ECON111:

Mathematics for Economics and Business

(Linear Functions (1/2))

Yigit Oezcelik

Yigit.Oezcelik@liverpool.ac.uk
Management School (ULMS)

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Outline

We revise linear functions and simple linear equation systems:

General form of a linear function
Graphs of linear functions
Solutions to linear equation systems
Reading: Renshaw Chapter 3

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 Linear functions

Linear functions

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 Linear functions Introduction to functions

Linear Functions (1/2)

Let x and y denote elements from two different sets or variables.

A function may be understood as a rule that defines some
relation between x and y.
The relation is typically denoted as
y = f (x),
which says y is a function of x.
A dependent variable, typically denoted by y, is a variable whose
value depends on whatever value the argument x takes.
An independent variable, typically denoted by x, is a variable
that ’drives’ y.

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 Linear functions Introduction to functions

Linear Functions (2/2)

We could also regard x as some input and y the output produced
by the function f.
A linear function arises when functional form f(x) is linear in x.
A general linear function can be represented as
y = f(x) = mx + c,
y is the dependent or output variable, and x is the independent
or input variable or the argument,
m is the slope parameter, and
c is the intercept parameter.
The slope of a linear line can be calculated as the ratio of the
change in y to the change in x, i.e. m = xy22 −y
−x1
1
where (x1 , y1 )
and (x2 , y2 ) are two points on the linear line.
When x = 0 ,the value of y is (= c) is called the y intercept.
When y = 0 ,the value of x (= -c/m) is called the x intercept.
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 Linear functions Graph of a linear function

Graph of linear Functions (1/5)

Any general linear function, y = mx + c, corresponds to a

straight line on graph:
m > 0 =⇒ the line has a positive/upward slope.
m < 0 =⇒ the line has a negative/downward slope.
m = 0 =⇒ y = c =⇒ the line has a zero slope, i.e. flat.
c > 0 =⇒ the line intersects the positive part of the y axis.
c < 0 =⇒ the line intersects the negative part of the y axis.
c = 0 =⇒ the line passes the origin.
Any linear line goes through the y intercept (0, c), and the x
intercept (-c/m,0).

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 Linear functions Graph of a linear function

Graph of linear Functions (2/5)

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 Linear functions Graph of a linear function

Graph of linear Functions (3/5)

Example: Sketch the line 2x + y = 5.

Solution: Rewrite the expression in general linear function form
y = 5 - 2x. Comparing to y = mx + c, we observe the slope as
m = -2 and the y intercept as c = 5, respectively.
The x intercept is found by
0 = 5 – 2 x =⇒ 2x = 5 =⇒ x = 2.5.
The y intercept (0, 5) and x intercept (2.5, 0) lie on this linear
line. Therefore, we identify these two points on the x and y axes
and join them up to yield the sketch of 2x + y = 5.
If we know the exact linear function expression, we find the y
intercept and x intercept points.
Then we connect the two points to sketch the linear line.

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 Linear functions Graph of a linear function

Graph of linear Functions (4/5)

2x + y = 5 sketched, looks like:

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 Linear functions Graph of a linear function

Graph of linear Functions (5/5)

Question: Find the equation of the straight line that goes
through two points (1, 2) and (3, 8).
Solution:
−y1
To find m: m = xy22 −x 1
8−2
= 3−1 =3
We know y = 3x + c.
To find c, insert one of the points into the linear equation.
Let’s use (1,2), where the first number is x and second number
is y.
This gives 2 = 3 · 1 + c =⇒ c = -1.
Hence, we get y = 3x - 1.
To test if your equation is correct, you can insert other point
(3,8).
Using x = 3, must yield y = 8: y = 3 · 3 -1 = 8.
Our derived linear function satisfies this.
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 Linear equation systems

Linear equation systems

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 Linear equation systems Solving two linear equations

Solving two linear equations (1/3)

A system of two linear equations with two variables x and y can

be expressed as
a1 x + b 1 y = c 1

a2 x + b 2 y = c 2

where a1 , a2 , b1 , b2 , c1 , c2 are known constants.

How to solve for x and y that satisfy both equations?
The following slides show two methods via an example.
This can be applied to our supply and demand analysis later.

