Calculus of Several Variables

• Functions of Several Variables

• Partial Derivatives
• Maxima and Minima of
Functions of Several Variables
Functions of Several Variables

z
f(x, y) = x2 + y2

x2 + y2 = 16

x 2 + y2 = 9
x2 + y2 = 4
x2 + y2 = 1
y
x2 + y2 = 0

x
 Functions of Two Variables
A real-valued function of two variables f, consists of
1. The domain of the function.
2. A rule that associates with each ordered pair in the
domain of f one and only one real number, denoted by z =
f(x, y).
 Examples
• Let f be the function defined by
f ( x, y )  x  xy  y 2  2

• Compute f(0, 0), f(1, 2), and f(2, 1).

• The domain of a function of two variables f(x, y),

is a set of ordered pairs of real numbers and may
therefore be viewed as a subset of the xy-plane.

Example 1, page 536

 Examples
• Find the domain of the function
f ( x, y )  x 2  y 2

Solution
• f(x, y) is defined for all real values of x and y,
so the domain of the function f is the set of all
points (x, y) in the xy-plane.

Example 2, page 536

 Examples
• Find the domain of the function
2
g ( x, y ) 
x y

Solution
• g(x, y) is defined for all xy ≠ y, so the domain of
the function g is the set of all points y=x
(x, y) in
the xy-plane except those lying on the y = x
line.
x

Example 2, page 536

 Examples
• Find the domain of the function
h ( x, y )  1  x 2  y 2

Solution
• We require that 1 – x2 – y2  0 or x2 + y2  1
y
which is the set of all points (x, y) lying on and
inside the circle of radius
1 1 xwith center
+y =1 2
at the
2

origin:
x
–1 1

–1
Example 2, page 536
 Applied Example: Revenue Functions
• Acrosonic manufactures a bookshelf loudspeaker
system that may be bought fully assembled or in
a kit.
• The demand equations that relate the unit price,
p and q, to the quantities demanded weekly, x and
y, of the assembled and kit versions of the
loudspeaker systems are given by
1 1 1 3
p  300  x  y and q  240  x  y
4 8 8 8

a. What is the weekly total revenue function R(x, y)?

b. What is the domain of the function R?
Applied Example 3, page 537
 Applied Example: Revenue Functions
Solution
a. The weekly revenue from selling x units
assembled speaker systems at p dollars per
unit is given by xp dollars.
Similarly, the weekly revenue from selling y
speaker kits at q dollars per unit is given by yq
dollars. R( x, y )  xp  yq
Therefore, the weekly total revenue function R
is given by  x  300  1 x  1 y   y  240  1 x  3 y 
 4 8   8 8 
1 2 3 2 1
  x  y  xy  300 x  240 y
4 8 4
 First Partial Derivatives
First Partial Derivatives of f(x, y)
• Suppose f(x, y) is a function of two variables x and y.
• Then, the first partial derivative of f with respect to x
at the point (x, y) is
f f ( x  h, y )  f ( x , y )
 lim
x h0 h
provided the limit exists.
• The first partial derivative of f with respect to y at the
point (x, y) is
f f ( x, y  k )  f ( x, y )
 lim
y k 0 k

provided the limit exists.

• The partial derivative of f with respect to x

is found by differentiating f with respect to x, with y

held constant.
• We use curly dees in the notation
To distinguish partial differentiation
of functions of several variables from
ordinary differentiation of functions
of one variable. The alternative
notation, fx, is analogous to the f′
notation for ordinary differentiation.
 Examples
• Find the partial derivatives ∂f/∂x and ∂f/∂y of the
function 2 2 3
f ( x, y )  x  xy  y

Use the partials to determine the rate of change of f in the

x-direction and in the y-direction at the point (1, 2) .

Solution
• To compute ∂f/∂x, think of the variable y as a constant
and differentiate the resulting function of x with respect
to x: 2 2 3
f ( x, y )  x  y x  y
f
 2x  y2
x

Example 1, page 546

 Examples
• Find the partial derivatives ∂f/∂x and ∂f/∂y of the function

f ( x, y )  x 2  xy 2  y 3
• Use the partials to determine the rate of change of f in the
x-direction and in the y-direction at the point (1, 2).

