In a moment, we will look at a simple example involving the function f(x) = 100 x

Size: px
Start display at page:

Download "In a moment, we will look at a simple example involving the function f(x) = 100 x"

Transcription

1 Rates of Change Calculus is the study of the way that functions change. There are two types of rates of change: 1. Average rate of change. Instantaneous rate of change In a moment, we will look at a simple example involving the function f(x) = 100 x, graphed below. Graph of f(x) = 100 x Before we think about the example, let s try to understand what rate of change means. Keep in mind that the independent variable x, which is measured along the horizontal axis, controls the values for the dependent variable y, which is measured along the vertical axis. In a sense, x controls the shape of the graph, and changing x causes the height (y-values) of the curve to change. We would like to understand exactly how changing x affects the y-values of the curve. For example, we could move from x =.5 to x = 1.5 and ask how this affects the height of the curve: 1

2 Change in x causes a change in y. In the following example, we will answer some specific questions about the rate of change of f(x). Example. On a bus ride to New York, you get a bit bored and decide to write a function that describes your distance traveled as a function of time. You come up with the equation f(x) = 100 x, whose graph is shown below: Graph of f(x) = 100 x From the graph, we see that D(1) 70; in other words, you traveled about 70 miles in the first hour. Again inspecting the graph, we can see that you traveled the remaining 30 miles in the second hour. As mentioned above, we want to think about the way that this function changes. Since it took hours to drive the entire 100 miles, you could describe the change by saying that your distance changed by 50 miles per hour. However, this is a bit misleading we already know that the function changed by about 70 miles (not 50!) in the first hour, and only 30 in the second hour. To be more precise about what we mean, we should say that the average rate of change of the function f(x) from x = 0 to x = is 50 (miles per hour).

3 As a side note, think for a moment about the line joining the endpoints of our curve: Secant line joining (0, f(0)) to (, f()). Notice that the slope of this line is exactly 50 in other words, computing the average rate of change of the function from x = 0 to x = gave us the same answer as if we had computed the slope of the secant line joining the points (0, f(0)) and (, f()). This is an important relationship to keep in mind. As mentioned before, we have computed the average rate of change of f(x) over a two hour time period, but your speed certainly was not 50 miles per hour at each point of the trip. In fact, you traveled much faster the first half of the trip than you did the second half. This leads to a natural question: what was the rate of change of our function f(x) at a specific point in time, say at x = 1? We call this the instantaneous rate of change of f(x) at x = 1. 3

4 This question is quite difficult, and answering it will occupy a good bit of our time in this class. However, it turns out that there is a similarity here to our previous discussion of average rate of change: the instantaneous rate of change of f(x) at x = 1 is precisely the slope of a tangent line to the curve at x = 1: Slope of the tangent line at x = 1 is the instantaneous rate of change of f at x = 1. So answering the question comes down to finding the slope of the line above. But we only know one point on this line, the point (1, f(1)). To compute its slope, we must know more information about the line. It turns out the we actually do not have enough information to compute this line s slope. However, we can try to approximate its slope using information we already know. Compare the original tangent line to the secant line that passes through the points (1, f(1)) and (, f()): 4

5 It appears that the slopes are fairly close together, so if we can find the slope of the secant line (which is easy to compute), then we can use this number as an approximation for the slope of the tangent line. Since slope is rise run, the slope of the secant line joining the points (1, f(1)) and (, f()) is f() f(1) = = So the instantaneous rate of change of f(x) at x = 1 is about 9 miles per hour. Let s keep track of the data that we have just computed using the table below. x slope of secant 9 In the first slot, we wrote down the x coordinate of the second point of the secant line starting at (1, f(1)); in the second slot, we wrote down the slope of the secant line joining (1, f(1)) and (, f()). Now we may not be quite satisfied with this answer it is only an approximation, and perhaps not a very good one. How can we make the approximation better? One idea that presents itself quickly is to try again compute the slope of another secant line, hopefully one whose slope is closer to the slope of the tangent line. Let s see what happens if we slide the second point of the secant we used earlier back along the curve a bit closer to (1, f(1)), say to (3/, f(3/)): 5

6 We can use this new point to build a new secant line, graphed in orange below: Notice that the new secant line appears to have slope much closer to that of the tangent line. 6

7 Let s compute its slope, rise run : f(3/) f(1) 3/ 1 = / 1 = ( ) = 00 ( ) 3. Let s add this new data to our chart: x slope Now we could continue this process ad naseum: the closer we slide the second point of the secant line towards (1, f(1)), the closer the slope of the secant is to the slope of the tangent: 7

8 We ll do one more example, choosing t quite close to 1, say t = 1.1, which gives us the secant line graphed below in light blue: Since slope = rise run, we get f(1.1) f(1) = = 10 ( ) = 1000 ( )

