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Learning Objectives

for Section 2.2


2 2 Elementary Functions:
- Graphs &Transformations
The student will become familiar with a beginning library of
elementary functions.
functions
The student will be able to transform functions using vertical
and horizontal shifts.
shifts
The student
Th
t d t will
ill bbe able
bl to transform ffunctions
nctions using
sing
stretches and shrinks.
shrinks
The student will be able to graph piecewise
piecewisedefined
functions.
functions
Calculus for Business & Economics

Problem
Complete the table and graph the function f(x) = x2:
x
-3
-22
-1
0
1
2
3

y = x2

Calculus for Business & Economics

Solution
Complete the table and graph the function f(x) = x2:
x
-3
-22
-1
0
1
2
3

y = x2
9
4
1
0
1
4
9

Calculus for Business & Economics

Problem
Sketch the graph of f(x) = (x 2)2 and explain, in words, how
i iis related
it
l d to the
h graphh off f(
f(x)) = x2:
x
y = (x-2)2
-3
25
-22
16
-1
9
0
4
1
1
2
0
3
1
Calculus for Business & Economics

Comparison
p
off f(
f(x)) = x 2 and f(
f(x)) = (x
( 2))2

Calculus for Business & Economics

Solution ((continued
(continued))
The graph has the same shape as the original function
function. The
difference is that the original graph has been translated two
units to the right on the xxaxis
axis.
Conclusion: The graph of the function (x 2) 2 is the graph of
shifted horizontally two units to the right on the xxaxis
axis.
Notice that replacing x by x 2 shifts the graph horizontally
to the right and not the left.
Correspondingly, replacing x by x + 2 would shift the graph
horizontally to the left.
left
Calculus for Business & Economics

Problem
Sketch the graphs of f(x) = x3 and f(x)=x
f(x) x3 + 5.

Calculus for Business & Economics

Solution
When we shift the graph of f(x) = x3 by 5 units upward, we
get the graph of f(x)=x3 + 5.

Calculus for Business & Economics

Problem
Sketch the graphs of f ( x ) = x and f ( x ) = x
and find the domains.

Calculus for Business & Economics

Solution
The domain is all non
nonnegative
negative real numbers. By reflecting one
of the graphs about the x-axis, we get the graph of the other
one.

Calculus for Business & Economics

10

Problem
Sketch the graphs of f ( x ) = 3 x and f ( x ) = 3 x + 1

Calculus for Business & Economics

11

Solution
When we shift the graph of f ( x ) = 3 x by 1 unit horizontally
to the left, we get the graph of f ( x ) = 3 x + 1

Calculus for Business & Economics

12

Absolute Value Function a(( x ) =| x|


Various graphs involved with the absolute function.

Calculus for Business & Economics

13

Absolute Value Function a( x ) =| x|


(
(continued)
d)
Various graphs involved with the absolute function.

Calculus for Business & Economics

14

Summaryy off Graph


p Transformations
f
1.Vertical
1.VerticalTranslation
Ve t ca Translation:y=f(x)+k
a s at o y ( )
(1)k>0:Shiftgraphofy=f(x)upkunits.
(2)k<0:Shiftgraphofy=f(x)down|k|units.
2.HorizontalTranslation
2.Horizontal
Translation:y=f(x+h)
(1)h>0:Shiftgraphofy=f(x)lefthunits.
(2) h < 0: Shift graph of y = f (x) right |h| units
(2)h<0:Shiftgraphofy=f(x)right|h|units.
3.Reflection:y=f(x).
3.Reflection
Reflectthegraphofy=f(x)inthexaxis.
g p
y
( )
4.VerticalStretchandShrink
4.Vertical
StretchandShrink:y=Af(x)
(1)A>1:Shrinkgraphofy=f(x)verticallybymultiplying
eachcoordinatevaluebyA.
(2)0<A<1:Stretchgraphofy=f(x)verticallyby
multiplying each coordinate value by A
multiplyingeachcoordinatevaluebyA.
Calculus for Business & Economics

15

Piecewise--Defined
Piecewise
f
Functions
Earlier we noted that the absolute value of a real number x can
be defined as
x , if x > 0
| x |=
x , if x < 0
Notice that this function is defined by different rules for
different parts of its domain. Functions whose definitions
involve more than one rule are called piecewise
piecewise--defined
functions.
Graphing one of these functions involves graphing each rule
over the appropriate portion of the domain.
Calculus for Business & Economics

16

Example
p
2 2 x , if x < 2

Sketch the graph of the function: f ( x ) =


x 2 , if x 2

Calculus for Business & Economics

17

Solution
2 2 x , if x < 2

We have the following graph of f ( x ) =


x 2 , if x 2

Calculus for Business & Economics

18

End of Slides
Please, solve the exercise problems , especially the
Please
applications given in the textbook.
If you dont solve a problem by your hands, you will have
a difficult time on the exam.
exam Studying this course consists
of understanding the concepts/techniques and
problems especially the applications.
solving the problems,

Calculus for Business & Economics

19

Learning Objectives
for Section 2.3 Solving Quadratic Functions
The student will be able to identify and define quadratic
ffunctions,, equations,
q
, and inequalities.
inequalities
q
The student will be able to identify and use properties of
qquadratic functions
f
and their graphs.
graphs
g p
The student will be able to solve applications of quadratic
f
functions.
The student will be able to graph and identify properties of
ppolynomial
y
and rational functions.
functions
f

Calculus for Business & Economics

Quadratic Functions
If a, b, c are real numbers with a 0 , then the function
f ( x ) = ax 2 + bx + c

is a quadratic function and its graph is called a parabola


parabola.

Calculus for Business & Economics

Vertex Form of the Quadratic Functions


It is convenient to convert the general form of a quadratic
function
f ( x ) = ax 2 + bx + c
to what is known as the vertex form:
form
f ( x ) = a( x h) + k
2

(h k)
This vertex form gives the vertex of f(x): (h,

Calculus for Business & Economics

Completing the Square


To find the Vertex of a Quadratic Function
The example below illustrates the procedure:
Consider f ( x ) = 3x 2 + 6 x 1
Complete the square to find the vertex.

Calculus for Business & Economics

Solution
Step 1.
1 Factor the coefficient of x2 out of the first two terms:
f ( x ) = 3x 2 + 6 x 1 = 3[ x 2 2 x] 1

Step 2. Recall the formula x + 2ax + a = ( x + a)


By the formula, we have
2
2
2
f ( x ) = 3[ x 2 x + ( 1) ( 1) ] 1
2

= 3[ x 2 2 x + ( 1) 2 ] + 3( 1) 2 1
= 3(( x 1)) + 2
Step 3. From the vertex form, we deduce the vertex (1, 2 )
2

Calculus for Business & Economics

Interceptss of a Quadratic Function


Intercept
The graph of any function has two types of special points:
( something , 0 ) and ( 0 , something )

The first one ( something ,0 ) is called the xintercept (or root


root)
and the second one ( 0 , something ) is called the yintercept
of the function.
3
Example) f ( x ) = 2 x 3 has the xintercept ( ,0 ) and the
2
yyintercept
intercept ( 0 , 3)

Calculus for Business & Economics

Example
Find the x and yy
intercepts of the quadratic function
f ( x ) = 3x 2 + 6 x 1

Calculus for Business & Economics

Solution
1. xintercept : We solve f(x)=0,
f(x) 0, i.e., find x satisfying
0 = 3x 2 + 6 x 1

By the Quadratic Formula,


Formula we have
4
b b 2 4ac
6 6 2 4( 3)( 1)
x=
=
2a
2( 3)
6 24
=
0.18 , 1.82
6
Therefore, we have two xintercepts
intercepts: ( 0.18 ,0 ) and (1.82 ,0 )
Calculus for Business & Economics

Solution (continued)
2. yintercept : Given function f ( x ) = 3x 2 + 6 x 1
implies
f ( 0 ) = 3( 0 ) + 6( 0 ) 1 = 1
Therefore, we have only one yintercept
intercept: ( 0 , 1)

Calculus for Business & Economics

Generalization
2
f
(
x
)
=
a(
x

h)
+k,
For
1. If a 0, then the graph of f(x) is a parabola
parabola.
(1) If a > 0, then the graph is concave upward.
upward
(2) If a < 0, then the graph is concave downward.
downward
In any case, we have the vertex at ( h,, k )
2. Axis of symmetry: x = h
3. (1) If a > 0, then f(x) has the minimum f ( h)) = k
(2) If a < 0, then f(x) has the maximum f ( h) = k
4. Domain of f(x) is the set of all real numbers.
5. Range: (1) If a > 0 , then f(x) has the range { y | y k}}
(2) If a < 0 , then f(x) has the range { y | y k }

Calculus for Business & Economics

10

Solving Quadratic Inequalities


Solve the quadratic inequality 3 x 2 + 6 x 1 0

Calculus for Business & Economics

11

Solving Quadratic Inequalities


Solve the quadratic inequality 3 x 2 + 6 x 1 0

Solution
This inequality holds for those values of x for which the graph
of f(x)
( ) is at or above the xaxis. This happens for x between
the two x intercepts, including the intercepts. (If you look at
h graphh off the
h ffunction, you can understand
d
d this
h very
the
easily.) Thus, the solution set for the quadratic inequality is

0.18 x 1.82
Calculus for Business & Economics

12

Pl
Please,
take
t k a look
l k att th
the Mathematica
M th ti file
fil Section
S ti 2.3
23

Calculus for Business & Economics

13

Application
pp
off Quadratic Functions
A Macon,
Macon Georgia,
Georgia peach orchard farmer now has 20 trees per
acre. Each tree produces, on the average, 300 peaches
acre
peaches. For
each additional tree that the farmer plants, the number of
peaches per tree is reduced by 10.
10
How many more trees should the farmer plant to achieve the
maximum yield of peaches?
What is the maximum yield?

