Chapter 3. Calculus
Chapter 3. Calculus
Calculus
Contents
•Definition
•Evaluation of Limits
•Continuity
y = f ( x)
L
a
Limits, Graphs, and Calculators
x −1
1. a) Use table of values to guess the value of lim 2 ÷
x →1 x − 1
x −1
b) Use your calculator to draw the graph f ( x) = 2
x −1
and confirm your guess in a)
2. Find the following limits
sin x
a) lim ÷ by considering the values
x →0
x
x = ±1, ±0.5, ±0.1, ±0.05, ±0.001. Thus the limit is 1.
sin x
Confirm this by ploting the graph of f ( x) =
x
( x ) by considering the values
b) lim sin π
x →0
(i) x = ±1, ± 1 , ± 1 , ±1
10 100 1000
(ii) x = ±1, ± 2 , ± 2 , ±2
3 103 1003
This shows the limit does not exist.
( x)
Confrim this by ploting the graph of f ( x) = sin π
−3x if x ≠ −2
c) Find lim f ( x) where f ( x) =
x →−2
1 if x = −2
lim f ( x) = lim − 3 x
x →−2 x →−2
6 = −3 lim x
x →−2
is not involved
-2
3) Use your calculator to evaluate the limits
4( x 2 − 4) Answer : 16
a. lim ÷
x→2
x − 2
L+ε
L
L −ε
y = f ( x)
a
a −δ a +δ
This means that if we are given a
small interval ( L − ε , L + ε ) centered at L,
then we can find a (small) interval ( a − δ , a + δ )
f ( x) is in ( L − ε , L + ε ).
Examples
1
And so <2.
x
1 1
Thus | − 1|= | x − 1|< 2 | x − 1| .
x x
ε 1
Now we choose δ = min , .
3 2
One-Sided Limit
a
The left-hand limit of f (x), as x approaches a,
equals M
written: lim− f ( x) = M
x→a
M
a
Examples
x 2 if x ≤ 3
1. Given f ( x) =
2x if x > 3
Find lim+ f ( x)
x →3
lim+ f ( x) = lim+ 2 x = 6
x →3 x →3
Find lim− f ( x)
x →3
lim− f ( x) = lim− x 2 = 9
x →3 x →3
More Examples
x + 1, if x > 0
2. Let f ( x) =
x − 1, if x ≤ 0. Find the limits:
a) lim+ f ( x) = lim+ ( x + 1)
x →0
= 0 +1 = 1
x →0
b) lim− f ( x) = lim− ( x − 1) = 0 − 1 = −1
x →0 x →0
c) lim− f ( x) = lim(
−
x + 1) = 1 + 1 = 2
x →1 x →1
But
lim f ( x) = 2 because lim+ f ( x) = 2 and lim− f ( x) = 2.
x →1 x →1 x →1
Limit Theorems
a) lim ( f ( x) + g ( x) ) = L + M b) lim ( f ( x) − g ( x) ) = L − M
x→a x→a
c) lim ( f ( x) ×g ( x) ) = L ×M
x→a
d)
x→a (
lim f ( x)
g ( x) ) = L , ( M ≠ 0)
M
e) lim ( c ×f ( x) ) = c ×L f) lim ( f ( x) ) = Ln
n
x→a
x →a
g) lim c = c h) lim x = a
x →a x →a
( )
2
= lim x + lim1
x →3 x →3
= 32 + 1 = 10
2 −1 1
= =
3+5 8
More Examples
1. Suppose lim f ( x) = 4 and lim g ( x) = −2. Find
x →3 x →3
a) lim ( f ( x) + g ( x) ) = lim
x →3
f ( x) + lim g ( x)
x →3
x →3
= 4 + (−2) = 2
= 4 − (−2) = 6
2 f ( x) − g ( x) lim 2 f ( x) − lim g ( x) 2 ×4 − (−2) −5
c) lim ÷ = x →3 x →3
= =
x →3
f ( x) g ( x) lim f ( x) × lim g ( x) 4 ×(−2) 4
x →3 x →3
Indeterminate Forms
4 − x2 (2 − x)(2 + x)
b) lim 2 ÷ = lim
x →−2 2 x + x 3
x →−2 x 2 (2 + x) ÷
2− x
= lim 2 ÷
x →−2
x
2 − (−2) 4
= = =1
(−2) 2
4
The Squeezing Theorem
If f ( x) ≤ g ( x) ≤ h( x) when x is near a, and if
lim f ( x) = lim h( x) = L, then lim g ( x) = L
x→a x →a x →a
( x ) = 0.
