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Reading Notes

Economics Dr. Sauer

Chapter 4: Non-Linear Functions 4.1 Quadratic, Cubic and Other Polynomial Functions Commonly, the Total Revenue function has a shape of: Commonly, the Total Cost function has a shape of:

4.1.1 Solving a Quadratic Equation When the quadratic takes the form of

, then its solution is given by:

There are 3 possible types of solutions to a quadratic equation: 4.1.2 Graphs of Quadratic Functions These are represented graphically as follows: -

When sketching the graph of a quadratic equation, To find the vertical axis intercept: To find the horizontal axis intercept(s):

4.1.3 Quadratic Functions in Economics Supply and Demand:

Total Revenue for a Monopolist:

4.1.4 Cubic Functions The general expression for a cubic function is:

What is the general formula used to solve a cubic function?

What are the general properties of cubic equations?

4.2 Exponential Functions 4.2.1 Definition and Graphs The general form of the exponential function is: The number e The letter e represents what? The value of e taken to 4 decimal points is __________________. Graphs of exponential functions Re-create the graphs from figure 4.16 here.

Properties of exponential functions - all curves are _______________________ and pass through the points x = ___ and y = ___. - when the index is positive and the base is greater than 1, the curves are ________________ as x increases and are called growth curves - when the index is negative and the base is greater than 1, the curves are _______________ as x increases and are called decay curves - exponentials with larger bases increase ___________________ for x > 0 and decrease ____________ _________ for x < 0. - the graphs for y = ax and y = a-x are always _____________ the x-axis, therefore the value of y is always _________________ -the graphs for y = -ax and y = -a-x are always _____________ the x-axis, therefore the value of y is always _________________ -the x-axis is a _______________________ asymptote Rules for using exponential functions 2

4.2.2 Solving Exponential Equations Well work through in class. 4.2.3 Applications Unlimited Growth

Limited Growth

Logistic Growth

4.3 Logarithmic Functions 4.3.1 The Log of a Number What is the method for finding the log of a number?

The 3 general steps for using logs to solve exponential equations are: 4.3.2 Graphs and properties of logarithmic functions - there are no logs of ____________________ numbers - logs of numbers between 0 and 1 are _______________ - logs of numbers greater than 1 are _______________ - log (1) = ___ for any base - the graph of ln (x) increases and decreases faster than log (x) 4.3.3 Rules for logs How to add logs: How to subtract logs: How to take the log of an exponential: How to change the base: 4.3.4 Solving Equations Well cover in class. 3

4.4 Hyperbolic Functions of the Form a/(bx + c) The main features of this type of function are: - the graph has a ___________________ asymptote at the value of x that results in division by ____ - the x-axis is a __________________ asymptote - the graph has no _________________________________________ values - the curve ______________________ smoothly at an increasing rate or ___________________ smoothly at a decreasing rate 4.5 Excel Skip this section.

4.6 Summary After we work through this chapter in class, review this section and write any notes here.