ECON 312 │ Introduction

Mathematical Economics

WEEK: _3___

AY 2021-2022

STUDENT’S NAME: ___________________________________

YEAR AND SECTION: ___________________________________

DATE RECEIVED: ___________________________________

TEACHER’S NAME: LESANDRA C. BASCO _______________

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 TOPIC:
Relations and Functions

I. Overview

“The best way of learning about anything is by doing‖ by Richard Branson. As the quote says the best way
to learn about something is you should do it and practice it at your own pace. The quotes are no different in
studying MATHEMATICAL ECONOMICS. For you to understand and appreciate the use of it you should do
it!. By the way, this module will be focusing on the relation and function, and rules of exponents.

II. Learning Outcomes

1. To explain and analyze relations and functions, and

rules of exponents

III.Discussion and
Self-Assessment
Activities (SAA)

What will you learn?

At the end of this lesson you are expected to learn the following:

1. To explain and relations and functions and identify the types of functions.
2. To differentiate ordered pairs from unordered pairs.
3. To explain and analyze the rules of exponents

UNORDERED PAIRS
In writing a set {a, b} we do not care about the order of the element a and b appears, because by
definition {a, b}= {b, a}. The pairs of elements a and b is in this case an unordered pair.

ORDERED PAIRS
When the ordering of a and b does not carry a significance, however, we can write two different
ordered pairs denote by (a,b) and (b, a), which have the property that (a,b) ≠ (b, a), Similar concepts
apply to a set with more than two elements, in which case we can distinguish between ordered and
unordered triples, quadruples, quintuples and so forth. Ordered pairs, triples, etc., collectively can be
called ordered sets; they are enclosed with parenthesis rather than braces.

Example No. 1
To show the age and the weight of each student in a class, we can form ordered pairs (a,w), in which
the first elements indicate the age (in years) and the second elements indicate the weight (in pounds).
Then (19,127) and (127, 19) mean different things. Moreover, the latter ordered pairs would hardly fit
any students anywhere.

Example No. 2
When we speak of the set of all contestants in an Olympic game, the order in which they are listed is
of no consequences and we have an unordered set. But the set {gold-medalist, silver medalist,
bronze medalist} is an ordered triple.

Ordered pairs, like other objects, can be elements of a set. Consider the rectangular (Cartesian)
coordinate plane in Figure 2.4, where an axis and a axis cross each other at a right angle dividing
the plane into four quadrants. This plane is an infinite set of points, each of which represents an

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 ordered pair whose first element is a value and the second element a value. The point labeled (4,
2) is different from the point (2, 4). Thus ordering is significant here.

figure 2.4
Quadrant II Y Quadrant I
5

0 x
-3 -2 -1 0 1 2 3 4 5
-1

-2

-3

Quadrant III -4 Quadrant IV

With this visual understanding, we are now ready to consider the process of generation of ordered
pairs. For instance, there are two given sets, x={1,2} and y={3,4}, we wanted to form a possible
ordered pair with the first element taken from set x and the second element of the ordered pair taken
from set y. The result will lead to four ordered pairs (1,3), (1,4),(2,3), and (2,4). This set is called the
Cartesian Product (named after (Rene Descartes), or a direct product of the set x and y and it is
denoted by x×y (read as "x cross y"). It is important to remember that, while x and y are a set of
numbers, the Cartesians Product turns out to be a set of ordered pairs. By enumeration, or by
description, we may express this Cartesian product alternatively as

*( )( )( )( )+ (3.1)

*( )| + (3.2)

The latest expression at (3.2) may be taken as the general definition of Cartesian Product for any
given set x and y.

To widen our horizon, let us now both include all real numbers in x and. Then the resulting Cartesian
product

*( )| + (3.3.)

We will present now the real numbers with real-valued elements. Asides from that each ordered
pairs in the Cartesian Plane denote a unique point as you can see in figure 2.4, each point in the
Cartesian plane correspond unique ordered pairs in the set x×y. Given this, we call it one-to-one
correspondence is said to exist between the set of ordered pairs in the Cartesians product (3.3) and
all the set points in the rectangular coordinate plane. Now it is easier for us to perceive the ordered
pairs and sets of ordered pairs.