Calculus for Business & Economics

14

Solution
Yield = (number of peaches per tree)(number of trees)
Yield = (300)(20) = 6000 (currently)
Plant
Pl t one more ttree:
Yield = (300 1(10))(20 + 1)
= (290)(21) = 6090 peaches.
h
Plant two more trees:
Yield = (300 2(10))(20 + 2) = (280)(22) = 6160
Plant x more trees:
Yield = (300 x(10))(20 + x)
= -10x2 + 100x + 6000
Calculus for Business & Economics

15

Solution (continued)
From the result above, we define
Y( x ) = 10 x 2 + 100 x + 6000
To find the maximum yield, note that the function Y(x) is a
quadratic function of which graph is concave downward.
Hence, the vertex of the function will be the maximum
value of the yield. Graph is below, with the y value in
thousands.
To find the vertex, we
complete the square.

Calculus for Business & Economics

16

Solution (continued)
We complete the square as follows:
2
Y( x ) = 10( x 10 x ) + 6000
= 10(( x 2 10 x + ( 5 ) 2 ( 5 ) 2 ) + 6000
= 10(( x 5 ) + 10(( 25 ) + 6000
2

= 10( x 5 ) 2 + 6250
It implies that the graph has the vertex ( 5 ,6250
6250 )
So, the farmer should plant 5 additional trees and obtain a
2
yield of 6250 peaches
peaches. The term 10 x in the quadratic
function implies that the graph is concave downward, so the
vertex must be the maximum
maximum.

Calculus for Business & Economics

17

BreakEven Analysis
Break
The financial department of a company that produces digital
cameras has the revenue and cost functions for x million
cameras are as follows:
R( x ) = x( 94.8 5 x )
C( x ) = 156 + 19.7
19 7 x

Both have domain 1 x 15


Breakeven points are the production levels at which
R( x ) = C( x )
Find the break-even points algebraically to the nearest
thousand cameras.
Calculus for Business & Economics

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Solution (continued)
From R( x ) = C( x ) , we deduce
x( 94.8 5 x ) = 156 + 19.7 x
94 8 x 5 x = 156 + 19.7
94.8
19 7 x
2

5 x 2 75.1x + 156 = 0
By the Quadratic Formula, we get
b b 2 4ac
x=
2a
75.1 ( 75.1) 2 4( 5 )(156 )
=
2.49 , 12.53
2( 5 )
Calculus for Business & Economics

19

Solution (continued)
Thus, the break
breakeven
even points are x 2.49 and x 12.53
If we graph the cost and revenue functions on a graphing
utility,
l we obtain
b
the
h ffollowing
ll
graphs,
h showing
h
the
h two
intersection points:

Calculus for Business & Economics

20

Quadratic Regression
A visual inspection of the plot of a data set might indicate that
a parabola would be a better model of the data than a straight
line. In that case, rather than using linear regression to fit a
linear model to the data, we would use quadratic regression
on a graphing calculator to find the function of the form
y( x ) = ax + bx + c
that
h best
b ffits the
h data
d .
2

We skip the example


example.

Calculus for Business & Economics

21

Polynomial Functions
A polynomial function of degree n is a function that can be
written in the form
Pn ( x ) = an x n + an1 x n1 + " + a2 x 2 + a1 x + a0
The domain of a polynomial function is the set of all real
numbers.
A polynomial of degree 0 is a constant.
constant
A polynomial of degree 1 is a linear function.
A polynomial of degree 2 is a quadratic function.
function
A polynomial of degree 3 is a cubic function.
Calculus for Business & Economics

22

Shape of Polynomials
A polynomial is called odd
if it only contains odd powers of x.
A polynomial is called even
if it only contains even powers of x.

Lets look at the shapes of some even and odd polynomials.


Look for some of the following properties:
z Symmetry
z Number of xintercepts
x intercepts
z Number of local maxima/minima
z What happens as x goes to + or -?
Calculus for Business & Economics

23

Examples
Please, confer the Mathematica file Section 2.3

Calculus for Business & Economics

24

Observation of Odd Polynomials


For an odd polynomial,
p y
,
z the graph is symmetric about the origin
z the graphs starts negative, ends positive, or vice versa, depending
on whether
h h the
h leading
l d coefficient
ff
is positive or negative
z either way, a polynomial of degree n crosses the xaxis at least
once at most n times.
once,
times
For an even polynomial,
z the g
graph
p is symmetric
y
about the yyaxis
z the graphs starts negative, ends negative, or starts and ends
positive, depending on whether the leading coefficient is positive or
negative
z either way, a polynomial of degree n crosses the xaxis at most n
times It may or may not cross at all.
times.
all
Calculus for Business & Economics

25

Characteristics of Polynomials
Graphs of polynomials are continuous
continuous. One can sketch the graph
without lifting up the pencil.
p off polynomials
p y
have no sharpp corners.
corners
Graphs
Graphs of polynomials usually have turning points,
points which is a
point that separates an increasing portion of the graph from a
decreasing portion.
A polynomial of degree n can have at most n linear factors.
Th f
Therefore,
the
h graphh off a polynomial
l
i l ffunction
i off positive
i i ddegree n
can intersect the x axis at most n times.
A polynomial of degree n may intersect the x axis fewer than n
times.
Calculus for Business & Economics

26

Rational Functions
A rational function is a quotient of two polynomials, P(x)
and Q(x), for all x such that Q(x) is not equal to zero.
Example: Let P(x) = x + 5 and Q(x) = x 2, then
x+5
R( x ) =
x2

is a rational function whose domain is all real values of x with


the exception of 2 (Why?)

Calculus for Business & Economics

27

Vertical Asymptotes of Rational Functions


x values at which the function is undefined represent
vertical asymptotes to the graph of the function.
A vertical asymptote is a line of the form x = k which the
graph of the function approaches but does not cross. In the
figure below, which is the graph of
x+5
R(( x ) =
x2
the line x = 2 is a vertical asymptote.

Calculus for Business & Economics

28

Horizontal Asymptotes of Rational Functions


A horizontal asymptote of a function is a line of the form y = k
which the graph of the function approaches as x approaches
For example, in the graph of
x+5
R( x ) =
x2
the line y = 1 is a horizontal asymptote.
asymptote

Calculus for Business & Economics

29

Generalization about Asymptotes


of Rational Functions
The number of vertical asymptotes of a rational function
f (x) = n(x)/d(x
( ) is at most equal
qu to the degree
g off d(x)).
A rational ffunction has at most one horizontal asymptote.
y p
The ggraph
p off a rational function
f
approaches
pp
the
horizontal asymptote (when one exists) both as x
increases and decreases without bound.