lim x 2 sin π
x →0
Continuity
f(a)
a
A function f is continuous at the point x = a if
the following are true:
i ) f (a) is defined
ii ) lim f ( x) exists
x →a
iii ) lim f ( x) = f (a )
x→a f(a)
a
Examples At which value(s) of x is the given function
discontinuous?
2
1. f ( x) = x + 2 x −9
2. g ( x) =
x+3
Continuous everywhere
Continuous everywhere
lim( x + 2) = a + 2
x →a
except atx = −3
6 2
4 -6 -4 -2 2 4
-2
2
-4
-6
-4 -2 2 4
-2 -8
-10
x + 2, if x > 1 −1, if x ≤ 0
3. h( x) = 4. F ( x) =
1, if x ≤ 1 1, if x > 0
and
lim+ F ( x) = 1 lim F ( x) = −1
lim− h( x ) = 1
x →1
and lim+ h( x)
x →1
=3 x →0 x → 0−
3
4
3 2
2
1
-10 -5 5 10
-2 2 4
-1
-1
-2
-2
-3 -3
Continuous Functions
y = f ( x)
f (b)
f (c) = L
f (a)
a c b
Example
2
Given f ( x) = 3 x − 2 x − 5,
Show that f ( x) = 0 has a solution on [ 1, 2 ] .
f (1) = −4 < 0
f (2) = 3 > 0
1 1
For all n > 0, lim n = lim n = 0
x →∞ x x →−∞ x
1
provided that n is defined.
x
2 3 + 5 + 1
3x + 5 x + 1 x x 2 Divide
Ex. xlim = lim 2
→∞ 2 − 4x 2 x →∞ 2 −4 by x
x2
=
lim 3 + lim 5
x →∞ x →∞
( x ) + lim ( 1 x )
x →∞
2
=
3+ 0+ 0
=−
3
lim 2
x →∞
( x ) − lim 4
2
x →∞
0−4 4
More Examples
2 x3 3x 2 2
2 x3 − 3x 2 + 2 3
− 3 + 3 ÷
1. lim 3 ÷ = lim x x x ÷
x − x − 100 x + 1
x →∞ 2
x →∞ x 3 2
− − 100 x + 1
x ÷
3 ÷
x x 3
x 3
x 3
3 2
2 − x + x3 ÷
= lim ÷
x →∞ 1 100
1− − 2 + 3 ÷1
x x x
2
= =2
1
4 x − 5 x + 21
2 x2 + 2x − 4
2. lim 3 ÷ 3. lim ÷
x →∞ 7 x + 5 x 2 − 10 x + 1 x →∞
12 x + 31
x2 2 x 4
4 x 2 5 x 21
− 3+ 3
+ − ÷
x 3
x x
÷ = lim x x x÷
= lim 3 2 ÷ x →∞
12 x + 31 ÷
x →∞ 7 x 5 x 10 x 1
÷ x x ÷
3 + 3 − 3 + 3÷
x x x x
4 5 21 4
x+2− x ÷
− +
x x 2 x3 ÷
= lim ÷
x →∞ 5 10 1
7+ − 2 + 3 ÷ = lim ÷
x →∞ 31
x x x 12 + ÷
0 x
= ∞+2
7 =
12
=0 =∞
4. lim
x →∞
( x +1 − x
2
)
= lim
( x2 + 1 − x ) x +1 + x ÷
2
1 ÷
x →∞
x2 + 1 + x ÷
x2 + 1 − x2
= lim ÷
x →∞
x +1 + x
2
1
= lim ÷
x →∞
x +1 + x
2
1 1
= = =0
∞+∞ ∞
Infinite Limits
20
10
1 5
lim+ =∞
( x − a)
n -8 -6 -4 -2 2
x →a -5
-10
-15
-20
40
1
30
lim− = ∞ if n is even 20
( x − a)
n
x →a 10
-2 2 4 6
-10
-20
1 20
lim− = −∞ if n is odd 15
( x − a)
n
x →a 10
-8 -6 -4 -2 2
-5
-10
-15
Examples
Find the limits
3x 2 + 2 x + 1 3+ 2 + 1 2 3+ ∞ + ∞
1. lim+ ÷ = lim+
x x ÷ = =∞
x →0 2x 2 x →0
2 ÷
÷ 2
2x +1
2. lim + ÷ = lim
2x +1
x →−3 2 x + 6 x →−3+ 2( x + 3) ÷
= −∞
40
20
-8 -6 -4 -2 2
-20
3.2. Derivatives
37
Value of a Derivative at a Point
• The evaluation of the derivative at the point
q = q1 can be denoted
dπ
dq q = q
1
dπ dπ dπ
>0 <0 =0
dq q =q
1
dq q =q
3
dq q = q *
38
Rules for Finding Derivatives
db
1. If b is a constant, then =0
dx
d [bf ( x )]
2. If b is a constant, then = bf ' ( x )
dx
dx b
3. If b is constant, then = bx b −1
dx
d ln x 1
4. =
dx x 39
Rules for Finding Derivatives
x
da
5. = a x ln a for any constant a
dx
– a special case of this rule is dex/dx = ex
40
Rules for Finding Derivatives
• Suppose that f(x) and g(x) are two functions
of x and f’(x) and g’(x) exist
• Then
d [f ( x ) + g ( x )]
6. = f '(x) + g'(x)
dx