9 for the slope of the secant line passing through (1, f(1)) and (1.1, f(1.1)). Continuing our table (and adding on some extra slopes that I won t compute in class), we have x slope 9 3/ From the table, it appears reasonable to guess that the instantaneous rate of change of the function f(x) at x = 1 is about In other words, if your bus driver had looked at his speedometer at exactly one hour into the trip, it would have read very close to miles per hour. This number is still an approximation for the instantaneous rate of change of f(x) at x = 1, but in future sections we will learn how to compute instantaneous rates of change precisely. To be able to do this, we will need to make the idea of sliding one point towards another more concrete, which we will do in the next section when we discuss limits. Let s summarize the ideas we ve seen so far. There are two types of rates of change, and each type is related to the slope of a particular line: 1. Average rate of change: the average rate of change of the function f(x) from x = a to x = b is the slope of the secant line joining the points (a, f(a)) and (b, f(b)).. Instantaneous rate of change: the instantaneous rate of change of the function f(x) at x = a is the slope of the line tangent to the curve f(x) at the point (a, f(a)). 9

10 10

MLC at Boise State Polynomials Activity 2 Week #3

MLC at Boise State Polynomials Activity 2 Week #3 Polynomials Activity 2 Week #3 This activity will discuss rate of change from a graphical prespective. We will be building a t-chart from a function first by hand and then by using Excel. Getting Started

More information

Lab 14: Accumulation and Integration

Lab 14: Accumulation and Integration Lab 14: Accumulation and Integration Sometimes we know more about how a quantity changes than what it is at any point. The speedometer on our car tells how fast we are traveling but do we know where we

More information

Exponential Functions

Exponential Functions Exponential Functions In this chapter, a will always be a positive number. For any positive number a>0, there is a function f : R (0, ) called an exponential function that is defined as f(x) =a x. For

More information

4.2 Rolle's Theorem and Mean Value Theorem

4.2 Rolle's Theorem and Mean Value Theorem 4.2 Rolle's Theorem and Mean Value Theorem Rolle's Theorem: Let f be continuous on the closed interval [a,b] and differentiable on the open interval (a,b). If f (a) = f (b), then there is at least one

More information

Symmetric Game. In animal behaviour a typical realization involves two parents balancing their individual investment in the common

Symmetric Game. In animal behaviour a typical realization involves two parents balancing their individual investment in the common Symmetric Game Consider the following -person game. Each player has a strategy which is a number x (0 x 1), thought of as the player s contribution to the common good. The net payoff to a player playing

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. C) y = - 39x - 80 D) y = x + 8 5

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. C) y = - 39x - 80 D) y = x + 8 5 Assn 3.4-3.7 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Find the equation of the tangent line to the curve when x has the given value. 1)

More information

Math Winter 2014 Exam 1 January 30, PAGE 1 13 PAGE 2 11 PAGE 3 12 PAGE 4 14 Total 50

Math Winter 2014 Exam 1 January 30, PAGE 1 13 PAGE 2 11 PAGE 3 12 PAGE 4 14 Total 50 Name: Math 112 - Winter 2014 Exam 1 January 30, 2014 Section: Student ID Number: PAGE 1 13 PAGE 2 11 PAGE 3 12 PAGE 4 14 Total 50 After this cover page, there are 5 problems spanning 4 pages. Please make

More information

CS227-Scientific Computing. Lecture 6: Nonlinear Equations

CS227-Scientific Computing. Lecture 6: Nonlinear Equations CS227-Scientific Computing Lecture 6: Nonlinear Equations A Financial Problem You invest $100 a month in an interest-bearing account. You make 60 deposits, and one month after the last deposit (5 years

More information

b) According to the statistics above the graph, the slope is What are the units and meaning of this value?

b) According to the statistics above the graph, the slope is What are the units and meaning of this value? ! Name: Date: Hr: LINEAR MODELS Writing Motion Equations 1) Answer the following questions using the position vs. time graph of a runner in a race shown below. Be sure to show all work (formula, substitution,

More information

Lesson 10: Interpreting Quadratic Functions from Graphs and Tables

Lesson 10: Interpreting Quadratic Functions from Graphs and Tables : Interpreting Quadratic Functions from Graphs and Tables Student Outcomes Students interpret quadratic functions from graphs and tables: zeros ( intercepts), intercept, the minimum or maximum value (vertex),

More information

Math 1526 Summer 2000 Session 1

Math 1526 Summer 2000 Session 1 Math 1526 Summer 2 Session 1 Lab #2 Part #1 Rate of Change This lab will investigate the relationship between the average rate of change, the slope of a secant line, the instantaneous rate change and the

More information

Linear functions Increasing Linear Functions. Decreasing Linear Functions

Linear functions Increasing Linear Functions. Decreasing Linear Functions 3.5 Increasing, Decreasing, Max, and Min So far we have been describing graphs using quantitative information. That s just a fancy way to say that we ve been using numbers. Specifically, we have described

More information

Section 4: Rates in Real Life

Section 4: Rates in Real Life Chapter 2 The Derivative Business Calculus 93 Section 4: Rates in Real Life So far we have emphasized the derivative as the slope of the line tangent to a graph. That interpretation is very visual and

More information

Since his score is positive, he s above average. Since his score is not close to zero, his score is unusual.