Solution
• To compute ∂f/∂y, think of the variable x as a constant and
differentiate the resulting function of y with respect to y:
f ( x , y )  x 2  xy 2  y 3
f
 2 x y  3 y 2
y

Example 1, page 546

 Examples
• Find the partial derivatives ∂f/∂x and ∂f/∂y of the
function 2 2 3
f ( x, y )  x  xy  y

• Use the partials to determine the rate of change

of f in the x-direction and in the y-direction at the
point (1, 2).
Solution
• The rate of change of f in the x-direction at the
point (1, 2) is given by f  2(1)  2 2  2
x (1,2)

• The rate of change of f in the y-direction at the

point (1, 2) is given by f  2(1)(2)  3(2) 2  8
Example 1, page 546 y (1,2)
 Examples
• Find the first partial derivatives of the function
xy
w( x , y ) 
x2  y2
Solution
• To compute ∂w/∂x, think of the variable y as a
constant and differentiate the resulting xy
function of x with respect to x: w( x, y )  x 2  y 2
w ( x 2  y 2 ) y  xy (2 x )

x ( x 2  y 2 )2

y( y 2  x2 )
 2
( x  y 2 )2
Example 2, page 547
 The Cobb-Douglas Production Function
• The Cobb-Douglass Production Function is of the
form
f(x, y) = axby1– b(0 < b < 1)
where
a and b are positive constants,
x stands for the cost of labor,
y stands for the cost of capital equipment,
and
f measures the output of the finished
product.
 The Cobb-Douglas Production
Function
• The Cobb-Douglass Production Function is of the
form
f(x, y) = axby1– b (0 < b < 1)

• The first partial derivative fx is called the marginal

productivity of labor.
– It measures the rate of change of production with respect to the amount of money
spent on labor, with the level of capital kept constant.

• The first partial derivative fy is called the marginal

productivity of capital.
– It measures the rate of change of production with respect to the amount of money
spent on capital, with the level of labor kept constant.
 Applied Example: Marginal Productivity
A certain country’s production in the early years
following World War II is described by the function
f(x, y) = 30x2/3y1/3
when x units of labor and y units of capital were used.
a) Find the marginal productivity of labor and the
marginal productivity of capital when the amount
expended on labor and capital was 125 units and 27
units, respectively.
b) Should the government have encouraged capital
investment rather than increase expenditure on labor to
increase the country’s productivity?
Applied Example 4, page 550
 Applied Example: Marginal Productivity
f(x, y) = 30x2/3y1/3
Solution
• The first partial derivatives are 1/3
2 1/3 1/3  y
f x  30  x y  20  
3 x
2/3
1 x
f y  30 x 2/3  y 2/3  10  
3  y
 Applied Example: Marginal Productivity
f(x, y) = 30x2/3y1/3
Solution
• The required marginal productivity of labor is given by
1/3
 27   3
f x (125, 27)  20    20    12
 125   5

or 12 units of output per unit increase in labor

expenditure (keeping capital constant).
• The required marginal productivity of capital is given by
2/3
 125   25 
f y (125, 27)  10    10    27 79
 27   9 

or 27 7/9 units of output per unit increase in capital

Appliedexpenditure
Example 4, page 550 (keeping labor constant).
 Second Order Partial Derivatives
• The first partial derivatives fx(x, y) and fy(x, y)
of a function f(x, y) of two variables x and y
are also functions of x and y.
• As such, we may differentiate each of the
functions fx and fy to obtain the second-order
partial derivatives of f.
 Second Order Partial Derivatives
• Differentiating the function fx with respect to x
leads to the second partial derivative
2 f 
f xx  2  ( f x )
x x

• But the function fx can also be differentiated

with respect to y leading to a different second
2
partial derivative f xy  f   ( f x )

yx y
 Second Order Partial Derivatives
• Similarly, differentiating the function fy with
respect to y leads to the second partial
derivative 2 f 
f yy  2
 ( fy )
y y

