Partial Fractions, by Change of Variable, and by Parts

Department of Mathematics London School of Economics and Political Science

MA 100, Mathematical Methods Calculus Lecture 16 page 3 / 42

First an application : Economic model of a market

The Market at Equilibrium

p

Consider a market with one product. Suppose the inverse demand function is p = D (x ) = 60 3 x ( 0 x 20 ); p0

S (x )

i.e., in order to sell x units of the product, the price per unit must be p = D (x ) . And the inverse supply function is p = S (x ) = x 2 + 20,

D (x )

x0

i.e., for it to be worthwhile to produce x units, the price per unit must be p = S (x ) .
MA 100, Mathematical Methods Calculus Lecture 16 page 2 / 42 MA 100, Mathematical Methods Calculus Lecture 16 page 4 / 42

The Market at Equilibrium

Consumers Surplus

At the market price p0 , the total the consumers pay and the total the producers receive is : R = x 0 p0 . This is the area of the shaded region below.

The value of the consumers surplus, the area of that region, is given by the denite integral
x0 x =0 x0

D (x ) dx x 0 p 0 =

x =0

(D (x ) p0 ) dx .

In this case, the integral is equal to

5

(60 3 x 45) dx =

p0

x =0

x0
MA 100, Mathematical Methods Calculus Lecture 16 page 5 / 42 MA 100, Mathematical Methods Calculus Lecture 16 page 7 / 42

Consumers Surplus

Producers Surplus

At the market price p0 , consumers who buy the product would have been willing to pay at least p 0 , and many of them would have been willing to pay more. This extra in the market forms the Consumers Surplus. It is the area of the shaded region below. S (x )

Similarly, the Producers Surplus is the area of the region S (x ) p0 D (x ) x0

p0 D (x )

This is obtained by determining

x0 x0

x 0 p0 x0
MA 100, Mathematical Methods Calculus Lecture 16 page 6 / 42

S (x ) dx =
x =0 x =0

(p 0 S (x )) dx .
MA 100, Mathematical Methods Calculus Lecture 16 page 8 / 42

Techniques of Integration

Some further integrals

In these examples, integrating the functions is quite straightforward. You are expected to be familiar with standard integrals, and standard methods of integration. If you could use a refresher, see ( for instance ) : the Calculus Refresher on the MA100 Moodle page, or the relevant sections of the Calculus textbook. The rest of the lecture is devoted to some more advanced techniques of integration.
MA 100, Mathematical Methods Calculus Lecture 16 page 9 / 42

Some other integrals we know by now : dx 1 x2

= arcsin(x ) + c ;

dx = arctan(x ) + c . 1 + x2

Why ? Because d arcsin(x ) = dx 1 1 x2 , etc.

MA 100, Mathematical Methods Calculus Lecture 16 page 11 / 42

Integration a quick reminder

Partial fractions Example

Some standard integrals : f (x ) xn

( n = 1 )

Find : f (x ) dx 1 x n+1 + c n+1 ln |x | + c ex + c

cos(x ) + c

x2

x +2 dx . + 5x + 4

We have x +2 1/3 2/3 x +2 , = = + + 5x + 4 (x + 1) (x + 4) x +1 x +4

x2

1/x ex sin(x ) cos(x )

so : x +2 1 dx = + 5x + 4 3
=

x2

dx 2 + x +1 3

dx x +4

sin(x ) + c
MA 100, Mathematical Methods Calculus Lecture 16 page 10 / 42

1 2 ln|x + 1| + ln|x + 4| + c . 3 3
MA 100, Mathematical Methods Calculus Lecture 16 page 12 / 42

Integration Rational Functions

Integration rational functions

We rst look at the integration of rational functions : functions of the form P (x ) , Q (x )

So we can reduce integrating any rational function to the case P (x ) dx = Q (x )

=

D (x ) +

1 R (x ) k a x + 1 a

dx

with P (x ) and Q (x ) polynomials. D (x ) dx + Example x 5 + 25 dx . 2 x 4 + 4 x 3 + 10 x 2 R (x ) dx ; xk +

where R (x ) has degree smaller than k .

MA 100, Mathematical Methods Calculus Lecture 16 page 13 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 15 / 42

Integration Rational Functions

Partial fractions the easy case

If the degree of P is greater than or equal to that of Q , then we can always write : R (x ) P (x ) = D (x ) + , Q (x ) Q (x )

Suppose we have a function of the form R (x ) +

=

xk

R (x ) , (x a1 ) (x a2 ) (x ak )

with D , R , Q all polynomials, and where the degree of R is smaller than that of Q . Next : if Q (x ) = a x k + b x k 1 + ( with a = 0 ), b so Q (x ) = a x k + x k 1 + , a then we can write : 1 R (x ) = Q (x ) a xk + R (x )
b a

where R (x ) is a polynomial of degree smaller than k , and a1 , a2 , . . . , ak are different real numbers. Such a function can always be written in the form A1 A2 Ak R (x ) , = + + + xk + x a1 x a2 x ak for some constants A1 , A2 , . . . , Ak .
MA 100, Mathematical Methods Calculus Lecture 16 page 16 / 42

x k 1 +

MA 100, Mathematical Methods Calculus Lecture 16 page 14 / 42

Partial fractions nding the constants

Partial fractions the cover-up rule

But how can we nd the A1 , A2 , . . . , Ak ? Method 1 : just work it out ! Example A B C x2 + 3 = + + (x 1) (x + 1) (x 2) x 1 x +1 x 2