Since his score is positive, he s above average. Since his score is not close to zero, his score is unusual. Chapter 06: The Standard Deviation as a Ruler and the Normal Model This is the worst chapter title ever! This chapter is about the most important random variable distribution of them all the normal distribution.

More information

Name Student ID # Instructor Lab Period Date Due. Lab 6 The Tangent

Name Student ID # Instructor Lab Period Date Due. Lab 6 The Tangent Name Student ID # Instructor Lab Period Date Due Lab 6 The Tangent Objectives 1. To visualize the concept of the tangent. 2. To define the slope of the tangent line. 3. To develop a definition of the tangent

More information

1 4. For each graph look for the points where the slope of the tangent line is zero or f (x) = 0.

1 4. For each graph look for the points where the slope of the tangent line is zero or f (x) = 0. Name: Homework 6 solutions Math 151, Applied Calculus, Spring 2018 Section 4.1 1-4,5,20,23,24-27,38 1 4. For each graph look for the points where the slope of the tangent line is zero or f (x) = 0. 5.

More information

Notation for the Derivative:

Notation for the Derivative: Notation for the Derivative: MA 15910 Lesson 13 Notes Section 4.1 (calculus part of textbook, page 196) Techniques for Finding Derivatives The derivative of a function y f ( x) may be written in any of

More information

BARUCH COLLEGE MATH 2003 SPRING 2006 MANUAL FOR THE UNIFORM FINAL EXAMINATION

BARUCH COLLEGE MATH 2003 SPRING 2006 MANUAL FOR THE UNIFORM FINAL EXAMINATION BARUCH COLLEGE MATH 003 SPRING 006 MANUAL FOR THE UNIFORM FINAL EXAMINATION The final examination for Math 003 will consist of two parts. Part I: Part II: This part will consist of 5 questions similar

More information

GRAPHS IN ECONOMICS. Appendix. Key Concepts. Graphing Data

GRAPHS IN ECONOMICS. Appendix. Key Concepts. Graphing Data Appendix GRAPHS IN ECONOMICS Key Concepts Graphing Data Graphs represent quantity as a distance on a line. On a graph, the horizontal scale line is the x-axis, the vertical scale line is the y-axis, and

More information

The Trout Pond Revisited

The Trout Pond Revisited The Trout Pond Revisited A. MATERIALS NEEDED Worksheet, calculator, ruler B. OBJECTIVE The student will use the knowledge already gained concerning the calculations of slopes of lines to find average and

More information

Calculus for Business Economics Life Sciences and Social Sciences 13th Edition Barnett SOLUTIONS MANUAL Full download at:

Calculus for Business Economics Life Sciences and Social Sciences 13th Edition Barnett SOLUTIONS MANUAL Full download at: Calculus for Business Economics Life Sciences and Social Sciences 1th Edition Barnett TEST BANK Full download at: https://testbankreal.com/download/calculus-for-business-economics-life-sciencesand-social-sciences-1th-edition-barnett-test-bank/

More information

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Price

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Price Orange Juice Sales and Prices In this module, you will be looking at sales and price data for orange juice in grocery stores. You have data from 83 stores on three brands (Tropicana, Minute Maid, and the

More information

Using derivatives to find the shape of a graph

Using derivatives to find the shape of a graph Using derivatives to find the shape of a graph Example 1 The graph of y = x 2 is decreasing for x < 0 and increasing for x > 0. Notice that where the graph is decreasing the slope of the tangent line,

More information

This method uses not only values of a function f(x), but also values of its derivative f'(x). If you don't know the derivative, you can't use it.

This method uses not only values of a function f(x), but also values of its derivative f'(x). If you don't know the derivative, you can't use it. Finding Roots by "Open" Methods The differences between "open" and "closed" methods The differences between "open" and "closed" methods are closed open ----------------- --------------------- uses a bounded

More information

Best Reply Behavior. Michael Peters. December 27, 2013

Best Reply Behavior. Michael Peters. December 27, 2013 Best Reply Behavior Michael Peters December 27, 2013 1 Introduction So far, we have concentrated on individual optimization. This unified way of thinking about individual behavior makes it possible to

More information

Handout to accompany Worksheet #1

Handout to accompany Worksheet #1 Handout to accompany Worksheet #1 Situation: The graph below is distance vs. time for a rocket car traveling on the rocket car freeway. 6 5 4 distance 3 (in miles) 2 1 1 2 3 4 5 6 7 time (in minutes) 1

More information

Note 1: Indifference Curves, Budget Lines, and Demand Curves

Note 1: Indifference Curves, Budget Lines, and Demand Curves Note 1: Indifference Curves, Budget Lines, and Demand Curves Jeff Hicks September 19, 2017 Vancouver School of Economics, University of British Columbia In this note, I show how indifference curves and