• Finally, the function fy can also be

differentiated with respect to x leading to the
second partial derivative2
 f 
f yx   ( fy )
xy x
 Second Order Partial Derivatives
• Thus, four second-order partial derivatives can
be obtained of a function of two variables:
   f   2 f
x   2
f x  x  x

x   f   2 f

x  
y y  x  yx
2 f 2 f
f 
yx xy
   f   2 f
    When both are
f x x  y  xy continuous
y
y    f   2 f
   2
y y  y  y
 Examples
Find the second-order partial derivatives of the
function
f ( x, y )  x 3  3x 2 y  3xy 2  y 2

Solution
•First, calculate fx and use it to find fxx and fxy:
 3
f x  ( x  3x 2 y  3xy 2  y 2 )  3x 2  6 xy  3 y 2
x
 
f xx  (3x 2  6 xy  3 y 2 ) f xy  (3x 2  6 xy  3 y 2 )
x y
 6x  6 y  6 x  6 y

Example 6,page
6( x552
 y)  6( y  x )
 Examples
• Find the second-order partial derivatives of the
function
f ( x, y )  x 3  3x 2 y  3xy 2  y 2

Solution
• Then, calculate fy and use it to find fyx and fyy:
 3
fy  ( x  3x 2 y  3xy 2  y 2 )  3x 2  6 xy  2 y
y
 2 
f yx  ( 3x  6 xy  2 y ) f yy  ( 3x 2  6 xy  2 y )
x y
 6 x  6 y  6x  2
 6( y  x )  2(3 x  1)
Example 6, page 552
• the small increments formula.

• Implicit .....
Unconstrained Optimization

x (g, h)
(a, b) y
(c, d)
(e, f )
 Relative Extrema of a Function of Two
Variables
• Let f be a function defined on a region R containing
the point (a, b).
• Then, f has a relative maximum at (a, b) if
f(x, y)  f(a, b)
for all points (x, y) that are sufficiently close to (a, b).
– The number f(a, b) is called a relative maximum value.
• Similarly, f has a relative minimum at (a, b) if
f(x, y)  f(a, b)
for all points (x, y) that are sufficiently close to (a, b).
– The number f(a, b) is called a relative minimum value.
 Graphic Example
 There is a relative maximum at (a, b).

x y
(a, b)
 Graphic Example
 There is an absolute maximum at (c, d).
(It is also a relative maximum)
z

x y
(c, d)
 Graphic Example
 There is an absolute minimum at (g, h).
(It is also a relative minimum)
z