Calculus for Business & Economics

30

End of Slides
Please, solve the exercise problems , especially the
Please
applications given in the textbook.
If you dont solve a problem by your hands, you will have
a difficult time on the exam.
exam Studying this course consists
of understanding the concepts/techniques and
problems especially the applications.
solving the problems,

Calculus for Business & Economics

31

Objectives
f Section
for
S i 2.4
2 4 Exponential
E
i l Functions
F
i
z The student will be able to graph and identify the properties
of exponential functions.
functions
z The student will be able to apply base e exponential
functions, including growth and decay applications.
applications
z The student will be able to solve compound interest problems.
problems

Calculus for Business & Economics

Exponential
p
Functions
z The equation

f( x) = b

for b>0 defines the exponential function with base b .


z The domain is the set of all real numbers, while the range is
the set of all positive real numbers.
numbers

Calculus for Business & Economics

Riddle
Here is a problem related to exponential functions:
Suppose you received a penny on the first day of December
December,
two pennies on the second day of December
December, four pennies on
the third day,
day eight pennies on the fourth day and so on.
on How
many pennies would you receive on December 31 if this
pattern continues?
Would you rather take this amount of money or receive a lump
sum payment of $10,000,000?
Calculus for Business & Economics

Solution
Day
Dec. 1
Dec 2
Dec.
Dec. 3
Dec. 4

Dec. n

Dec. 31

No of Pennies
1=20
2=21
4=22
8=23

2n-1

230

Calculus for Business & Economics

Currently Total
20
20+21
20+21+22
20+21+22+23

20+21+22+23++2n-1

20+21+22+23++2n-1++230
4

Solution ((continued))
According to the table,
table if this pattern continued,
continued you would
have 230 pennies on Dec. 31. The exponent on two is one less
than the day of the month.
month
gg than $10,000,000,
Since 230=10,737,418.24, which is bigger
thus on Dec. 31, you should get $10,737,418.24.
This example
Thi
l shows
h
h an exponential
how
ti l ffunction
ti grows
extremely rapidly.
rapidly In this case, the exponential function
x
f( x) = 2
is used to model this pproblem.

Calculus for Business & Economics

Graph
p off f( x ) = 2

When we extend the previous table for a real number x, we


have the following graph:

Calculus for Business & Economics

Characteristics
x
f(
x
)
=
b
of the Graph of
when b > 1
1. All graphs will approach the xaxis as x becomes
unbounded and negative.
2. All graphs will pass through ( 0 ,1) (yyintercept
intercept).
3. There are no xxintercepts
intercepts.
4. Domain is all real numbers.
5. Range is all positive real numbers.
numbers
6. The graph is always increasing on its domain.
7. All graphs are continuous curves.

Calculus for Business & Economics

Characteristics
x
f(
x
)
=
b
of the Graph of
when 0 < b < 1
1. All graphs will approach the xaxis as x gets large.
2. All graphs will pass through ( 0 ,1) (yyintercept
intercept).
3. There are no xxintercepts
intercepts.
4. Domain is all real numbers.
5. Range is all positive real numbers.
numbers
6. The graph is always decreasing on its domain.
7. All graphs are continuous curves.

Calculus for Business & Economics

Graphs
p off Exponential
p
Functions
with Various Basis
Please, take a look at the Mathematica file Section 2.4

Calculus for Business & Economics

Exponential
p
Function with Base e
e is an irrational number called the Euler constant
constant.
It represents
e 2.718281828459045235360287471352662497757247
1937
1937
e can be approximated as closely as we like by evaluating the
x
expression
1 + 1

Calculus for Business & Economics

10

st.a
o.pn/ecsihH
da
1lT

.yr/
hotsiku

Leonhard Euler ((1707 1783))


Leonhard Euler first demonstrated that as x gets positively large,
large

1 + 1

will approach a fixed constant we now call e.


So much of our mathematical notation is due to Euler that it will come as
no surprise to find that the notation e for this number is due to him. The
claim which has sometimes been made, however, that Euler used the letter
e because it was the first letter of his name is ridiculous. It is probably not
even the case that the e comes from exponential but it may have just be
the next vowel after a and Euler was already using the notation a in
his work. Whatever the reason is, the notation e made its first appearance
in a letter Euler wrote to Goldbach in 1731.
1731 (http://www-gap.dcs.st(h //
d
and.ac.uk/~history/HistTopics/e.html#s19)
Calculus for Business & Economics

11

Leonhard Euler ((continued))


He made various discoveries regarding
g
ge
in the following years, but it was not until
1748 when Euler published Introductio in
analysin
l
infinitorum
f
that
h he
h gave a full
f ll
treatment of the ideas surrounding e. He
showed that
e = 1 + 1/1! + 1/2! + 1/3! + ...
and that e is the limit of
(1 + 1/n)n
as n tends to infinity.
infinity Euler gave an
approximation for e to 18 decimal places,
e = 2.718281828459045235
Calculus for Business & Economics

12

Graph
p off f( x ) = e x
Since
ince
nce
cee 2 < e < 3,, wee have
ave
vee
2x < ex < 3x for positive x, 2x > e3x > 3x for negative x.

Calculus for Business & Economics

13

Relative Growth Rates


z Functions of the form y(t) = c ekt, where c and k are constants
and the independent variable t represents time, are often used to
model population growth and radioactive decay.
decay
z Note that if t = 0, then y = c. So, the constant c represents the
initial ppopulation
p
(or
( initial amount.))
z The constant k is called the relative growth rate.
rate If the relative
ggrowth rate is k = 0.02, then at anyy time t, the population
p p
is
growing at a rate of 0.02y persons (2% of the population) per
year.
z We say that population is growing continuously at relative
growth rate k to mean that the population y is given by the
model y(t)
( ) = c ekt.
Calculus for Business & Economics

14

Growth & Decayy Applications


pp
- Atmospheric Pressure
The atmospheric pressure P decreases with increasing height.
The pressure is related to the number of kilometers h above the
sea level by the formula: P(h)=760e-0.145h
Question 1. Find the pressure at sea level (h=0).
Question 2. Find the pressure at height of 7 kilometers.

Calculus for Business & Economics

15

Solution
Answer 1. Pressure at sea level: P(0)=760e
P(0) 760e0=760
760
Answer 2. Pressure at a height of 7 kilometers:
P(7)=760e-0.145(7)=275.43

Calculus for Business & Economics

16

Depreciation
p
off a Machine
A machine is initially worth V0 dollars but loses 10% of its
value each year. Its value after t years is given by the formula
V(t)= V0(0.9
V(t)
(0 9t)
Find the value after 8 years of a machine whose initial value is
$30,000.
Solution) V(8)=30000(0.98)=$12,914

Calculus for Business & Economics

17

Compound
p
Interest
The compound interest formula is
r

A = P 1 +
n

nt

Here, A is the future value of the investment, P is the initial


amount (principal), r is the annual interest rate as a decimal, n
represents the number of compounding periods per year, and t
is the number of years.

Calculus for Business & Economics

18

Example
p
Find the amount to which $1500 will grow if deposited in a
bank at 5.75% interest compounded quarterly for 5 years.

Calculus for Business & Economics

19

Solution
Find the amount to which $1500 will grow if deposited in a
bank at 5.75% interest compounded quarterly for 5 years.
Solution) Use the compound interest formula:
r

A = P 1 +
n

nt

Putting P=1500, r=0.0575, n=4, t=5, we obtain


4( 5 )
0
0.0575
0575

A = 1500 1 +
= $1995.55

Calculus for Business & Economics

20

End of Slides
Please, solve the exercise problems , especially the
Please
applications given in the textbook.
If you dont solve a problem by your hands, you will have
a difficult time on the exam.
exam Studying this course consists
of understanding the concepts/techniques and
problems especially the applications.
solving the problems,

Calculus for Business & Economics

21

Learning Objectives
f Section
for
S
2.5 Logarithmic
h
Functions
z The student will be able to use and apply inverse functions
functions.
z The student will be able to use and apply
pp y logarithmic
g
functions and properties of logarithmic functions.
functions
z The student will be able to evaluate logarithms
logarithms.
g

Calculus for Business & Economics

Logarithmic
g
Functions
There is a close connection between a logarithmic function and
an exponential function inverse relation.
relation
We will study the concept of inverse functions as a
prerequisite for our study of logarithmic function.

Calculus for Business & Economics

Oneto
One
to
One Functions
We wish to define an inverse of a function.
function Before we do so
so, it
is necessary to discuss the topic of onetoone functions. First
of all, only certain functions are one
onetoone
to one.
Definition: A function is said to be one
one
to
to
one if distinct
inputs of a function correspond to distinct outputs.
outputs
In notation
notation,
For x1 x 2 , f ( x1 ) f ( x 2 )

Calculus for Business & Economics

Graph
p off One
Oneto
to
One Functions
If we choose two different x values, the corresponding y values
of the one-to-one function should be different.
Lots of graphs will be given in class.