More information

Grade 7: Chapter 1 Practice Test & Vocabulary Review

Grade 7: Chapter 1 Practice Test & Vocabulary Review Name: Date: Class: Grade 7: Chapter 1 Practice Test & Vocabulary Review 1) Find the unit rate: breaks in hours 2) Find the unit price: for CDs 3) During Tracy s trip across the country, she traveled 2,884

More information

MLC at Boise State Lines and Rates Activity 1 Week #2

MLC at Boise State Lines and Rates Activity 1 Week #2 Lines and Rates Activity 1 Week #2 This activity will use slopes to calculate marginal profit, revenue and cost of functions. What is Marginal? Marginal cost is the cost added by producing one additional

More information

Name: Practice B Exam 2. October 8, 2014

Name: Practice B Exam 2. October 8, 2014 Department of Mathematics University of Notre Dame Math 10250 Elem. of Calc. I Name: Instructor: Practice B Exam 2 October 8, 2014 This exam is in 2 parts on 10 pages and contains 14 problems worth a total

More information

2.2 Contextualizing Linear Functions

2.2 Contextualizing Linear Functions 2.2 izing Linear Functions Last unit we defined a linear function in several different ways: A function whose graph is a straight line, A function whose rate of change is constant, or A function whose

More information

Probability. An intro for calculus students P= Figure 1: A normal integral

Probability. An intro for calculus students P= Figure 1: A normal integral Probability An intro for calculus students.8.6.4.2 P=.87 2 3 4 Figure : A normal integral Suppose we flip a coin 2 times; what is the probability that we get more than 2 heads? Suppose we roll a six-sided

More information

0 Review: Lines, Fractions, Exponents Lines Fractions Rules of exponents... 5

0 Review: Lines, Fractions, Exponents Lines Fractions Rules of exponents... 5 Contents 0 Review: Lines, Fractions, Exponents 3 0.1 Lines................................... 3 0.2 Fractions................................ 4 0.3 Rules of exponents........................... 5 1 Functions

More information

Chapter 6: Supply and Demand with Income in the Form of Endowments

Chapter 6: Supply and Demand with Income in the Form of Endowments Chapter 6: Supply and Demand with Income in the Form of Endowments 6.1: Introduction This chapter and the next contain almost identical analyses concerning the supply and demand implied by different kinds

More information

Lesson 3.3 Constant Rate of Change (linear functions)

Lesson 3.3 Constant Rate of Change (linear functions) Lesson 3.3 Constant Rate of Change (linear functions) Concept: Characteristics of a function EQ: How do we analyze a real world scenario to interpret a constant rate of change? (F.IF.7) Vocabulary: Rate

More information

11.1 Average Rate of Change

11.1 Average Rate of Change 11.1 Average Rate of Cange Question 1: How do you calculate te average rate of cange from a table? Question : How do you calculate te average rate of cange from a function? In tis section, we ll examine

More information

not to be republished NCERT Chapter 2 Consumer Behaviour 2.1 THE CONSUMER S BUDGET

not to be republished NCERT Chapter 2 Consumer Behaviour 2.1 THE CONSUMER S BUDGET Chapter 2 Theory y of Consumer Behaviour In this chapter, we will study the behaviour of an individual consumer in a market for final goods. The consumer has to decide on how much of each of the different

More information

Taxation and Efficiency : (a) : The Expenditure Function

Taxation and Efficiency : (a) : The Expenditure Function Taxation and Efficiency : (a) : The Expenditure Function The expenditure function is a mathematical tool used to analyze the cost of living of a consumer. This function indicates how much it costs in dollars

More information

t g(t) h(t) k(t)

t g(t) h(t) k(t) Problem 1. Determine whether g(t), h(t), and k(t) could correspond to a linear function or an exponential function, or neither. If it is linear or exponential find the formula for the function, and then

More information

Business Statistics 41000: Probability 3

Business Statistics 41000: Probability 3 Business Statistics 41000: Probability 3 Drew D. Creal University of Chicago, Booth School of Business February 7 and 8, 2014 1 Class information Drew D. Creal Email: dcreal@chicagobooth.edu Office: 404

More information

review 4.notebook March 20, 2014

review 4.notebook March 20, 2014 Review 4 Extreme Values Points of Inflection Justifying Pulling info from a chart Mapping f, f, f Tying it all together How do you determine when a function has a max? The first derivative changes from

More information

Additional Review Exam 1 MATH 2053 Please note not all questions will be taken off of this. Study homework and in class notes as well!