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 Linear equation systems Solving two linear equations

Solving two linear equations (2/3)

Example: Solve the two linear equations
y = x + 2 (Equation 1)

y = 2x − 5 (Equation 2)

Solution 1 (by Elimination): Eliminate either the x or the y

term: Eliminate y by subtracting Eq. 2 from Eq.1

y − y = (x + 2) − (2x − 5)

0 = −x + 7 =⇒ x = 7.

Now use x = 7 to find y.

Insert x =7 into Eq.1 or Eq.2: y = 7 + 2 = 9 or 2 · 7 - 5 = 9.
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 Linear equation systems Solving two linear equations

Solving two linear equations (3/3)

Solution 2 (by Equivalence): We can also find x and y by
making both equations equal to each other as both are expressed
in terms of y (both equations are equivalent expressions of y)
y = x + 2 y = 2x − 5

y=y

x + 2 = 2x − 5

2 + 5 = 2x − x =⇒ x = 7

Now use x = 7 to find y.

Insert x =7 into Eq.1 or Eq.2: y = 7 + 2 = 9 or 2 · 7 - 5 = 9.
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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (1/7)

Now, we consider solutions to a system of two linear equations.

A system of two linear equations can be plotted as two linear
lines on the same graph.
The intersection points of the two lines correspond to the
solutions to the system.
Solutions to the linear system satisfy conditions in both
equations.
Graphically, solutions to the linear system are the points lying on
both linear lines.
Not all systems of equations can be uniquely solved. We
summarise all the three scenarios on the following slides.

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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (2/7)

1.) A unique pair of solutions exists if
the two equations, expressed in the general linear equation form,
have different slopes, or graphically
the two linear lines, representing the two linear equations,
intersect each other at one and only one point.
The unique solution is the intersection point on graph.
Example: Sketch the two linear equations on the same graph and
indicate the solution to this system:
2x + y = 5 and 4x + 3y = 11
Solution: First rewrite these two equations as general linear
functions as y = −2x + 5 and y = − 43 x + 113
.
Then, these two equations can be sketched where the solution is the
intersection point of the two linear lines.
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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (3/7)

Different slope parameters, when written in general linear function
form.

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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (4/7)

2.) No solutions to the system exist if
the two equations, in the general linear equation form, have
identical slopes but different intercepts, or graphically
the two linear lines are parallel but are not overlapping.
The two linear lines do not intersect.
Example: Sketch the two linear equations on the same graph and
comment on the solution to this system:
−0.5x + y = 1 and 2x − 4y = 4

Solution: Following similar steps in the above example, we can

express both equations in the general form as y = 0.5x + 1 and y =
0.5x - 1, respectively. Plot the two linear lines on the graph on the
next slide.
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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (5/7)

The two linear lines are parallel but do not overlap, so there are no
intersection points of the two lines and hence there are no solutions
to this system.

The two equations have identical slopes but different intercepts,

when they are written in general linear function form.
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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (6/7)

3.) Infinite number of solutions to the system exist if
the two equations, expressed in the general linear equation form,
have identical slopes and identical intercepts, or graphically
the two linear lines, representing the two linear equations, are
overlapping.
The two linear lines intersect infinitely many times.
Example: Sketch the two linear equations on the same graph and
comment on the solution to this system:
−0.5x + y = 1 and x − 2y = −2.

Solution: Following similar steps in the above example, we can

express both equations in the general form as y = 0.5x + 1 and y =
0.5x + 1, respectively.
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 Linear equation systems Solving two linear equations

Linear System Graphs and Solutions (7/7)

The two equations are equivalent: they have identical slopes and
intercepts, when expressed in the general linear function form. The
two linear lines are completely overlapping each other in the graph
below. There are infinite intersection points of the two lines and
hence there are infinite solutions to this system.

The two equations have identical slopes and identical intercepts,

when they are written in general linear function form.
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 Linear equation systems

Exit tickets

Please use following link to access PollEverywhere to answer the

questions below: https://PollEv.com/yigit
How hard was today’s lecture?

Think of an example of how you can apply toady’s acquired

knowledge to economics ?

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 Linear equation systems

Thank you!
Do you have any questions?
Yigit.Oezcelik@liverpool.ac.uk

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