Calculus for Business & Economics

Horizontal Line Test


Recall that for an equation to be a function
function, its graph must
pass the vertical line test.
test That is, a vertical line that sweeps
across the graph of a function from left to right will intersect
the graph only once at each x value.
There is a similar geometric test to determine if a function is
one-to-one.
one
to one. It is called the horizontal line test.
test Any
horizontal line drawn through the graph of a one-to-one
function will cross the graph only once.
once If a horizontal line
crosses a graph more than once, then the function that is
graphed is not one
one-to-one.
to one.
Calculus for Business & Economics

Definition
f
off Inverse Function
Given a one
one--to
to--one function
function, the inverse function is found by
interchanging the x and y values of the original function.
function That
is to say, if an ordered pair (a, b) belongs to the original
function, then the ordered pair (b, a) belongs to the inverse
function.
Note: If a function is not oneone-to
to--one (fails the horizontal line
test), then the inverse of such a function does not exist.
exist

Calculus for Business & Economics

Logarithmic
g
Functions
The logarithmic function with base 2 is defined to be the
inverse of the exponential function with base 2,
2 y=2x.
Notice that the exponential function y=2x is one-to-one and
therefore has an inverse.
Generally, the logarithmic function with base n > 0 is defined
to be the inverse of the exponential function with base n > 0.

Calculus for Business & Economics

Inverse off an Exponential


p
Function
Start with y=2
y 2x
Now, interchange x and y coordinates : x=2y
There are no algebraic techniques that can be used to solve for
y, so we simply call this function y the logarithmic function
with base 2.
2
The definition of this new function is:
l 2 x = y if andd only
log
l if x = 2

Calculus for Business & Economics

Graph, Domain, Range


off Logarithmic
h
Functions
The domain of the logarithmic function y = log2x is the same
as the range
g off the exponential
p
function
f
y = 2x. Why?
y
The range
g off the logarithmic
g
ffunction is the same as the
domain of the exponential function (Again, why?)
Another fact: If one graphs any one-to-one function and its
inverse on the same ggrid,, the two graphs
g p will always
y be
symmetric with respect to the line y = x.
Calculus for Business & Economics

Logarithmic
Logarithmic
g
Exponential
p
Conversions
Study the examples below. You should be able to convert a
logarithmic into an exponential expression and vice versa.
log4 16 = x 4 = 16 x = 2
1
1
log3
= log3 3 = log3 3 3 = 3
27
3
x

1
2

1
81 = 9 81 = 9 log81 9 =
2
3
125 = 5 log5 125 = 3
Calculus for Business & Economics

10

Solvingg Equations
q
Using the definition of a logarithm
logarithm, you can solve equations
involving logarithms.
Examples: log 1000 = 3 b 3 = 10 3 b = 10
b
log6 x = 5 6 = x 7776 = x
5

In each of the above, we converted from log form to


exponential form and solved the resulting equation.

Calculus for Business & Economics

11

Properties
p
off Logarithms
g
(Must
(
Memorize))
These are the properties of logarithms. M and N are positive
real numbers, b not equal to 1, and p and x are real numbers.
(For
For
orr 4,, wee need
eed
edd x > 0).
)..
1. logb 1 = 0

2. logb b = 1

3. logb b x = x

4. b logb x = x

5. logb ( MN ) = log b M + log b N


M
6 logb = logb M logb N
6.
N
7 logb M p = p logb M
7.
8. logb M = logb N if and only if M = N
Calculus for Business & Economics

12

Example
p
Solve for x: log4 ( x + 6 ) + log4 ( x 6 ) = 3

Calculus for Business & Economics

13

Solution
Solve for x: log4 ( x + 6 ) + log4 ( x 6 ) = 3
log4 ( x + 6 )( x 6 ) = 3
log4 ( x 2 36 ) = 3
4 3 = x 2 36
64 = x 2 36
100 = x 2
10 = x
x = 10
Question: why is the answer the positive 10 only?
Calculus for Business & Economics

14

Example
p
Solve for x:

log10 log10 10000 = x

Calculus for Business & Economics

15

Solution
Solve for x:

log10 log10 10000 = x


logg10

=x

110000
0000
1
logg1100
=x
10000
log10 10 4 = x
x = 4

Calculus for Business & Economics

16

Common Logs
g & Natural Logs
g
Common log:
log log x = log10 x
If no base is indicated, the logarithm is assumed to be base 10.
Natural log:
log ln x = loge x
Here e represents the Euler constant, e 2.7181828.

Calculus for Business & Economics

17

Example
p
Solve for x:

ln( x + 1) ln x = 1

Calculus for Business & Economics

18

Solution
Solve for x:

ln( x + 1) ln x = 1
x +1
ln
=1
x
x +1
e=
x
ex = x + 1
( e 1)x = 1
1
x=
e 1

Calculus for Business & Economics

19

Application
pp
How long will it take money to double if compounded monthly
at 4 % interest?

Calculus for Business & Economics

20

Solution
By the compound interest formula,
formula
nt
r

A = P 1 +
n
12 t
0.04

2P = P 1 +

12

12 t
2 = (1.00333
1 00333 )
ln 2 = ln (1.00333 ) = 12t ln (1.00333 )
ln 2
= t t = 17.36
12 ln (1.00333 )
12 t

Calculus for Business & Economics

21

Logarithmic
g
Regression
g
Among increasing functions
functions, the logarithmic functions with
bases b > 1 increase much more slowly for large values of x
than either exponential or polynomial functions
functions. When a visual
inspection of the plot of a data set indicates a slowly increasing
function a logarithmic function provides a good model
function,
model.
We use logarithmic regression on a graphing calculator to find
the function of the form y = a + b ln x that best fits the data.
Again, since the regression subject depends on the calculator,
we skip this subject.
Calculus for Business & Economics

22

End of Slides
Please, solve the exercise problems , especially the
Please
applications given in the textbook.
If you dont solve a problem by your hands, you will have
a difficult time on the exam.
exam Studying this course consists
of understanding the concepts/techniques and
problems especially the applications.
solving the problems,

Calculus for Business & Economics

23

Chapter 2 Review
- Important
I
Terms,
T
Symbols,
S b l Concepts
C
2.1. Functions
Point--by
Point
by--point plotting may be used to sketch the graph of an
equation in two variables: plot enough points from its solution
set in a rectangular coordinate system so that the total graph is
apparent and then connect these points with a smooth curve.
A function is a correspondence between two sets of elements
such that to each element in the first set there corresponds one
and only one element in the second set. The first set is called
the domain and the second set is called the range
range.
Calculus for Business & Economics

Section 2.1 Functions ((continued))


If x represents the elements in the domain of a function, then x
is the independent variable or input. If y represents the
elements in the range, then y is the dependent variable or
output.
If in an equation in two variables we get exactly one output for
each input, then the equation specifies a function. The graph of
such a function is just the graph of the equation. If we get more
than one output for a given input, then the equation does not
specify a function.
Calculus for Business & Economics

Section 2.1 Functions ((continued))


The vertical line test can be used to determine whether or not
an equation in two variables specifies a function.
The functions specified by equations of the form y = mx + b,
b
where m is not equal to 0, are called linear functions.
functions
Functions specified by equations of the form y = b are called
constant functions.
functions

Calculus for Business & Economics

Section 2.1 Functions ((continued))


If a function is specified by an equation and the domain is not
indicated, we agree to assume that the domain is the set of all
inputs that produce outputs that are real numbers.
The symbol f(x) represents the element in the range of f that
corresponds to the element x of the domain.
Break-even and profit
Breakprofit--loss analysis uses a cost function C and
a revenue function R to determine when a company will have a
loss (R < C), break even (R = C) or a profit (R > C).
Calculus for Business & Economics

Section 2.2 Elementary Functions


Graphs
G h &T
Transformations
f
The six basic elementary functions are the identity function,
the square
q
and cube ffunctions,, the square
q
root and cube root
functions and the absolute value function.
function
Performing an operation on a function produces a
transformation of the graph of the function.
The bbasic
Th
i graphh ttransformations
f
ti are: vertical
ti l andd hhorizontal
i t l
translations (shifts), reflection in the xx-axis, and vertical
stretches
t t h andd shrinks.
shrinks
hi k
A piecewise-defined function is a function whose definition
involves more than one formula.
Calculus for Business & Economics

Section 2.3 Q
Quadratic Functions
If a, b, and c are real numbers with a not equal to 0, then the
function f(x) = ax2 + bx + c is a quadratic function in
standard form, and its graph is a parabola
parabola.
The Quadratic Formula,
Formula
b b 2 4ac
x=
, when b 2 4ac 0
2a

can be used to find the x-intercepts.


x intercepts.