Additional Review Exam 1 MATH 2053 Please note not all questions will be taken off of this. Study homework and in class notes as well! Additional Review Exam 1 MATH 2053 Please note not all questions will be taken off of this. Study homework and in class notes as well! x 2 1 1. Calculate lim x 1 x + 1. (a) 2 (b) 1 (c) (d) 2 (e) the limit

More information

Linear Modeling Business 5 Supply and Demand

Linear Modeling Business 5 Supply and Demand Linear Modeling Business 5 Supply and Demand Supply and demand is a fundamental concept in business. Demand looks at the Quantity (Q) of a product that will be sold with respect to the Price (P) the product

More information

Solutions for practice questions: Chapter 15, Probability Distributions If you find any errors, please let me know at

Solutions for practice questions: Chapter 15, Probability Distributions If you find any errors, please let me know at Solutions for practice questions: Chapter 15, Probability Distributions If you find any errors, please let me know at mailto:msfrisbie@pfrisbie.com. 1. Let X represent the savings of a resident; X ~ N(3000,

More information

Mathematics Success Grade 8

Mathematics Success Grade 8 Mathematics Success Grade 8 T379 [OBJECTIVE] The student will derive the equation of a line and use this form to identify the slope and y-intercept of an equation. [PREREQUISITE SKILLS] Slope [MATERIALS]

More information

Notes on a Basic Business Problem MATH 104 and MATH 184 Mark Mac Lean (with assistance from Patrick Chan) 2011W

Notes on a Basic Business Problem MATH 104 and MATH 184 Mark Mac Lean (with assistance from Patrick Chan) 2011W Notes on a Basic Business Problem MATH 104 and MATH 184 Mark Mac Lean (with assistance from Patrick Chan) 2011W This simple problem will introduce you to the basic ideas of revenue, cost, profit, and demand.

More information

Introduction. What exactly is the statement of cash flows? Composing the statement

Introduction. What exactly is the statement of cash flows? Composing the statement Introduction The course about the statement of cash flows (also statement hereinafter to keep the text simple) is aiming to help you in preparing one of the apparently most complicated statements. Most

More information

Putting Things Together Part 2

Putting Things Together Part 2 Frequency Putting Things Together Part These exercise blend ideas from various graphs (histograms and boxplots), differing shapes of distributions, and values summarizing the data. Data for, and are in

More information

ASX Schools Sharemarket Game

ASX Schools Sharemarket Game The ASX charts When you spend time discovering a company s story and looking at company numbers you are using what is called fundamental analysis. Many people who invest in the sharemarket use fundamental

More information

List the quadrant(s) in which the given point is located. 1) (-10, 0) A) On an axis B) II C) IV D) III

List the quadrant(s) in which the given point is located. 1) (-10, 0) A) On an axis B) II C) IV D) III MTH 55 Chapter 2 HW List the quadrant(s) in which the given point is located. 1) (-10, 0) 1) A) On an axis B) II C) IV D) III 2) The first coordinate is positive. 2) A) I, IV B) I, II C) III, IV D) II,

More information

ECON. CHAPTER The Art and. McEachern Micro. Science of Economic Analysis. Designed by Amy McGuire, B-books, Ltd.

ECON. CHAPTER The Art and. McEachern Micro. Science of Economic Analysis. Designed by Amy McGuire, B-books, Ltd. Designed by Amy McGuire, B-books, Ltd. Micro ECON McEachern 2010-2011 1 CHAPTER The Art and Science of Economic Analysis Chapter 1 Copyright 2010 by South-Western, a division of Cengage Learning. All rights

More information

Lab 10: Optimizing Revenue and Profits (Including Elasticity of Demand)

Lab 10: Optimizing Revenue and Profits (Including Elasticity of Demand) Lab 10: Optimizing Revenue and Profits (Including Elasticity of Demand) There's no doubt that the "bottom line" is the maximization of profit, at least to the CEO and shareholders. However, the sales director

More information

Calculus Review with Matlab

Calculus Review with Matlab Calculus Review with Matlab While Matlab is capable of doing symbolic math (i.e. algebra) for us, the real power of Matlab comes out when we use it to implement numerical methods for solving problems,

More information

4.1 Exponential Functions. Copyright Cengage Learning. All rights reserved.

4.1 Exponential Functions. Copyright Cengage Learning. All rights reserved. 4.1 Exponential Functions Copyright Cengage Learning. All rights reserved. Objectives Exponential Functions Graphs of Exponential Functions Compound Interest 2 Exponential Functions Here, we study a new

More information

MLC at Boise State Logarithms Activity 6 Week #8

MLC at Boise State Logarithms Activity 6 Week #8 Logarithms Activity 6 Week #8 In this week s activity, you will continue to look at the relationship between logarithmic functions, exponential functions and rates of return. Today you will use investing

More information

SUPPLEMENTARY LESSON 1 DISCOVER HOW THE WORLD REALLY WORKS ASX Schools Sharemarket Game THE ASX CHARTS

SUPPLEMENTARY LESSON 1 DISCOVER HOW THE WORLD REALLY WORKS ASX Schools Sharemarket Game THE ASX CHARTS SUPPLEMENTARY LESSON 1 THE ASX CHARTS DISCOVER HOW THE WORLD REALLY WORKS 2015 ASX Schools Sharemarket Game The ASX charts When you spend time discovering a company s story and looking at company numbers

More information

Economics 101 Fall 2016 Answers to Homework #1 Due Thursday, September 29, 2016

Economics 101 Fall 2016 Answers to Homework #1 Due Thursday, September 29, 2016 Economics 101 Fall 2016 Answers to Homework #1 Due Thursday, September 29, 2016 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number

More information

Common Review of Graphical and Algebraic Methods

Common Review of Graphical and Algebraic Methods Common Review of Graphical and Algebraic Methods The questions in this review are in pairs. An algebraic version followed by a graph version. Each pair has the same answers. However, do them separately

More information

This appendix discusses two extensions of the cost concepts developed in Chapter 10.