Extending the idea, we may define Cartesian Product of three sets x,y, and z as follows:

* | + (3.4)

(3.4) is as a set of ordered triple. Furthermore, if the x, y, and z each consist of the real numbers in
the Cartesian products it will correspond to the set of all points in a three-dimensional space. This is

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 denoted by ×R×R , or more simply R^3. In our present discussion, all the variables are taken from
real-valued thus our framework be R^2, or R^3…, or R^n

RELATIONS AND FUNCTIONS

Since any ordered pair associates a y value with an x value, any collections of ordered pairs—any subset of
the Cartesian product (2.3) – will constitute a relation between y and x. Given an x value, one or more y
values will be specified by that relation. For convenience, we shall now write the elements of
generally as (x, y) – rather than as(a, b), as was done in (2.3)—where both x and y variables.

Example 3
The set {(x,y)│y=2x} is a set of ordered pairs including for example, (1,2),(0,0), and(-1,-2). It constitutes a
relation, and its graphical counterpart is the set of points lying on the straight line y=2x, as seen in figure
2.5

Example 4
The set{(x,y)│y≤x}, which consists of such
ordered pairs as(1,0),(1,1) and (1,-4), constitutes
another relation. In fig 2.5 this set corresponds to
the set of all points in the shaded area which
satisfies the inequality y≤x.

Observe that, when the x values are given, it may

not always be possible to determine a unique y
value from relation. In example 4, the three
exemplary ordered pairs show that if x=1, y can
take various values, such as 0,1, or -4, and yet in
each case satisfy the stated relation.

Graphically, two or more points of a relation may

fall on a single vertical line in the xy plane. This is
exemplified in figure 2.5, where many points in
the shaded area (representing the relation y≤x)
fail on the broken vertical line labeled x=a.

As a special case, however, a relation may be such that for each value there exists only one
corresponding value. The relation in example 3 is a case in point. In such a case, is said to be a
function of , and this is denoted by ( ), which is read as .‖
, ( ) -. A function is therefore a set of ordered pairs with the property that
any value uniquely determines a value. It should be clear that a function must be a relation, but a
relationship may not be a function.

Although the definition of functions

stipulates a unique for each and only
one value of , the opposite is not
required. In other words, more than one
value may legitimately be associated
with the same value of . This possibility
is illustrated in figure 2.6, where the
values and in the set are both
associated with the same value ( ) in
the set by the function ( ).

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 A function is also called a mapping or transformation; both words connote the action of associating one
thing with another. In the statement ( ) the functional notation ( ) may thus be interpreted as a rule
by which the set is ―mapped‖ (‖transformed‖) into the set . Thus we can write

Where the arrow indicates mapping and the letter indicates mapping. Since indicates a rule of mapping,
a different functional notation must be employed to denote another function that may appear in the same
model.

The customary symbols besides used for mathematical modeling are the Greek letter (phi) and
(psi), and their capital letter and .

For instance, two variables and may be both a function of , but if one function is written as ( ),
the other should be written as ( ) or ( ). It is possible, however, to write ( ) and
( ) thereby dispensing with the symbols and altogether.

In the function ( ) is referred to as the argument of the function, and is called the value of the
function. in economics study, we sometimes refer as the independent variable and as the dependent
variable

As illustrated in figure 2.7a we may regard the function as a rule of mapping for each point on some line
segment (the domain) into some point on another line segment (the range). By placing the domain in the
and the range as the as illustrated in figure 2.7b,

with figure 2.7b, we immediately obtain the familiar two-dimensional graph in which the association
between and values is specified by a set of ordered pairs such as ( ) and ( )

In an economic model, behavioral equations are usually presented as functions. Since most variables in
economics are by nature are restricted to nonnegative real numbers, their domain is also restricted. That is
why most of the economic models or graphs are drawn in the first quadrant only. In general, we shall not
bother to specify the domain of every function in every economic model. when no specification is given, it is
to be understood that the domain (and the range) will only include numbers for which a function makes
economic sense.

FIGURE 2.7

Example 4

The total cost C of a firm per day is a function of its daily output Q: C = 150+7Q. The firm has a capacity
limit of 100 units of output per day. What are the domain and the range of the cost function? Since Q can
vary only between 0 and 100, the domain is the set of values 0 ; or more formally,

Domain * | +

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 As for the range, since the function plots as a straight line, with the minimum C value at 150 (when Q=0)
and the maximum C value at 850 (when Q=100), we have

Range * | +

Beware, however, that the extreme values of the range may not always occur where the extreme values of
the domain are attained.

EXAMPLE

Graph the function given the domain is

x -5 -4 -3 -2 -1
y 18 16 14 12 10

A solution to each value of y:

If x = -5, then ;
( )

You will observe the same process in solving all values of y. try to solve the remaining y’s value at your own
pace. I already provided you one example. (as you see the graph below it is a graph in quadrant II of the
coordinate plane.

