LOGARITHMIC

FUNCTION
MATHEMATICS FOR ECONOMICS
 TABLE OF CONTENTS
LOGARITHMIC TYPES OF
LOGARITHMIC
01 FUNCTION 03 FUNCTION
DEFINITION
05 EXAMPLES

LOGARITHMIC GENERAL
EQUATION OF
02 FUNCTION 04 LOGARITHMIC
EQUATION
FUNCTION
 01
LOGARITHMIC
FUNCTION
DEFINITION
 LOGARITHMIC FUNCTION
DEFINITION

 Logarithmic functions are the inverses of exponential

functions.
 The inverse of the exponential function y=ax is x=ay.
 The logarithmic function y = alogx is defined to be
equivalent to the exponential equation x = a y.
 10log 100 = 2
 102 = 100
02
LOGARITHMIC
FUNCTION
EQUATION
 LOGARITHMIC FUNCTION
EQUATION

 y = nlogx
 where n>0 and n≠1
 The curve is on quadrant I and IV.
03
TYPES OF
LOGARITHMIC
FUNCTION
CURVE
 TYPES OF LOGARITHMIC
FUNCTION CURVE
Y
When 0 < n < 1,
the curve y = nlogx
move down from
left to the right and (1,0)
X
0
asymptotic to y-
axis and intersect
x-axis on (1,0) n=0.3
point. n=0.6
n=0.8
 TYPES OF LOGARITHMIC
FUNCTION CURVE
Y n=7
When n > 1, the n=2
n=9

curve y = nlogx
move down from
left to the right and (1,0)
X
0
asymptotic to y-
axis and intersect
x-axis on (1,0)
point.
04
GENERAL
EQUATION OF
LOGARITHMIC
FUNCTION
 GENERAL EQUATION OF
LOGARITHMIC FUNCTION
• y = a ln (1 + x) + b
• Where x > -1
• The curve is on the right and asymptotic to the line x = -1
• The intersection with x-axis is:  y = 0
• a ln (1 + x) = -b e(b/a) – 1 > 0 if b/a < 0

• ln (1 + x) = -b/a e-(b/a) – 1 = 0 if b/a = 0

(1 + x) = e–b/a e(b/a) – 1 < 0 if b/a > 0
x = e–b/a – 1
 GENERAL EQUATION OF
LOGARITHMIC FUNCTION
•So, e-(b/a) – 1 > 0 •So, e-(b/a) – 1 > 0
•If a > 0, b > 0 •If a < 0, b < 0
y y
x=-1

(0,b)

x=-1
(e-(b/a) – 1,0)

x x
0 0
(0,-b)
(e-(b/a) – 1,0)
 GENERAL EQUATION OF
LOGARITHMIC FUNCTION
•So, e-(b/a) – 1 < 0 •So, e-(b/a) – 1 < 0
•If a > 0, b < 0 •If a < 0, b > 0
y y

x=-1
x
0
(e-(b/a) – 1,0)
(e-(b/a) – 1,0)
(0,-b) (0,b)
x=-1

0
x
 EXAMPLES
• Determine the intersection point of logarithmic function
y=2ln(1+x)+6 on each axis and calculate f(4)!
• Answer:
• For y=0  2ln(1+x)+6= 0
2ln(1+x) = -6
ln(1+x) = -3
(1+x) = e-3
(1+x) = 0,0498
x = -0.9502
The intersection with x-axis is (-0.9502,0)
 EXAMPLES y

• Answer: (4,9.2188)
• For x=0  y =2ln(1+x)+6 (0,6)
y =2ln(1+0)+6

x=-1
y =2ln1+6
y =6
The intersection with y-axis is (0,6) (-0.9502,0) 0 x
f(4)  x=4  y = 2ln(1+x)+6
y = 2ln(1+4)+6
y = 2ln5+ 6
y = 2(1.6094)+6
y = 9.2188
 EXAMPLES
• Determine the intersection point of logarithmic function
y=-0.25ln(1+x)+0.75 on each axis and calculate f(4)!
• Answer:
• For y=0  -0.25ln(1+x)+0.75= 0
-0.25ln(1+x) = -0.75
ln(1+x) =3
1+x = e3
1+x = 20.0855
x = 19.0855
The intersection with x-axis is (19.0855,0)
 EXAMPLES
• For x=0  y= -0.25ln(1+x)+0.75
y

y= -0.25ln(1+0)+0.75
y= 0.75
The intersection with y-axis is (0,0.75)
f(4) y =-0.25ln(1+x)+0.75
y=-0.25ln(1+4)+0.75

X=-1
y=-0.25ln5+0.75 (0,0.75)
y=-0.25(1.6094)+0.75 (4,0.3476)
y=-0.4023+0.75 x
y=0.3476 0
(19.0855,0)
THANK
YOU