This appendix discusses two extensions of the cost concepts developed in Chapter 10. CHAPTER 10 APPENDIX MATHEMATICAL EXTENSIONS OF THE THEORY OF COSTS This appendix discusses two extensions of the cost concepts developed in Chapter 10. The Relationship Between Long-Run and Short-Run Cost

More information

CHAPTER 23 - THE SHORT-RUN MACRO MODEL. PROBLEM SET 2. a.

CHAPTER 23 - THE SHORT-RUN MACRO MODEL. PROBLEM SET 2. a. CHAPTER 23 - THE SHORT-RUN MACRO MODEL PROBLEM SET 2. a. Real GDP Autonomous Consumption MPC x Disposable Income Consumption = Autonomous Consumption + (MPC x Disposable Income) $0 $30 $0 $30 $100 $30

More information

MA 162: Finite Mathematics - Chapter 1

MA 162: Finite Mathematics - Chapter 1 MA 162: Finite Mathematics - Chapter 1 Fall 2014 Ray Kremer University of Kentucky Linear Equations Linear equations are usually represented in one of three ways: 1 Slope-intercept form: y = mx + b 2 Point-Slope

More information

MATH THAT MAKES ENTS

MATH THAT MAKES ENTS On December 31, 2012, Curtis and Bill each had $1000 to start saving for retirement. The two men had different ideas about the best way to save, though. Curtis, who doesn t trust banks, put his money in

More information

Keynesian Theory (IS-LM Model): how GDP and interest rates are determined in Short Run with Sticky Prices.

Keynesian Theory (IS-LM Model): how GDP and interest rates are determined in Short Run with Sticky Prices. Keynesian Theory (IS-LM Model): how GDP and interest rates are determined in Short Run with Sticky Prices. Historical background: The Keynesian Theory was proposed to show what could be done to shorten

More information

Putting Things Together Part 1

Putting Things Together Part 1 Putting Things Together Part 1 These exercise blend ideas from various graphs (histograms and boxplots), differing shapes of distributions, and values summarizing the data. Data for 1, 5, and 6 are in

More information

Expected Value of a Random Variable

Expected Value of a Random Variable Knowledge Article: Probability and Statistics Expected Value of a Random Variable Expected Value of a Discrete Random Variable You're familiar with a simple mean, or average, of a set. The mean value of

More information

4.4 Solving Exponential Functions

4.4 Solving Exponential Functions 4.4 Solving Exponential Functions Before we can solve exponential functions, we need to make sure we can create an equation for any given form of an exponential function including a graph, description,

More information

EXPONENTIAL FUNCTIONS

EXPONENTIAL FUNCTIONS EXPONENTIAL FUNCTIONS 7.. 7..6 In these sections, students generalize what they have learned about geometric sequences to investigate exponential functions. Students study exponential functions of the

More information

Chapter 19: Compensating and Equivalent Variations

Chapter 19: Compensating and Equivalent Variations Chapter 19: Compensating and Equivalent Variations 19.1: Introduction This chapter is interesting and important. It also helps to answer a question you may well have been asking ever since we studied quasi-linear

More information

Management and Operations 340: Exponential Smoothing Forecasting Methods

Management and Operations 340: Exponential Smoothing Forecasting Methods Management and Operations 340: Exponential Smoothing Forecasting Methods [Chuck Munson]: Hello, this is Chuck Munson. In this clip today we re going to talk about forecasting, in particular exponential

More information

dollars per person; the cost is $45 for each person. dollars per person; the cost is $1 for 225 people.

dollars per person; the cost is $45 for each person. dollars per person; the cost is $1 for 225 people. Name: ate: 1 The table shows the cost of a vacation package for a given number of people. The rate of change is constant in the table. Find the rate of change. Explain what the rate of change means for

More information

Retirement Investments Insurance. Pensions. made simple TAKE CONTROL OF YOUR FUTURE

Retirement Investments Insurance. Pensions. made simple TAKE CONTROL OF YOUR FUTURE Retirement Investments Insurance Pensions made simple TAKE CONTROL OF YOUR FUTURE Contents First things first... 5 Why pensions are so important... 6 How a pension plan works... 8 A 20 year old needs to

More information

Externalities : (d) Remedies. The Problem F 1 Z 1. = w Z p 2

Externalities : (d) Remedies. The Problem F 1 Z 1. = w Z p 2 Externalities : (d) Remedies The Problem There are two firms. Firm 1 s use of coal (Z 1 represents the quantity of coal used by firm 1) affects the profits of firm 2. The higher is Z 1, the lower is firm

More information

Lecture : The Definite Integral & Fundamental Theorem of Calculus MTH 124. We begin with a theorem which is of fundamental importance.