Quadrant II
Y
20
18
16
14
12
10
8
6
4
2
x 0
-6 -5 -4 -3 -2 -1 0

TYPES OF FUNCTION

The expression y=f(x) is a general statement of mapping that is possible in a given equation, but the actual
rule of mapping is not made explicitly. Hence let us consider several specific types of function, each
representing a different rule of mapping.

1. Constant Functions

A constant function is a function whose range consists of only one element. For example,

( )

Which also expressed as or ( ) , whose values stay the same regardless of the value of x.
in the Cartesian Plane, the constant function appears as a horizontal line. In the national-income
model, when investment is exogenously or independently determined, we may have an investment
function of the form million, or , which exemplifies the constant function.

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 2. Polynomial Functions

A polynomial function is a degeneration case of constant function. the world ―polynomial” mean
―multiterm‖, and a polynomial function of a single variable has the general form

(2.4)

In which each term contains a coefficient as well as a nonnegative integer power of the variable . (As
explained later in the lesson we can write and in general; the first two terms may be
taken to be and respectively. Please remember that instead of the symbols we have
employed the subscription symbol for the coefficients. It is used because (1) we can
economize on symbols since only the letter is used, (2) the subscription helps us to pinpoint the
location of a particular coefficient in the equation. for instance in 2.4 is the coefficient of and so
forth.

Depending on the value of the integers (which specifies the highest power of ). We have several
subclasses of polynomial functions:

Case of , -

Case of , -

Case of : , -

Case of , -

And so forth. The superscript indicators of the power of are called exponents. The highest power of
involved i.e. indicates the degree of polynomial functions. If that is a constant function, if
it is a linear function, and so forth as you see above illustration. The order in which the term appears on
the equation is not important, but for simplicity of discussion, it is ordered in descending order as
presented above. Even though we write on the left it is also acceptable to write ( ) in the place of

When plotted in a coordinate plane/Cartesian plane, a linear function will appear as a straight line as
you see in figure 2.8 . when , the yield of the linear function , thus the ordered pair ( )s
on the line. This is what we called the (or vertical intercept) because it is a point that the
vertical axis intersects the line. The other coefficient , measures the slope ( the steepness of incline)
of our line. It means that a unit increase in will lead to an increase in in the amount of . What
figures 2.8 show is that in the case of involves a positive slope and thus an upward sloping of
the line; if , this line is a downward sloping of the line.

A quadratic equation, on the other hand, plots in a coordinate plane as a parabola—roughly a curve
with a single built-in bump or wiggle. Figure 2.8b shows an example of a parabola. 2.8b implies a
negative ; in the case , the curve will ―open‖ the other way, displaying a valley rather than a
hill. As you can see in figure 2.8c illustrates a cubic function whose manifest a two wiggle. These
models are commonly used in economic modeling most of the time, the linear function, quadratic and
cubic function.

3. Rational Functions

A function

Is an example of a rational function in which is expressed as a ratio of two polynomial functions.

according to the definition, any polynomial function must itself be a rational function, because it can
always be expressed as a ratio to 1 to 1 as a constant function.

A special rational function that has interesting applications in economics is the function

or

Which are plotted as a rectangular hyperbola as in figure 2.8d. since the two variable, in this case, is
always constant it can be used to represent the special demand curve with price and quantity

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 demand on the two axes in which the total expenditure is constant at all levels of price. (such a
demand curve is the one with unitary elasticity of the point on the curve). Another application is to the
average fixed costs (AFC) with AFC on one axis and output on the other, the AFC curve must be
rectangular hyperbolic because AFC ( ) is a fixed constant.

The rectangular hyperbola drawn from never meets the axes of y or x if extended indefinitely
upward or to the right. Rather, the curve approaches the axes asymptomatically; as becomes larger,
will come closer to the axis but never actually or touch the line of the axis of both x and y-axis. This
property is what we called asymptotes

Figure 2.8

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 4. Non-algebraic Functions

Any functions that are expressed in polynomial such as square root are considered as algebraic
expressions. However exponential functions such as in which independent variables are
expressed as exponents. This kind of expression is called non-algebraic expression. An example of
this is logarithmic functions, such as .

These two types of functions (exponential and logarithmic functions) have a special role to play in
studying mathematical economic modeling but we will not discuss it further for the sake of the simplicity
of this subject.

DIFFERENCE BETWEEN RELATION AND FUNCTION

Check the image below, analyze it, and learn how can you easily identify either an equation is a relation or
a function. If you read thoroughly the lecture above relation and function I am pretty sure you have already
some idea about it.