d [f ( x ) ⋅ g ( x )]
7. = f ( x )g ' ( x ) + f ' ( x )g ( x )
dx
41
Rules for Finding Derivatives
f (x)
d
g ( x ) f ' ( x )g ( x ) − f ( x )g ' ( x )
8. =
dx [g ( x )]2
provided that g ( x ) ≠ 0
42
Rules for Finding Derivatives
• If y = f(x) and x = g(z) (i.e. y=f(g(z)) and if
both f’(x) and g’(z) exist, then:
dy dy dx df dg
9. = ⋅ = ⋅
dz dx dz dx dz
• This is called the chain rule. The chain rule
allows us to study how one variable (z)
affects another variable (y) through its
influence on some intermediate variable (x)
43
Rules for Finding Derivatives
• Some examples of the chain rule include
de ax de ax d (ax )
10. = ⋅ = e ax ⋅ a = ae ax
dx d (ax ) dx
d [ln(ax )] d [ln( ax )] d ( ax ) 1 1
11. = × = ×a =
dx d (ax ) dx ax x
2 2 2
d [ln( x )] d [ln( x )] d ( x ) 1 2
12. = 2
⋅ = 2 ⋅ 2x =
dx d(x ) dx x x
44
Second Derivatives
d 2π d 2f
2
or 2
or f " (q )
dq dq
45
3.3. Functions of Several Variables
• Most goals of economic agents depend on
several variables
– trade-offs must be made
• The dependence of one variable (y) on a
series of other variables (x1,x2,…,xn) is
denoted by
y = f (x1, x 2 ,..., xn )
46
Partial Derivatives
48
Calculating Partial Derivatives
1. If y = f ( x1, x 2 ) = ax12 + bx1 x 2 + cx 22 , then
∂f
= f1 = 2ax1 + bx 2 and
∂x1
∂f
= f2 = bx1 + 2cx 2
∂x 2
ax1 + bx 2
2. If y = f ( x1, x 2 ) = e , then
∂f ax + bx ∂f ax + bx
= f1 = ae 1 2
and = f2 = be 1 2
∂x1 ∂x 2
49
Calculating Partial Derivatives
3. If y = f (x1, x 2 ) = a ln x1 + b ln x 2 , then
∂f a ∂f b
= f1 = and = f2 =
∂x1 x1 ∂x 2 x2
50
Partial Derivatives
• Partial derivatives are the mathematical
expression of the ceteris paribus
assumption
– show how changes in one variable affect some
outcome when other influences are held
constant
51
Partial Derivatives
• We must be concerned with how variables
are measured
– if q represents the quantity of gasoline
demanded (measured in billions of gallons) and
p represents the price in dollars per gallon,
then ∂q/∂p will measure the change in demand
(in billiions of gallons per year) for a dollar per
gallon change in price
52
Elasticity
• Elasticities measure the proportional effect
of a change in one variable on another
– unit free
• The elasticity of y with respect to x is
∆y
y ∆y x ∂y x
ey , x = = ⋅ = ⋅
∆x ∆x y ∂x y
x
53
Elasticity and Functional Form
• Suppose that
y = a + bx + other terms
• In this case,
∂y x x x
ey , x = ⋅ = b⋅ = b⋅
∂x y y a + bx + ⋅ ⋅ ⋅
• ey,x is not constant
– it is important to note the point at which the
elasticity is to be computed
54
Elasticity and Functional Form
• Suppose that
y = axb
• In this case,
∂y x b −1 x
ey , x = ⋅ = abx ⋅ b = b
∂x y ax
55
Elasticity and Functional Form
• Suppose that
y = axb => ln y = ln a + b ln x
• In this case,
∂y
∂y x y ∂ ln y
ey ,x = × = = =b
∂x y ∂x ∂ ln x
x
• Elasticities can be calculated through
logarithmic differentiation
56
Second-Order Partial Derivatives
• The partial derivative of a partial derivative