Lecture : The Definite Integral & Fundamental Theorem of Calculus MTH 124. We begin with a theorem which is of fundamental importance. We begin with a theorem which is of fundamental importance. The Fundamental Theorem of Calculus (FTC) If F (t) is continuous for a t b, then b a F (t) dt = F (b) F (a). Moreover the antiderivative F is

More information

M14/5/MATSD/SP2/ENG/TZ2/XX. mathematical STUDIES. Wednesday 14 May 2014 (morning) 1 hour 30 minutes INSTRUCTIONS TO CANDIDATES

M14/5/MATSD/SP2/ENG/TZ2/XX. mathematical STUDIES. Wednesday 14 May 2014 (morning) 1 hour 30 minutes INSTRUCTIONS TO CANDIDATES M14/5/MATSD/SP2/ENG/TZ2/XX 22147406 mathematical STUDIES STANDARD level Paper 2 Wednesday 14 May 2014 (morning) 1 hour 30 minutes INSTRUCTIONS TO CANDIDATES Do not open this examination paper until instructed

More information

Deutsche Bank Foreign Exchange Management at Deutsche Bank

Deutsche Bank   Foreign Exchange Management at Deutsche Bank Deutsche Bank www.deutschebank.nl Foreign Exchange Management at Deutsche Bank Foreign Exchange Management at Deutsche Bank 1. Why is this prospectus important? In this prospectus we will provide general

More information

Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals.

Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals. Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals. We will deal with a particular set of assumptions, but we can modify

More information

TCM Final Review Packet Name Per.

TCM Final Review Packet Name Per. TCM Final Review Packet Name Per. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Translate the statement into a formula. 1) The total distance traveled,

More information

Penalty Functions. The Premise Quadratic Loss Problems and Solutions

Penalty Functions. The Premise Quadratic Loss Problems and Solutions Penalty Functions The Premise Quadratic Loss Problems and Solutions The Premise You may have noticed that the addition of constraints to an optimization problem has the effect of making it much more difficult.

More information

Name: Class: Date: in general form.

Name: Class: Date: in general form. Write the equation in general form. Mathematical Applications for the Management Life and Social Sciences 11th Edition Harshbarger TEST BANK Full clear download at: https://testbankreal.com/download/mathematical-applications-management-life-socialsciences-11th-edition-harshbarger-test-bank/

More information

Characterization of the Optimum

Characterization of the Optimum ECO 317 Economics of Uncertainty Fall Term 2009 Notes for lectures 5. Portfolio Allocation with One Riskless, One Risky Asset Characterization of the Optimum Consider a risk-averse, expected-utility-maximizing

More information

ANSWERS TO END-OF-CHAPTER QUESTIONS

ANSWERS TO END-OF-CHAPTER QUESTIONS CHAPTER 1 ANSWERS TO QUESTIONS CHAPTER 1 ANSWERS TO END-OF-CHAPTER QUESTIONS 2. Explain how the production possibility frontier (PPF) illustrates scarcity and, especially, the fact that in a world of scarcity,

More information

Lecture 17 Option pricing in the one-period binomial model.

Lecture 17 Option pricing in the one-period binomial model. Lecture: 17 Course: M339D/M389D - Intro to Financial Math Page: 1 of 9 University of Texas at Austin Lecture 17 Option pricing in the one-period binomial model. 17.1. Introduction. Recall the one-period

More information

STAB22 section 1.3 and Chapter 1 exercises

STAB22 section 1.3 and Chapter 1 exercises STAB22 section 1.3 and Chapter 1 exercises 1.101 Go up and down two times the standard deviation from the mean. So 95% of scores will be between 572 (2)(51) = 470 and 572 + (2)(51) = 674. 1.102 Same idea

More information

THE TRAVELING SALESMAN PROBLEM FOR MOVING POINTS ON A LINE

THE TRAVELING SALESMAN PROBLEM FOR MOVING POINTS ON A LINE THE TRAVELING SALESMAN PROBLEM FOR MOVING POINTS ON A LINE GÜNTER ROTE Abstract. A salesperson wants to visit each of n objects that move on a line at given constant speeds in the shortest possible time,

More information

The Demand for Money. Lecture Notes for Chapter 7 of Macroeconomics: An Introduction. In this chapter we will discuss -

The Demand for Money. Lecture Notes for Chapter 7 of Macroeconomics: An Introduction. In this chapter we will discuss - Lecture Notes for Chapter 7 of Macroeconomics: An Introduction The Demand for Money Copyright 1999-2008 by Charles R. Nelson 2/19/08 In this chapter we will discuss - What does demand for money mean? Why

More information

Solutions to Extra Business Problems

Solutions to Extra Business Problems Solutions to Extra Business Problems 5/28/11 1. (a).taking the derivative of C(q), we find that MC(q) = 12q + 14. Thus MC(5) = 74 - the marginal cost at a production level of 5 is 74 thousand dollars/unit.