Sa tagalog, masasabi natin na Function ang isang relation kapag or dapat ang x-value ay isang beses lang siya
gagamitin sa bawat value of y. Hindi pwedeng dalawang beses na magagamit ang x-value sa equation with
corresponding different or the same value of y.

In economics, ang input value (x-value) ay isang beses mo lang pwedeng gamitin sa pag construct ng production
output(y-value). Hindi pwedeng ulitin ang input value kasi nga nagamit mo na siya sa pagproduce ng output.

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 Here is another example of identifying relation and function using graphs.. analyze it properly and learn
from it…

A DISGRESSION ON EXPONENTS

In discussion polynomial functions, we introduced the term exponents as indicators of the power to which
variables (or numbers) are to be raised. The expressions means that 6 is to be raised to the second
power that is, 6 is multiplied by itself or , in general, we define, for a positive integers ,

And as a special case, we noted that From the general definition, it follows that for positive integers
and , exponents obey the following rules.

Rules I ( for example, )

Rules II ( ) . /

what if say and ? In that case, we get, according to rule II, , the negative
power of . What does this mean? The answer is supplied by rule II itself; when and , we have

Hence, and this may be generalized into another rule:

Rule III ( )

To raise a (nonzero) number to a power of a nonnegative is to take the reciprocal of its nth power.

Another special case in the application of rule II is when , which yields the expressions
. To interpret the meaning of raising a number to the zeroth power, we can write out the term
by rule II, with the result that ⁄ . Thus we may include that any nonzero number raised to the
zeroth power is equal to 1. (the expression is undefined). This may be expressed into another rule.

Rule IV ( )

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 As long as we focus on polynomial functions nonnegative power is only required. In exponential functions,
however, the exponent is a variable that can take non-integers values as well. To interpret a number such
as , let us consider the fact rule I, we have

Rule V

Two other rules obeyed by exponents are

Rule VI ( )

Rule VII ( )

SELF-ASSESMENT ACTIVITY (SAA)

1. Graph the function considering the domain as consisting of a nonnegative real integer
only such domain = * | +.
2. Condense the following expressions
a.
b.
c.

1.

IV. Summary/Key
Points

1. In writing a set {a,b} we do not care about the order of the element a and b appears, because by
definition{a,b}= {b, a}, this kind of set or pair is unordered pair.
2. When the ordering of a and b does not carry a significance, however, we can write two different ordered
pairs denote by (a,b) and (b, a), which have the property that (a,b) ≠ (b, a), when this property is
observed it is called ordered pair.
3. In the function y=f(x),x is referred to as the argument of the function, and y is called the value of the
function. in economics study, we sometimes refer to x as the independent variable and y as the
dependent variable
4. There are four types of function and these are the constant, polynomial, and non-algebraic functions.
5. In polynomial functions, we introduced the term exponents as indicators of the power to which variables
(or numbers) is to be raised, and there are seven rules of exponent of an operation

V. End of Module
Assessment (EMA)

Instruction: Answer the following question below. Please observe correct sentences and clean
handwriting! (graded) 10 points

1. Differentiate relation from function. You can illustrate sample graphs or equations to support
your explanation.

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 Rubric for EMA

VI. Looking Ahead

Next Module we will discuss relations and functions, relations and functions, types of functions, and many
other.

1. The meaning of equilibrium

2. Partial market equilibrium—a linear model
3. Partial market equilibrium—a nonlinear model

VII. Self and Module

Evaluation

Rate your learning experience in using this module according to the following scale.

Put a checkmark on your response.

 4 – I learned a lot from this module.

 3 – I learned just right.
 2 – I still need guidance on certain topics.
 1 – I did not understand anything.

VIII. References

Chiang A. C. & Wainwright K. (2005). Fundamental Methods of Mathematical Economics. Fourth

Edition. Singapore. McGraw-Hill Education.

https://slidetodoc.com/presentation_image_h/a8a8dfbf3c360451bce5f7ae97a6e02f/image-5.jpg

https://qph.fs.quoracdn.net/main-qimg-e3a96b34d4efb7697e9df129dd7929df.webp

http://img.sparknotes.com/figures/4/4d7924c96427a340a0f1be4c7e650f7c/rel1.gif

***End of Module 03***

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 IX. Answer Keys

MODULE 02

SAA NO. 2
Given the sets * + and * +, find :
Answer:

* + * +
* +

Given the sets, * + and * +, find

Answer:

* + * +
* +

The complement of ́ is ? Is the statement valid or not?

Answer: valid

EMA NO. 2

1. Given * +, * +, and * +. Verify the distributive law.

( ) * + (* + * +)

* + * +

* +

( ) ( ) (* + * +) (* + * +)

* + * +

* +

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