Calculus for Business & Economics

Section 2.3 Q
Quadratic Functions ((continued))
Completing the square in the standard form of a quadratic
function produces the vertex form,

f(x) = a(x - h)2 + k


From the vertex form of a quadratic function, we can read off
the vertex
vertex, axis of symmetry
symmetry, intercepts,
intercepts maximum or
minimum, and range, and sketch the graph.
graph
If a revenue function R(x) and a cost function C(x) intersect at
a point (x0, y0),
) then both this point and its coordinate x0 are
referred to as break
break--even points.
points
Calculus for Business & Economics

Section 2.3 Q
Quadratic Functions ((continued))
Quadratic regression on a graphing calculator produces the
function of the form y = ax2 + bx + c that best fits a data set.
A quadratic function is a special case of a polynomial function,
that is, a function that can be written in the form
f(x) = anxn + an-1xn-1 + + a1x + a0
Unlike polynomial functions, a rational function can have
vertical asymptotes (but not more than the degree of the
denominator) and at most one horizontal asymptote.
asymptote
Calculus for Business & Economics

Section 2.4 Exponential


p
Functions
An exponential function is a function of the form
f (x) = bx, where b is not equal to 1, but is a positive constant
called the base
base. The domain of f(x) is the set of all real
numbers and the range is the set of positive real numbers.
The graph of an exponential function is continuous, passes
through (0,1), and has the xx-axis
axis as a horizontal asymptote.
Exponential functions obey the familiar laws of exponents
and satisfy additional properties.
Calculus for Business & Economics

Section 2.4 Exponential


p
Functions ((continued))
The base that is used most frequently in mathematics is the
irrational number e 2.7183
2.7183.
Exponential
Expo
e tial ffunctions
tio s can
a be used
sed to model population
growth and radioactive decay.
decay
Exponential regression on a graphing calculator produces the
function of the form y = a(bx) that best fits a data set.
Exponential functions are used in computations of compound
nt
interest:
interest
r

A = P 1 +
n
Calculus for Business & Economics

10

Section 2.5 Logarithmic


g
Functions
A function is said to be one
one--to
to--one if each range value
corresponds to exactly one domain value.

The inverse of a oneone-to


to--one function f is the function
formed by interchanging the independent and dependent
variables of f. That is, (a, b) is a point on the graph of f if and
only if (b,
(b a) is a point on the graph of the inverse of ff.
A function that is not oneone-to
to--one does not have an inverse
inverse.

Calculus for Business & Economics

11

Section 2.5 Logarithmic


g
Functions ((continued))
The inverse of the exponential function with base b is called
the logarithmic function with base b, denoted y = logb x.
The domain of logb x is the set of all positive real numbers and
the range is the set of all real numbers. Because y = logb x is
the inverse of the function y = bx, y = logb x is equivalent to
x = b y.
Properties of logarithmic functions can be obtained from
corresponding properties of exponential functions.
Calculus for Business & Economics

12

Section 2.5 Logarithmic


g
Functions ((continued))
Logarithms with base 10 are called common logarithms,
logarithms
denoted by log x.
x Logarithms with base e are called natural
logarithms, denoted by ln x.
logarithms
Logarithms can be used to find an investments
investment s doubling time the length of time it takes for the value of an investment to
double.
Logarithmic regression on a graphing calculator produces the
function of the form y = a + b ln x that best fits a data set.
Calculus for Business & Economics

13

End of Slides
Please, solve the exercise problems , especially the
Please
applications given in the textbook.
If you dont solve a problem by your hands, you will have
a difficult time on the exam.
exam Studying this course consists
of understanding the concepts/techniques and
problems especially the applications.
solving the problems,

Calculus for Business & Economics

14

LearningObjectives
forSection3.1IntroductiontoLimits
The student will learn about:
Functions
F
ti
and
d graphs
h
Limits from a graphic approach
Limits from an algebraic approach
q
Limits of difference quotients.

Calculus for Business & Economics

Functions&Graphs
BriefOverview
The graph of a function is the graph of the set of all
ordered
d d pairs
i th
thatt satisfy
ti f th
the ffunction.
ti
Example: f ( x ) = 2 x 1

Calculus for Business & Economics

AnalyzingaLimit(GraphicalApproach)
y g
( p
pp
)
Based on the graph,
graph we observe
as x goes to 3, f(x) = 2x 1 goes to 5
In fact, without using the graph, we observe
as x goes to 1000, f(x) = 2x 1 goes to 1999
We introduce a notation and express as follows:
as
as x 1000,
1000 f(x) = 2x 1 1999
1999

Calculus for Business & Economics

Limit
DEFINITION Using the limit notation,
notation
as x c, f(x) L is compacted into the form:

limx c f ( x ) = L
It reads as
as x goes to c, the limit of f(x) is L.
L.
The meaning of the equation is whenever x is close
(either side) to c,
c but not equal to cc, f(x) is close to th
e single real number L.

Calculus for Business & Economics

OneSidedLimit
One
We write limx c f ( x ) = K
and call K the limit from the left (or left
left
hand limit)
limit
if f (x) is close to K whenever x is close to c, but to th
e left of c on the real number line.
We write limx c + f ( x ) = L
and call L the limit from the right (or right
right
hand li
mit) if f (x) is close to L whenever x is close to c, but t
mit
o the right of c on the real number line.
In order for a limit to exist,
exist the limit from the left and
the limit from the right must exist and be equal.
Calculus for Business & Economics

Example
p (confertheMathematica
onfertheMathematica fileSec3.1
fileSec3.1))
limx 2 f ( x ) = 2
b lilimx 2 + f ( x ) = 3
but
So limx 2 f ( x ): not exists
So,
exists.
limx 4 f ( x ) = 5
andd lim
li x 4 + f ( x ) = 5
So limx 4 f ( x ) = 5
So,
Calculus for Business & Economics

LimitProperties(AlgebraicApproach)
p
( g
pp
)
Let f and g be two functions,
functions and assume that the
following two limits exist and are finite:
limx c f ( x ) = L and limx c g( x ) = K

Then (1) the limit of the sum of the functions is e


qual to the sum of the limits and the limit of the
q
difference of the functions is equal to the differenc
e of the limits:
limx c [ f ( x ) g( x )]
limx c [ f ( x ) + g( x )]
= limx c f ( x ) + limx c g( x ) = limx c f ( x ) limx c g( x )

=L+K
Calculus for Business & Economics

= LK

LimitProperties(AlgebraicApproach)
p
( g
pp
)
(2) The limit of a constant times a function is equ
al to the constant times the limit of the function:
limx c [ af ( x )] = a[limx c f ( x )] = aL, a: constant
(3) The limit of the product of the functions is the
product of the limits of the functions:
p

limx c [ f ( x ) g( x )] = [limx c f ( x )][limx c g( x )] = LK

Calculus for Business & Economics

LimitProperties(AlgebraicApproach)
p
( g
pp
)
(4) The limit of the quotient of the function is the
quotient of the limit of the function, provided tha
t K is
i nott equall to
t 0:
0
f ( x ) limx c f ( x ) L
li x c
lim
=
= , if lim
li x c g(( x ) 0
g( x ) limx c g( x ) K
(5) The limit of the nn-th root of a function is the n
-th root of the limit of that function:
1
n

1
n

1
n

limx c [ f ( x )] = [limx c f ( x )] = L
Calculus for Business & Economics

Example
p
lim( x 3x ) = lim x 3 lim x = 4 3( 2 ) = 2
2

x 2

x 2

x 2

lim(
m(
2
x
)
2
x
8

x 4
lim
=
=

x 4 3x + 1
lim( 3x + 1 ) 13
x 4

From these examples, we conclude that


(1) for any polynomial f(x),
f(x)
lim f ( x ) = f ( c )
x c

(2) for any rational function R(x) with a nonzero de


nominator at x = c,
lim R( x ) = R( c )
x c

Calculus for Business & Economics

10

IndeterminateForms
If

lim f ( x ) = 0 and lim g( x ) = 0


x c

th
then,

x c

f( x)
g( x )
or lim
lim
x c g( x )
x c f ( x )

is said to be indeterminate
indeterminate. The term indetermina
te is used because the limit may or may not exist.
How to make the indeterminate form to be dete
rminate? Simplify the quotient!
Calculus for Business & Economics

11

Examples
p

x2 4
( x + 2 )( x 2 )
lim
= lim
= lim( x + 2 ) = 4
x 2 x 2
x 2
x 2
x2
( x 1) 2
( x 1) 2
x 1
lim 2
= lim
= lim
=0
x 1 x 1
x 1 ( x + 1)( x 1)
x 1 x + 1

Calculus for Business & Economics

12

DifferenceQuotients
For f(x) = 3x 1,
1 find lim f ( a + h) f ( a)
h 0
h

Calculus for Business & Economics

13

Solution
For f(x) = 3x 1,
1 find lim f ( a + h) f ( a)
h 0
h
Solution:

f ( a + h) = 3( a + h) 1 = 3a + 3h 1
f ( a) = 3a 1
f ( a + h) f ( a) = 3h
f ( a + h) f ( a)
3h
lim
= lim = 3
h 0
h 0 h
h

Calculus for Business & Economics

14

Summaryy
We started by using a table to investigate the i
dea of a limit.
limit This was an intuitive way to approa
ch
h limits.
li i
We saw that if the left and right limits at a poi
nt were the same, we had a limit at that point.
point
We saw that we could add, subtract, multiply,
and divide limits.
limits
We now have some very powerful tools for deali
ng with
ith limits
li it and
d can go on to
t our study
t d off calcul
l l
us.
Calculus for Business & Economics

15

3.7 Marginal Analysis in Business and Economics


Let x be the number of units of a product.
(1) For the total cost function C (x), the marginal cost function is de ned by its derivative C 0 (x).
(2) For the total revenue function R(x), the marginal revenue function is de ned by its derivative
R0 (x).
(3) For the total pro t function P (x), the marginal profit function is de ned by its derivative P 0 (x).
Definition.