x (g, h)
y
 The Necessary Condition

 f
 x  0
 f  ( x, y )  ( a, b) stationary point
 0
 y

• A critical point of f is a point (a, b) in the

domain of f such that it is either a stationary
point or at least one of the partial
derivatives does not exist.
 The Sufficient Condition
1. Find the critical points of f(x, y) by applying the necessary condition
2. The second derivative test: f xx f xy
Let D(x, y) = fxx fyy – f 2xy = f f yy
yx
3. Then,
a. D(a, b) > 0 and fxx(a, b) < 0 implies that f(x, y) has a relative
maximum at the point (a, b).
b. D(a, b) > 0 and fxx(a, b) > 0 implies that f(x, y) has a relative
minimum at the point (a, b).
c. D(a, b) < 0 implies that f(x, y) has neither a relative maximum
nor a relative minimum at the point (a, b), it has instead a
saddle point.
d. D(a, b) = 0 implies that the test is inconclusive, so some other
technique must be used to solve the problem.
 Examples
• Find the relative extrema of the function
f ( x, y )  x 2  y 2
Solution
• We have fx = 2x and fy = 2y.
• To find the critical points, we set fx = 0 and fy = 0 and
solve the resulting system of simultaneous equations
2x = 0 and 2y = 0
obtaining x = 0, y = 0, or (0, 0), as the sole critical point.
• Next, apply the second derivative test to determine the
nature of the critical point (0, 0).
• We compute fxx = 2, fyy = 2, and fxy = 0,
• Thus, D(x,
Example 1, page 561 y) = f f
xx yy – f 2
xy = (2)(2) – (0) 2
= 4.
 Examples
• Find the relative extrema of the function
f ( x, y )  3 x 2  4 xy  4 y 2  4 x  8 y  4
Solution
• We have f  6 x  4 y  4 and f  4 x  8 y  8
x y
• To find the critical points, we set fx = 0 and fy = 0 and
solve the resulting system of simultaneous equations
6x – 4y – 4 = 0 and – 4x + 8y + 8 = 0
obtaining x = 0, y = –1, or (0, –1), as the sole critical
point.
• Next, apply the second derivative test to determine the
nature of the critical point (0, –1).
• We compute fxx = 6, fyy = 8, and fxy = – 4,
• Thus, D(x, y) = fxx · fyy – f 2xy = (6)(8) – (– 4)2 = 32.
Example 2, page 562
 Applied Example: Revenue Functions
• Acrosonic manufactures a bookshelf loudspeaker
system that may be bought fully assembled or in
a kit.
• The demand equations that relate the unit price,
p and q, to the quantities demanded weekly, x and
y, of the assembled and kit versions of the
loudspeaker systems are given by
1 1 1 3
p  300  x  y and q  240  x  y
4 8 8 8
Determine how many assembled units and how many
kits should be produced per week to maximize total
revenue function R(x, y)?
Applied Example 3, page 537
Constrained Optimization

z
f(x, y) = 2x2 + y2

h(x) = 3x2 – 2x + 1

(a, b, f(a, b))

y
(a, b)
g(x, y) = 0

x
 Constrained Optimization
• In many practical optimization problems, we must
maximize or minimize a function in which the
independent variables are subjected to certain
further constraints.

• We shall discuss a powerful method for determining

relative extrema of a function f(x, y) whose
independent variables x and y are required to satisfy
one or more constraints of the form g(x, y) = 0.
 Example
• Find the relative minimum of f(x, y) = 2x2 +y2
subject to the constraint g(x, y) = x + y = 1.
Solution
• Solving the constraint equation for y explicitly
in terms of x, we obtain
y=–x+1
• Substituting this value of y into f(x, y) results
in a function of x,
h( x )  2 x 2  (  x  1)2  3x 2  2 x  1

Example 1, page 580

 The Method of Lagrange Multipliers
The mathematical Problem The Objective function

f(x, y)  Max (Min)

subject to a constraint g(x, y) = b

Step 1. Form an auxiliary function called the Lagrangian function.

L( x, y,  )  f ( x, y )   b  g ( x, y ) 
the Lagrange multiplier

Step 2. Solve the system that consists of the equations

Lx = 0 Ly = 0 L λ = 0
(Note that L= b-g(x,y)=0  g(x,y) = b )
Step 3. The solutions found in step 2 are candidates for the extrema of f.
If M 0  x10 , x20 ,λ0  is a solution found in step 2.

We need to find 2
 L
' '
g1  g x1 (M 0 ); g 2  g x2 (M 0 ); Lij  (M 0 ) i, j  1, 2
xix j
Set up the following matrix
 0 g1 g2 
H   g1 L11 L12 
 
 g2 L21 L22 

If det(H) < 0 then M0 is a minimum point.

If det(H) > 0 then M0 is a maximum point.
42
• If we partially differentiate L with respect to b then
L

b

the value of λ gives the approximate change in the

optimal value of f due to a 1 unit increase in b.
 an interpretation of a partial derivative

• y = f(x) The derivative, dy/dx, gives the rate of

change of y with respect to x. In other words, if x
changes by a small amount ∆x then the
corresponding change in y satisfies

• Moreover, the accuracy of the approximation

improves as ∆x becomes smaller and smaller.
• for a function of two variables z = f(x, y) if x changes by a
small amount ∆x and y is held fixed then the corresponding
change in z satisfies

• Similarly, if y changes by ∆y and x is fixed then z changes by

• In practice, of course, x and y may both change simultaneously. If this is the case then the net change in z will be the
sum of the individual changes brought about by changes in x and y separately, so that
• The small increments formula

where the symbols dx, dy and dz are called differentials and

represent limiting values of ∆x, ∆y and ∆z, respectively.