More information

EOC Review Days 2 & 3: Linear Basics, Slope, and Intercepts

EOC Review Days 2 & 3: Linear Basics, Slope, and Intercepts Name: Date: Period: Algebra 1 Bowling, Cawthon, Fletcher, Skiles EOC Review Days 2 & 3: Linear Basics, Slope, and Intercepts 1. Find the x-intercept and the y-intercept for the function represented in

More information

POSSIBILITIES, PREFERENCES, AND CHOICES

POSSIBILITIES, PREFERENCES, AND CHOICES Chapt er 9 POSSIBILITIES, PREFERENCES, AND CHOICES Key Concepts Consumption Possibilities The budget line shows the limits to a household s consumption. Figure 9.1 graphs a budget line. Consumption points

More information

Math 234 Spring 2013 Exam 1 Version 1 Solutions

Math 234 Spring 2013 Exam 1 Version 1 Solutions Math 234 Spring 203 Exam Version Solutions Monday, February, 203 () Find (a) lim(x 2 3x 4)/(x 2 6) x 4 (b) lim x 3 5x 2 + 4 x (c) lim x + (x2 3x + 2)/(4 3x 2 ) (a) Observe first that if we simply plug

More information

We will also use this topic to help you see how the standard deviation might be useful for distributions which are normally distributed.

We will also use this topic to help you see how the standard deviation might be useful for distributions which are normally distributed. We will discuss the normal distribution in greater detail in our unit on probability. However, as it is often of use to use exploratory data analysis to determine if the sample seems reasonably normally

More information

The Binomial Distribution

The Binomial Distribution The Binomial Distribution January 31, 2019 Contents The Binomial Distribution The Normal Approximation to the Binomial The Binomial Hypothesis Test Computing Binomial Probabilities in R 30 Problems The

More information

NOTES ON CALCULUS AND UTILITY FUNCTIONS

NOTES ON CALCULUS AND UTILITY FUNCTIONS DUSP 11.203 Frank Levy Microeconomics Tutorial 1 NOTES ON CALCULUS AND UTILITY FUNCTIONS These notes have three purposes: 1) To explain why some simple calculus formulae are useful in understanding utility

More information

CV and EV. Measuring Welfare Effects of an Economic Change. ECON 483 ST in Environmental Economics

CV and EV. Measuring Welfare Effects of an Economic Change. ECON 483 ST in Environmental Economics CV and EV Measuring Welfare Effects of an Economic Change ECON 483 ST in Environmental Economics Kevin Wainwright Welfare and Economic Change Welfare is, in simple terms, the level of well-being of a group.

More information

IB Interview Guide: Case Study Exercises Three-Statement Modeling Case (30 Minutes)

IB Interview Guide: Case Study Exercises Three-Statement Modeling Case (30 Minutes) IB Interview Guide: Case Study Exercises Three-Statement Modeling Case (30 Minutes) Hello, and welcome to our first sample case study. This is a three-statement modeling case study and we're using this

More information

GE in production economies

GE in production economies GE in production economies Yossi Spiegel Consider a production economy with two agents, two inputs, K and L, and two outputs, x and y. The two agents have utility functions (1) where x A and y A is agent

More information

Chapter 6 BLM Answers

Chapter 6 BLM Answers Chapter 6 BLM Answers BLM 6 2 Chapter 6 Prerequisite Skills 1. a) 0.50, 50% 0.60, 60% 2.3, 233.3% d) 3, 300% 108 km/h 160 m/km 50 m/min 3. 1.99 m 4. a) Time Worked, t (h) Earnings, E ($) 2 30 4 60 6 90

More information

GovernmentAdda.com. Data Interpretation

GovernmentAdda.com. Data Interpretation Data Interpretation Data Interpretation problems can be solved with little ease. There are of course some other things to focus upon first before you embark upon solving DI questions. What other things?

More information

ESSENTIAL QUESTION How do you find a rate of change or a slope? Day 3. Input variable: number of lawns Output variable:amount earned.

ESSENTIAL QUESTION How do you find a rate of change or a slope? Day 3. Input variable: number of lawns Output variable:amount earned. L E S S O N 3.2 Rate of Change and Slope 8.F.4 Determine the rate of change of the function from two (x, y) values, including reading these from a table or from a graph. ESSENTIAL QUESTION How do you find

More information

35 38 point slope day 2.notebook February 26, a) Write an equation in point slope form of the line.

35 38 point slope day 2.notebook February 26, a) Write an equation in point slope form of the line. LT 6: I can write and graph equations in point slope form. p.35 What is point slope form? What is slope intercept form? Let's Practice: There is a line that passes through the point (4, 3) and has a slope

More information

Problem Set # 14. Instructions: Graph 1,

Problem Set # 14. Instructions: Graph 1, Problem Set # 14 Aggregate Demand and Aggregate Supply in the Real World Overview: In this problem set, you will apply what you know about Aggregate Demand and Aggregate Supply to real world data. In a

More information