Total cost of producing (x + 1) items is C (x + 1). Total cost of producing x items is C (x).
Thus, we deduce that the total cost of producing (x + 1)th item is C (x + 1) C (x). Similar statements
can be made for the revenue and pro t.
Remark.

Let the total cost function C (x) = 90 0:1x is given.


(1) Find the marginal cost function.
(2) Find the marginal cost when x = 500 and interpret the result.
(3) Find the exact cost of producing 501th item.
Example.

Answer. (1) C 0 (x) = 90 0:1x.

(2) C 0 (500) = 40. At production level of 500 units, the total cost increases at the rate of 40.
(3) C (501) C (500) = 39:95.

Theorem.

i.e.,

The marginal cost function approximates the exact cost of producing the (x + 1)th item,
C 0 (x)  C (x + 1)

C (x):

Similar statements can be made for total revenue function and total pro t function.

Example.

item.

For C (x) = 10000 + 90x 0:05x2 , use the marginal cost to approximate the cost of the 335th

Answer. C 0 (x) = 90 0:1x implies C 0 (334) = 56:6. Thus the approximated cost is 56:6. For your informa-

tion, the exact cost is C (335) C (334) = 56:55. We observe the approximated cost is very close to the exact
cost. So it is good to use the approximated cost instead of the exact cost.

More Examples? Please solve the problems given in the textbook.

4.1 The Constant


Theorem

e and Continuous Compound Interest

(Continuous Compound Interest Formula).


A = P ert

where P is the principal, r is the annual nominal interest rate compounded continuously, t is the time
in years and A is the amount at time t and e is the Euler constant e  2:71.
Let 1000 DHS be invested at 5% compounded continuously.
(1) What amount will be in the account after 3 years? How much interest will be earned?
(2) How long will it take for the account to be worth 2000 DHS?
Example.

Answer. (1) By the formula, we get


A = P ert = 1000e(0:05)(3)  1161:83 DHS:

The interest earned is

1161:83 1000 = 161:83 DHS:

(2) We solve the following equation:


2000 = 1000e0:05t ;

i:e:;

2 = e0:05t ;

i:e:;

ln 2 = 0:05t;

i:e:;

t=

ln 2
0:05

 13:8629:

Thus, it takes about 13:8629 years.

A bank note will pay 30000 DHS at maturityy 5 years from now. How much should you be
willing to pay for the note now if money is worth 7% compounded continuously?

Example.

Answer. The problem asks to nd P in the following equation:


30000 = P e0:07(5) ;

i:e:;

30000 = P e0:35 ;

i:e:;

P=

30000
e0:35

 21140:6

 a promissory note issued by a bank payable to bearer on demand but without interest and circulating as money
y the time when a note or bill of exchange becomes due

4.2 Derivatives of Exponential and Logarithmic Functions


Theorem

(Derivative of ex ). The derivative of f (x) = ex is the function itself, i.e.,


d x
e = ex ;
dx

Example.

(ex )0 = ex :

Find f 0 (x) for f (x) = 5ex 3x4 7xe + e2 .

Answer. f 0 (x) = 5(ex )0 3(x4 )0 7(xe )0 + (e2 )0 = 5ex 12x3 7exe 1 + 0 = 5ex 12x3 7exe 1 :
Theorem

(Derivative of ln x). The derivative of f (x) = ln x is 1=x, i.e.,


d
1
ln x = ;
dx
x

1
(ln x)0 = :
x

Be careful! \ln x" means \the natural logarithmic function", i.e., ln x = loge x, where e is the Euler
constant.
Example.

Find y0 for y = 3ex + 5 ln x + x4 ln x6 .

Answer. First we simplify y and then di erentiate it:


y = 3ex + 5 ln x + x4
y 0 = 3(ex )0

Theorem

(ln x)0 + (x4 )0 = 3ex

ln x + x4 ;

1
+ 4 x3 :
x

(Other Exponential and Logarithmic Functions). For b > 0, b 6= 1,

d x
e = ex ;
dx
Example.

6 ln x = 3ex

d
1
ln x = ;
dx
x

d x x
b = b ln b;
dx


d
1 1
logb x =
:
dx
ln b x

Find f 0 (x) for f (x) = 2x 3x + x10 + 10x + log2 x 6 log5 x + log4 x5 + log3 (10x2 ).

Answer. First we simplify f (x) and then di erentiate it:


f (x) = 2x 3x + x10 + 10x + log2 x 6 log5 x + log4 x5 + log3 (10x2 )
= 2x 3x + x10 + 10x + log2 x 6 log5 x + 5 log4 x + log3 10 + log3 x2
= 2x 3x + x10 + 10x + log2 x 6 log5 x + 5 log4 x + log3 10 + 2 log3 x
f 0 (x) = (2x )0 (3x )0 + (x10 )0 + (10x )0 + (log2 x)0 6(log5 x)0 + 5(log4 x)0 + (log3 10)0 + 2(log3 x)0
6 1
5 1
2 1
1 1
+
+0+
= 2x ln 2 3x ln 3 + 10x9 + 10x ln 10 +
ln 2 x ln 5 x ln 4 x  ln 3 x

6
5
2 1
1
= 2x ln 2 3x ln 3 + 10x9 + 10x ln 10 +
+
+
:
ln 2 ln 5 ln 4 ln 3 x

4.3 Derivatives of Products and Quotients


Theorem

(Product Rule). If y = f (x) = F (x)S (x), then


f 0 (x) = F 0 (x)S (x) + F (x)S 0 (x):

Also,

Example.

dy
dF
dS
=
S+F
:
dx
dx
dx

y0 = F 0S + F S 0;

Find f 0 (x) for f (x) = (3x + 2)(4x2 5x).

Answer. Let F (x) = 3x + 2 and S (x) = 4x2 5x. Then f (x) = F (x)S (x) and by the formula above,
f 0 (x) = F 0 (x)S (x) + F (x)S 0 (x)
= (3x + 2)0 (4x2 5x) + (3x + 2)(4x2 5x)0
= 3(4x2 5x) + (3x + 2)(8x 5) = 2(18x2 7x

Theorem

(Quotient Rule). If y = f (x) =

F (x)
, then
S (x )

f 0 (x) =

Also,
y0 =

Example.

F 0S

Find f 0 (x) for f (x) =

S2

5):

F S0

F 0 (x)S (x) F (x)S 0 (x)


:
S 2 (x)
dy
=
dx

dF
dx

S2

dS
dx

x3
.
2x 1

Answer. Let F (x) = x3 and S (x) = 2x 1. Then f (x) =

F (x)
and by the formula above,
S (x)

F 0 (x)S (x) F (x)S 0 (x)


S 2 (x )
(x3 )0 (2x 1) (x3 )(2x 1)0
=
(2x 1)2
3x2 (2x 1) 2x3 4x3 3x2 (4x 3)x2
=
=
=
:
(2x 1)2
(2x 1)2
(2x 1)2

f 0 (x ) =

4.4 The Chain Rule


Definition.

A function m is a composite of functions f and g if


m(x) = f [g (x)]:

Example.

Let f (u) = eu and g(x) = 3x. Find f [g(x)] and g[f (u)].

Answer.

f [g (x)] = f [ 3x] = e

3x :

g [f (x)] = g [eu ] = 3eu :

(1) Let f (u) = eu and g(x) = ex . Find f [g(x)] and g[f (u)].
(2) Let f (u) = eu and g(x) = ln x. Find f [g(x)] and g[f (u)].
Exercise.

Theorem

(Chain Rule). If y = f (u) and u = g (x) de ne the composite function


y = m(x) = f [g (x)]

then

y = f 0 [g (x)]g 0 (x);

or

dy dy du
=
:
dx du dx

Find dy=du, du=dx and dy=dx (express dy=dx as a function of x).