=

Method 2 : the cover-up rule The start is the same : A B C x2 + 3 = + + (x 1) (x + 1) (x 2) x 1 x +1 x 2

=

A (x + 1) (x 2) + B (x 1) (x 2) + C (x 1) (x + 1) . (x 1) (x + 1) (x 2) So we need to make sure : x2 + 3 = A (x + 1) (x 2)

+ B (x 1) (x 2) + C (x 1) (x + 1) .

A (x + 1) (x 2) + B (x 1) (x 2) + C (x 1) (x + 1) . (x 1) (x + 1) (x 2)

MA 100, Mathematical Methods Calculus Lecture 16 page 17 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 19 / 42

Partial fractions nding the constants

Partial fractions the cover-up rule

So we must have : x2 + 3 = 1 x2 + 0 x + 3
= (A + B + C ) x 2 + (A 3 B ) x + (2 A + 2 B C );

To nd A : The constant A came from the fraction Set x = 1 everywhere in the equation : 12 + 3 = A (1 + 1) (1 2) + B 0 + C 0. Because of the zeros in the terms without an A , we can describe this as : cover up the terms with the factor x 1 on the right. This gives an equation for A only : A . x 1

which means we have to solve : A+ B + C = 1,

= 0,

A 3 B

2 A + 2 B C = 3.

The solution is :

A=

B=

C=

Which easily gives :

MA 100, Mathematical Methods Calculus Lecture 16 page 20 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 18 / 42

Partial fractions the cover-up rule

Partial fractions with repeated factors

We can do the same for B ( coming from take x = 1 : So :

B ): x +1

When there are repeated factors, more work is needed. Example : x 1 dx . x (x + 1)2 A B C x 1 = + + 2 x (x + 1) x x +1 (x + 1)2
=

(1)2 + 3 = B (1 1) (1 2) .

Write : And then for C ( coming from take x = 2 : This gives :

MA 100, Mathematical Methods Calculus Lecture 16 page 21 / 42

C ): x 2

22 + 3 = C (2 1) (2 + 1) .

A (x + 1)2 + B x (x + 1) + C x . x (x + 1)2

So we need to make sure that A , B , C satisfy : x 1 = A (x + 1)2 + B x (x + 1) + C x .

MA 100, Mathematical Methods Calculus Lecture 16 page 23 / 42

Partial fractions the result

Partial fractions with repeated factors

So now we can integrate : x2 + 3 dx (x 1) (x + 1) (x 2)

= 2 +

Apply cover-up rule, taking x = 0 : which gives : Now take x = 1 :

0 1 = A (0 + 1)2 ,

(1) 1 = C (1) ,

x 1

2/3 7/3 + dx x +1 x 2 2 7 ln|x + 1| + ln|x 2| + c . 3 3

hence : But we cant get B that way. Use the rst method : x 1 = (A + B ) x 2 + (2 A + B + C ) x + A . So A + B = 0, hence :

= 2 ln|x 1| +

MA 100, Mathematical Methods Calculus Lecture 16 page 22 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 24 / 42

Partial fractions with repeated factors

Integration the easy case in general

Alternative approach to nding B : So far we have :

1 B 2 x 1 . = + + 2 x (x + 1) x x +1 (x + 1)2

If we can completely factorise Q (x ) = x k + : Q (x ) = (x a1 ) (x a2 ) (x ak ) , with all a1 , a2 , . . . , ak different, then we can write R (x ) A1 A2 Ak . = + + + Q (x ) x a1 x a2 x ak And those fractions are easy to integrate : Ai dx = Ai ln |x ai | + c . x ai
MA 100, Mathematical Methods Calculus Lecture 16 page 25 / 42 MA 100, Mathematical Methods Calculus Lecture 16 page 27 / 42

Now evaluate both sides at some convenient value for x , say at x = 1.