E.g: If z = x3y − y3x evaluate

at the point (1, 3). Hence estimate the change in z
when x increases from 1 to 1.1 and y decreases
from 3 to 2.8 simultaneously.
(z increases by approximately 3.4)
(Positive numbers denote increases)
• find dy/dx given the equation? y3 + 2x y2 − x = 5
You would need to rearrange this equation and to write y in terms of x before you could differentiate it. Unfortunately, this is an impossible task because of the presence
of the y3 term.

• In general: f(x,y) = z0 (The constant value)

• The differential form of the small increments
formula states that

In our particular case, z takes

the constant value of 5,
so does not change.
Hence dz=0 and the formula reduces to
• Verify that x = 1, y =−1 satisfy the equation
x2 − 2y3 = 3.
Use implicit differentiation to find the value of
dy/dx at this point.
Partial elasticity and marginal functions
We concentrate on three main areas:
•elasticity of demand
•Utility
•Production.
• Suppose that the demand, Q, for a certain good depends on its price, P, the price of an
alternative good, PA, and the income of consumers, Y, so that Q = f(P, P A, Y) for some
demand function, f. Of particular interest is the responsiveness of demand to changes in
any one of these three variables. This can be measured quantitatively using elasticity. The
(own) price elasticity of demand is defined to be

with PA and Y held constant. The same following mathematical argument presented there
we deduce that

The partial derivative notation is used here because Q is now a function of several variables,
and PA and Y are held constant.
• The cross-price elasticity of demand

with P and Y held constant. Again, the usual mathematical argument shows that

The sign of EPA could turn out to be positive or negative depending on the nature of the
alternative good. If the alternative good is substitutable then Q increases as PA rises,
because consumers buy more of the given good as it becomes relatively less expensive.
Consequently,

If the alternative good is complementary then Q decreases as P A rises, because the bundle of
goods as a whole becomes more expensive. Consequently,
 The income elasticity of demand

and can be found from

Again, EY can be positive or negative. If the good is

superior then demand rises as income rises and EY
is positive. However, if the good is inferior then
demand falls as income rises and EY is negative.
Homework:
Given the demand function
Q = 100 − 2P + PA + 0.1Y
where P = 10, PA = 12 and Y = 1000, find the
(a) price elasticity of demand
(b) cross-price elasticity of demand
(c) income elasticity of demand
•Is the alternative good substitutable or
complementary?
•Is the good inferior or superior?
• Given the demand function
Q = 500 − 3P − 2PA + 0.01Y
where P = 20, PA = 30 and Y = 5000, find
(a)the price elasticity of demand
(b)the cross-price elasticity of demand
(c)the income elasticity of demand If income rises
by 5%, calculate the corresponding percentage
change in demand.
• Is the good inferior or superior?
• Given the utility function U = x11/4x23/4 determine
the value of the marginal utilities

when x1 = 100 and x2 = 200. Hence estimate the

change in utility when x1 decreases from 100 to
99 and x2 increases from 200 to 201.
 Homework
• The law of diminishing marginal productivity
• The law of diminishing marginal utility.
• The marginal rate of technical substitution
• The second-partial derivative ∂2U/∂x21
• The fact that this is negative means that marginal
utility of x1 decreases as x1 rises. In other words, as the
consumption of good G1 increases, each additional
item of G1 bought confers less utility than the previous
item.
• A similar property holds for G2. This is known as the
law of diminishing marginal utility.
• We quantify this exchange of goods by introducing the
marginal rate of commodity substitution, MRCS. This is
defined to be the increase in x2 necessary to maintain a
constant value of utility when x1 decreases by 1 unit.