(1) y =
and u = 3x2 + 1.
(2) y = eu and u = 2x3 + 5.
Example.

u3=2

Answer.
(1)

(2)

Exercise.

dy
du
du
dx
dy
dx
dy
du
du
dx
dy
dx

=
=
=
=
=
=

d 3=2
3
u = (u3=2 )0 = u1=2 :
du
2
d
(3x2 + 1) = (3x2 + 1)0 = 6x:
dx
dy dy 3 1=2
= u (6x) = 9x(3x2 + 1)1=2 :
du dx 2
d u
e = (eu )0 = eu :
du
d
(2x3 + 5) = (2x3 + 5)0 = 6x2 :
dx
dy dy
3
= eu (6x2 ) = 6x2 e2x +5 :
du dx

Find dy=dx for y = e3x + 3ex + eex + eln(x+2) + log1:8 3x + log4 (x2 + 3) + log5 (ex ) + ln(ln x).
1

4.5 Implicit Differentiation


Problem 1: Let us consider the problem: nd dy=dx from 3x2 + y 2 = 0.
The given equation implies y = 2 3x2 . Di erentiating it with respect to x, we get
dy
d 
=
2
dx dx

3x2 = (2 3x2 )0 = 6x;

dy
= 6x:
dx

i:e:;

We say that the equation y = 2 3x2 gives explicitly y as a function of x, while the equation 3x2 + y 2 = 0
gives implicitly y . The technique discussed here in this section is about nding dy=dx without changing
the implicit form of an equation into the explicit one.
Problem 2: Let us consider the problem: nd dy=dx from y 2

x = 0.

Solution 1 (Using Explicit Form). The equation is given in the implicit form. We change it into the
explicit form:

y 2 = x;

y =  x = x1=2 :

i:e:;

Di erentiating it with respect to x, we get



0
dy
d  1=2 
1
=

x
=  x1=2 =  x
dx dx
2

1=2

=

1
p
:
2 x

(F)

Solution 2 (Implicit Di erentiation). We just di erentiate the whole equation with respect to x:
d  2
y
dx

x =

d
(0) ;
dx

dy 2
dx

i:e:;

dx
= 0;
dx

dy 2
dx

i:e:;

1 = 0:

Here we have the problem: how do we di erentiate y 2 with respect to x? That is, what is

dy 2
?
dx

This is the place where we must use the CHAIN RULE and this is the reason why
we learned the chain rule just before this section.
Using the chain rule, we have

dy 2 dy 2 dy  2 0 dy
dy
=
= y
= 2y ;
dx
dy dx
dx
dx

Thus, we have

dy 2
dx
p
Since y =  x, we have

1 = 0;

i:e:;

2y

dy
dx

1 = 0;

dy
1
1
= = p ;
dx 2y
2 x

which is exactly same as the result in (F).

dy 2
dy
= 2y :
dx
dx
i:e:;

dy
1
= :
dx 2y

Use implicit di erentiation to nd y0 and evaluate y0 at the indicated point: x2 + y3 = 31


at (x; y) = (2; 3).
Example.

Solution. Di erentiating the whole equation with respect to x, we get


d  2 3 d
dx2 dy 3
dy 3 dy
x + y = 31;
+
= 0;
2x +
= 0;
dx
dx
dx dx
dy dx
dy
dy
dy
2x
2x + 3 y 2 = 0 ;
3y 2 = 2x;
=
:
dx
dx
dx
3y 2

Therefore, the value of y 0 at (x; y ) = (2; 3) is obtained as follows:


y0j

dy
2(2)
4
=

=
=
:
(2;3)
2

dx (2;3)
3(3 )
27

Exercise.

Find y0 from 2x + 6y 4 = 0.

Exercise.

Use implicit di erentiation to nd y0 and evaluate y0 at the indicated point: 5x3 y 1 = 0

at (1; 4).

Use implicit di erentiation to nd y0 and evaluate y0 at the indicated point.


(1) x3 y = ln y at (1; 1).
(2) ln y = 2y2 x at (2; 1).
(3) ey = x3 + y4 at (1; 0).
Exercise.

5.1 First Derivative and Graphs


In this section, we discuss four topics: Increasing and Decreasing Functions, Local

Extrema, First{Derivative Test, Applications to Economics.


Increasing and Decreasing Functions

Let us think about the escalator. We have two kinds of escalator: one always going
upward and the other one always going downward. When we take the escalator going
upward, obviously we can reach upstairs. If we take the other escalator, we can reach
downstairs.
Now we consider the graph of y = x2 . On the interval [0; 1), as x goes to the right{
hand side, the graph is going upward. So the graph of y = x2 on the interval [0; 1)
looks like the escalator always going upward. On the other hand, the graph of y = x2
on the interval ( 1; 0] looks like the escalator always going downward, because as x
goes to the right{hand side, the graph is going downward.
If a graph of a function looks like the escalator always going upward on an interval
[a; b], we say that the graph/function is increasing on [a; b].
If a graph of a function looks like the escalator always going downward on an interval
[a; b], we say that the graph/function is decreasing on [a; b].
We observe the followings:
(1) On the interval where the graph/function f is increasing, the slope of the tangent
line is positive, which implies f 0 (x) > 0 on the interval.
(2) On the interval where the graph/function f is decreasing, the slope of the tangent
line is negative, which implies f 0 (x) < 0 on the interval.
Then what is the slope of the tangent line at the point where the graph/function
is neither increasing nor decreasing? The slope should be between positiveness and
negativeness, that is, the slope should be zero, which implies f 0 (x) = 0 on the interval.
We can summarize this argument in the Theorem.

Theorem 1

(Increasing and Decreasing Functions). For the interval (a; b),


f 0 (x)

f (x )

Graph of f
Examples
Increases
Rises
Given in Class
Decreases
Falls
Given in Class

For the graphs of f (x) = x2 and g (x) = jxj, discuss the relationship
between the graph of each function at x = 0 and the derivative of the function at
x = 0. (Please confer the gures below.)

Discussion 2.

fHxL=x 2

gHxL=x

20

10

x
-4

-2

Example 3.

-4

Given the function f (x) = x2

-2

6x + 10,

(1) Which values of x correspond to horizontal tangent lines?


(2) For which values of x is f (x) increasing? Decreasing?
(3) Sketch a graph of f . Add any horizontal tangent lines.

Solution. (1) A horizontal tangent line at x = a is equivalent to f 0 (a) = 0. So we nd


x = a at which f 0 (x) = 0:

f 0 (x ) = 2 x

6 = 2(x 3) = 0

at x = 3:

Therefore, f 0 (3) = 0 and so we have the horizontal tangent line at x = 3.


(2) f (x) is increasing on (a; b) if and only if f 0 (x) > 0 on (a; b). Since f 0 (x) = 2(x 3) >
0 for x > 3, i.e., on (3; 1), thus f (x) is increasing on (3; 1).

f (x) is decreasing on (c; d) if and only if f 0 (x) < 0 on (c; d). Since f 0 (x) = 2(x 3) < 0
for x < 3, i.e., on ( 1; 3), thus f (x) is increasing on ( 1; 3).

When we use the sign chart, we can easily get the sign of f 0 (x):
Less than 3 3 Bigger than 3
f 0 (x) = 2(x 3)
0
+
f (x )
Decreases 1
Increases
x

(3) Please confer the gure below.


fHxL=x 2 -6x+10
17

10

5
1
-1 0

x
1

The point at which f has the horizontal (f 0 (x) = 0) or vertical tangent line (f 0 (x)
does not exist) is very important.
(Critical Values). The values of x in the domain of f where f 0 (x) = 0
or where f 0 (x) does not exist are called the critical values of f .
Definition 4

Find (1) the critical values of f , (2) the intervals on which f is increasing,
and (3) those on which f is decreasing, for f (x) = 1 x3 .

Example 5.

Solution. We start with the derivative: f 0 (x) = 3x2 .


(1) Since f 0 (x) = 3x2 = 0 at x = 0 which is in the domain of f , so f has the only
critical value 0.
(2) We use the sign chart:

x
f 0 (x) = 3x2
f (x )

Less than 0 0 Bigger than 0


0
Decreases 1
Decreases

Thus, there is no interval on which f is increasing.


(3) By the sign chart in (2), f is decreasing on ( 1; 0) and (0; 1). Since f is continuous at x = 0, it follows that f is decreasing for all x. Please confer the gure
below.

fHxL=-x 3

x
1

-1

Find (1) the critical values of f , (2) the intervals on which f is increasing,
and (3) those on which f is decreasing, for f (x) = (1 + x)1=3 .

Example 6.

1
.
3(1 + x)2=3
(1) Since f 0 (x) does not exist at x = 1 which is in the domain of f , so f has the only
critical value 1.