is called a second-order partial derivative
∂(∂f / ∂x i ) ∂ 2f
= = fij
∂x j ∂x j x i
57
Young’s Theorem
58
Use of Second-Order Partials
• Second-order partials play an important
role in many economic theories
• One of the most important is a variable’s
own second-order partial, fii
– shows how the marginal influence of xi on y
(i.e. (∂y/∂xi)) changes as the value of xi
increases
– a value of fii < 0 indicates diminishing marginal
effectiveness
59
Total Differential
• Suppose that y = f(x1,x2,…,xn)
• If all x’s are varied by a small amount, the
total effect on y will be
∂f ∂f ∂f
dy = dx1 + dx 2 + ... + dx n
∂x1 ∂x 2 ∂xn
60
Implicit function
• The equation
y=mx + b
• can be written as
y – mx – b =0
• or, even more generally, as
f( x, y, m, b) = 0
Is called implicit function - the relationship between
variables and parameters are implicitly present in the
equation
61
Derivative from implicit functions
0 = f x dx + f y dy
dy fx
→ =−
dx fy
62
Production Possibility Frontier
dy − fx − 4x − 2x
= = =
dx fy 2y y
63
Implicit Function Theorem
• It may not always be possible to solve implicit
functions of the form g(x,y)=0 for unique
explicit functions of the form y = f(x)
– mathematicians have derived the necessary
conditions
– in many economic applications, these conditions are
the same as the second-order conditions for a
maximum (or minimum)
64
The Envelope Theorem
65
The Envelope Theorem
• Suppose that y is a function of x
y = -x2 + ax
• For different values of a, this function
represents a family of inverted parabolas
• If a is assigned a specific value, then y becomes
a function of x only and the value of x that
maximizes y can be calculated
66
The Envelope Theorem
Optimal Values of x and y for alternative values of a
67
The Envelope Theorem
As a increases,
the maximal value
for y (y*) increases
The relationship
between a and y
is quadratic
68
The Envelope Theorem
• Suppose we are interested in how y* changes
as a changes
• There are two ways we can do this
– calculate the slope of y directly
– hold x constant at its optimal value and calculate
∂y/∂a directly
69
The Envelope Theorem
• To calculate the slope of the function (i.e. y =
-x2 + ax), we must solve for the optimal value
of x for any value of a
dy/dx = -2x + a = 0
x* = a/2
• Substituting, we get
y* = -(x*)2 + a(x*) = -(a/2)2 + a(a/2)
y* = -a2/4 + a2/2 = a2/4
70
The Envelope Theorem
• Therefore,
dy*/da = 2a/4 = a/2 = x*
71
The Envelope Theorem
∂y/ ∂a = x
• Holding x = x*
∂y/ ∂a = x* = a/2
72
The Envelope Theorem
• The envelope theorem states that the change in
the optimal value of a function with respect to a
parameter of that function can be found by
partially differentiating the objective function
while holding x (or several x’s) at its optimal
value
dy * ∂y
= {x = x * (a)}
da ∂a
73
The Envelope Theorem
• The envelope theorem can be extended to the
case where y is a function of several variables
y = f(x1,…xn,a)