Partial fractions with repeated factors

Partial fractions with repeated factors in general

So now we can integrate : x 1 dx = x (x + 1)2 1 1 2 + dx + x x +1 (x + 1)2

If there are repeated factors, e.g.: Q (x ) = (x a1 )3 (x a2 ) (x a3 )2 , then we can write R (x ) = Q (x )

+ +

2 = ln|x | + ln|x + 1| +c. x +1

B A C + + x a1 (x a1 )2 (x a1 )3 D x a2 E F . + x a3 (x a3 )2
MA 100, Mathematical Methods Calculus Lecture 16 page 28 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 26 / 42

Partial fractions with repeated factors in general

Partial fractions with irreducible squares

These functions can be integrated : A dx x a1

= A ln |x a1 | + c ,

Now combine this with two useful observations : d x +p arctan dx q

=

1 q

B B + c, d x = (x a1 )2 x a1 1 C C d x = + c , 3 2 (x a1 ) 2 (x a1 ) and

1 x +p 1+ q

x2

q ; + 2 p x + (p 2 + q 2 )

etc.

d 2x +a . ln(x 2 + a x + b) = 2 dx x + ax +b

MA 100, Mathematical Methods Calculus Lecture 16 page 29 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 31 / 42

Partial fractions with irreducible squares

Partial fractions with irreducible squares

We cant factorise, say, x 2 + 2 x + 5 as (x a1 ) (x a2 ) ( it is irreducible ).

Example To nd 2x 1 dx , we should use +2x + 5

x2

So what if those appear in the rational function ? We can always complete the square : x2 + a x + b = where b
1 4

2x + 2 d ln(x 2 + 2 x + 5) = 2 , dx x + 2x + 5
1 4

x+

1 2

+ b

a2 ,

and x +1 d arctan dx 2
=

a 2 > 0.

( Otherwise we could factorise ! )

2
(x +

1)2

+2

x2

2 . + 2x + 5

MA 100, Mathematical Methods Calculus Lecture 16 page 30 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 32 / 42

Partial fractions with irreducible squares

Partial fractions all together now

So we nd : 2x 1 dx 2 x + 2x + 5
= 3 2x + 2 d x + x2 + 2 x + 5 2

So now we need to look for A , B , C , D so that

1 2

(x 3 + 10 x 2 + 25)

x4 + 2 x3 + 5 x2 2 dx x2 + 2 x + 5

And continue by integrating each factor one by one ( and not forgetting the terms
1 2

x 1 ).

= ln(x 2 + 2 x + 5)

3 x +1 + c. arctan 2 2

MA 100, Mathematical Methods Calculus Lecture 16 page 33 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 35 / 42

Partial fractions all together now

Integration by change of variables ( = by substitution )

We may need to combine all these approaches; e.g., to nd x 5 + 25 dx . 2 x 4 + 4 x 3 + 10 x 2 First rewrite : x 5 + 25 = 2 x 4 + 4 x 3 + 10 x 2 We can factorise ( a bit ) : x4 + 2 x3 + 5 x2 =
MA 100, Mathematical Methods Calculus Lecture 16 page 34 / 42

This technique is based on the Chain Rule : d f (g (x )) = f (g (x )) g (x ) . dx So we have : f (g (x )) g (x ) dx = f (g (x )) + c .

General idea : Whenever you see a composite function f (g (x )) , try the substitution u = g (x ) .
MA 100, Mathematical Methods Calculus Lecture 16 page 36 / 42

Integration by change of variables

Integration by change of variables denite integrals

Example :

x ex

+1

dx .
b

Be careful with denite integrals :

g (b )

Try to substitute : then :

u = x 2 + 1;
a

f (g (x )) g (x ) dx = f (g (b )) f (g (a)) =
g (a) 1 1 2

f (u ) du .

du = 2 x , and so : dx

x dx =

du . Example :

x ex

+1

dx .

x =0

So we nd : x ex
2

Using the substitution u = x 2 + 1 again, this becomes : eu

1 2

+1

dx =

du =

1 x =0

x ex

+1

dx =

eu

1 2

du =

MA 100, Mathematical Methods Calculus Lecture 16 page 37 / 42

MA 100, Mathematical Methods Calculus Lecture 16 page 39 / 42

Integration by change of variables

Integration by parts

Example : Try :

x (3 x + 5)7 dx . x =
1 3

This technique is based on the Product Rule :

(u 5) ;
1 3

u = 3 x + 5, hence :

d f (x ) g (x ) = f (x ) g (x ) + f (x ) g (x ) . dx So we have : f (x ) g (x ) = f (x ) g (x ) dx + f (x ) g (x ) dx .

then also We nd :

du = 3, and so : dx = dx

du .

x (3 x + 5)7 dx =

1 3

(u 5) u 7

1 3

du = Hence : f (x ) g (x ) dx = f (x ) g (x ) f (x ) g (x ) dx ;

and possibly / hopefully :

MA 100, Mathematical Methods Calculus Lecture 16 page 38 / 42

f (x ) g (x ) is easier to integrate.
MA 100, Mathematical Methods Calculus Lecture 16 page 40 / 42

Integration by parts

Example :

x ln(x ) dx .

Try : and :

f (x ) = x , so : g (x ) = ln(x ) , so :

So we nd : x ln(x ) dx =

MA 100, Mathematical Methods Calculus Lecture 16 page 41 / 42

Integration by parts

A trick that is useful sometimes is : f (x ) dx = Example : arctan(x ) dx = x arctan(x ) x 1 dx = 1 + x2 1 f (x ) dx = x f (x ) x f (x ) dx .

MA 100, Mathematical Methods Calculus Lecture 16 page 42 / 42