Solution. We start with the derivative: f 0 (x) =

(2) We use the sign chart:


Less than 1
1
Bigger than 1
f 0 (x )
+
Does Not Exist
+
f (x)
Increases
0
Increases
x

f is increasing on ( 1; 0) and (0; 1). Since f is continuous at x = 0, it follows that


f is increasing for all x.

(3) By the sign chart in (2), there is no interval where f is decreasing. Please confer
the gure below.

fHxL=H1+xL13

x
-5

-3

-1

-1

Find (1) the critical values of f , (2) the intervals on which f is increasing,
1
and (3) those on which f is decreasing, for f (x) = .
x

Example 7.

1
.
x2
(1) Since f 0 (x) does not exist at x = 0 which is not in the domain of f , so f does not
have any critical value. However, we use the value x = 0 in the sign chart.

Solution. We start with the derivative: f 0 (x) =

(2) We use the sign chart:


x

Less than 0

f 0 (x )
f (x )

Decreases

0
Bigger than 0
Does Not Exist
Does Not Exist
Decreases

Thus, there is no interval on which f is increasing.


(3) By the sign chart in (2), f is decreasing on (
gure below.

1; 0) and (0; 1). Please confer the

1
fHxL=
x

x
-5

-3

-1

-1

Find (1) the critical values of f , (2) the intervals on which f is increasing,
and (3) those on which f is decreasing, for f (x) = 5 ln x x.

Example 8.

Solution. We observe that f (x) has the domain (0; 1) and start with the derivative:
5
x

5 x 5 x
=
.
x x
x
5 x
(1) Since f 0 (x) =
= 0 at x = 5 which is in the domain of f and f 0 (x) does not
x
exist at x = 0 which is not in the domain of f , so f has two critical values 0 and 5.
f 0 (x) =

1=

(2) We use the sign chart:


0
Between 0 and 5
5
Bigger than 5
f 0 (x) Does Not Exist
+
0
f (x) Does Not Exist
Increases
5 ln 5 5
Decreases
x

Thus, f is increasing on (0; 5).


(3) By the sign chart in (2), f is decreasing on (
gure below.

1; 0) and (5; 1). Please confer the

fHxL=5Log@xD-x
3

x
1

10

A student examined the sign chart in the Example above with f (x) =
1=x and conclude that f (x) is decreasing for all x except x = 0. However, f ( 1) =
1 < f (1) = 1, which seems to indicate that f is increasing. Discuss the di erence
between the correct answer in the Example and the student's answer. Explain why
the student's description of where f is decreasing is unacceptable.
Discussion 9.

Exercise 10.

For the given gure, solve the problems.

(1) Identify the intervals on which f (x) is increasing.


(2) Identify the intervals on which f (x) is decreasing.
(3) Identify the intervals on which f 0 (x) < 0.
(4) Identify the intervals on which f 0 (x) > 0.
7

(5) Identify the x coordinate of the points where f 0 (x) = 0.


(6) Identify the x coordinate of the points where f 0 (x) does not exist.
Local Extrema

(1) f (c) is called a local maximum if there exist an interval (m; n)


containing c such that f (x)  f (c) for all x in (m; n).

Definition 11.

(2) f (c) is called a local minimum if there exist an interval (m; n) containing c such
that f (x)  f (c) for all x in (m; n).
(3) f (c) is called a local extremum if it is either a local maximum or a local minimum.
(4) A point on a graph where a local extremum occurs is also called a turning point .
How to nd the local extremum? If the graph changes from rising/increasing to
falling/decreasing, the high point is the local maximum point. If the graph changes
from falling/decreasing to rising/increasing, the low point is the local minimum point.
Example 12.

For the given gure, nd the local extrema and critical values.

Solution. (1) Local maximum occurs at x = d, because the graph changes from rising
to falling at x = d.
(2) Local minima occur at x = b and x = g , because the graph changes from falling
to rising at x = b and x = g .

(3) f has critical values (at which f has the horizontal tangent line, i.e., f 0 = 0) x = c,
x = d and x = g ; and critical values (at which f has the vertical tangent line, i.e., f 0
does not exist) x = b and x = h.

From the example above, we observe that the local extrema occur only at the critical
values. So we have the following theorem.
(Existence of Local Extrema). If f is continuous on the interval (a; b),
c is a number in (a; b) and f (c) is a local extremum, then f has the critical value at
x = c. That is, either f 0 (c) = 0 (i.e., f has the horizontal tangent line at x = c) or
f 0 (c) does not exist (i.e., f has the vertical tangent line at x = c).
Theorem 13

FirstDerivative Test

Our strategy for nding local extrema is clear: We nd all critical values of f and test
each one to see if it produces a local maximum, a local minimum, or neither.
We recall that the graph changes from rising/increasing to falling/decreasing, the
high point is a local maximum. The graph changes from falling/decreasing to rising/increasing, the low point is a local minimum. Based on this observation, we
deduce the following important theorem.
(First{Derivative Test for Local Extrema). Let c be a critical value of f .
(That is, f (c) is de ned and either f 0 (c) = 0 or f 0 (c) is not de ned.) If f 0 (x) changes
the sign around x = c, then f has the local extrema at c.
Theorem 14

Speci cally, (1) if f 0 (x) is positive (meaning f is rising/increasing ) on the left{hand


side of x = c and negative (meaning f is falling/decreasing ) on the right{hand
side of x = c, then f has the local maximum at x = c.
(2) if f 0 (x) is negative (meaning f is falling/decreasing ) on the left{hand side of
x = c and positive (meaning f is rising/increasing ) on the right{hand side of
x = c, then f has the local minimum at x = c.
Example 15.

Given f (x) = x3

9x2 + 24x 10,

(1) Find the critical values of f .


9

(2) Find the local extrema.


(3) Sketch a graph of f .

Solution. We make the sign chart and answer to those questions.


Step 1 Critical Values: We start with the derivative.
f 0 (x) = 3x2

18x + 24 = 3(x2

6x + 8) = 3(x 2)(x 4):

Since f 0 (x) = 0 at x = 2 and x = 4 which are in the domain (


two critical values x = 2 and x = 4.

1; 1) of f , so f has

Step 2 Sign Chart


Less than 2 2 Between 2 and 4 4 Bigger than 4
f 0 (x)
+
0
0
+
f (x) Increases 10
Decreases
6
Increases
x

From the sign chart, we observe f 0 is positive on the left{hand side of 2 and negative on
the right{hand side of 2. So by the FirstDerivative Test , f has the local maximum
value f (2) = 10 at x = 2.
Also f 0 is negative on the left{hand side of 4 and positive on the right{hand side of 4.
So by the FirstDerivative Test , f has the local minimum value f (4) = 6 at x = 4.

We can check our answers from the graph.


f@xD=x 3 -9x 2 +24x-10

10

10

Applications to Economics
s'@tD

1
t
6

16

20

-4

The graph approximates the rate of change of the U.S. Share of the
total world production of motor vehicles over a 20{year period, where S (t) is the U.S.
Share (as a percentage) and t is time (in years).
Example 16.

(1) Write a brief verbal description of the graph of y = S (t), including a discussion of
any local extrema.
(2) Sketch a possible graph of y = S (t).

Solution. From the graph, we can make a sign chart:


t

Between 0 and 6

S 0 (t )
S (t)

Decreases

6
Between 6 and 16
16
Bigger than 16
0
+
0
Don't Know
Increases
Don't Know
Decreases

So from the chart, we observe


(i) S (t) is decreasing on (0; 6) [ (16; 20), while S (t) is increasing on (6; 16).
(ii) Since S 0 (t) changes its sign (from to +) around 6, by the FirstDerivative
Test , we get S (t) has the local minimum at t = 6. Since S 0 (t) changes its sign (from +
to ) around 16, by the FirstDerivative Test , we get S (t) has the local maximum
at t = 16.

A plausible graph of S (t) is given below.

11

S@tD
t
6

16

20

The graph of the total pro t P (x) (in dollars) from the sale of x cordless
electric screwdrivers is shown in the gure.

Example 17.

P@xD
125
x
100

150

200

250

-1000

(1) Write a brief verbal description of the graph of the marginal pro t function y =
P 0 (x), including a discussion of any x intercepts.
(2) Sketch a possible graph of y = P 0 (x).

Solution. From the graph, we can make a sign chart.


Less than 150 150 Bigger than 150
P 0 (x )
+
0
P (x)
Increases
125
Decreases
x

From the sign chart, we observe that the marginal pro t function P 0 (x) is positive on
(0; 150) and negative on (150; 250). And P 0 (x) = 0 at x = 150.
12

A plausible graph of y = P 0 (x) is given below.


P'@xD

x
100

150

13

200

250