74
The Envelope Theorem
• Optimal values for theses x’s would be
determined that are a function of a
x1* = x1*(a)
x2* = x2*(a)
.
.
.
xn*= xn*(a)
75
The Envelope Theorem
• Substituting into the original objective function
yields an expression for the optimal value of y
(y*)
y* = f [x1*(a), x2*(a),…,xn*(a),a]
• Differentiating yields
dy * ∂f dx1 ∂f dx 2 ∂f dx n ∂f
= ⋅ + ⋅ + ... + ⋅ +
da ∂x1 da ∂x 2 da ∂xn da ∂a
76
The Envelope Theorem
• Because of first-order conditions, all terms
except ∂f/∂a are equal to zero if the x’s are at
their optimal values
• Therefore,
dy * ∂f
= {x = x * (a)}
da ∂a
77
3.4. Integration
•This section starts with the application of
integration :area and distance problems and uses
them to formulate the idea of a definite integral,
which is the basic concept of integral calculus.
•There is a connection between integral calculus and
differential calculus. The Fundamental Theorem of
Calculus relates the integral to the derivative, and we
will see in this chapter that it greatly simplifies the
solution of many problems.
The Area Problem
2:
3:
4:
5:
6:
7:
8:
9:
10:
11:
12:
The Fundamental Theorem of Calculus
The Fundamental Theorem of Calculus is appropriately named
because it establishes a connection between the two branches of
calculus: differential calculus and integral calculus. Differential
calculus arose from the tangent problem, whereas integral calculus
arose from a seemingly unrelated problem, the area problem.
Newton’s teacher at Cambridge, Isaac Barrow (1630–1677),
discovered that these two problems are actually closely related. In
fact, he realized that differentiation and integration are inverse
processes. The Fundamental Theorem of Calculus gives the precise
inverse relationship between the derivative and the integral. It was
Newton and Leibniz who exploited this relationship and used it to
develop calculus into a systematic mathematical method. In
particular, they saw that the Fundamental Theorem enabled them to
compute areas and integrals very easily without having to compute
them as limits of sums
Differentiation and Integration as Inverse Processes
Importance of
The Fundamental Theorem of Calculus
The Fundamental Theorem of Calculus is unquestionably the most
important theorem in calculus and, indeed, it ranks as one of the
great accomplishments of the human mind.
Before it was discovered, from the time of Eudoxus and Archimedes
to the time of Galileo and Fermat, problems of finding areas,
volumes, and lengths of curves were so difficult that only a genius
could meet the challenge. But now, armed with the systematic
method that Newton and Leibniz fashioned out of the Fundamental
Theorem, we will see in the chapters to come that these challenging
problems are accessible to all of us.
Indefinite Integrals or Antiderivatives
Definition:
The general logarithmic function with base is the function defined by
The Exponential Function
Definition: