Business Mathematics

Tutorial 2 – Exercises
Instruction

See the instructions for week 1 on finding a good strategy for preparing the exercises and the meaning
of the symbols and .

3A Derivatives

Q1 The figure shows the graph of a function 𝑓. Find the values of 𝑓(3) and 𝑓 ′ (3).

𝑓(3) = 2; 𝑓 ′ (3) = − 3 Ans

1

Q2 The figure shows the graph of a function 𝑓. Determine the sign of the derivative 𝑓 ′ (𝑥) at each
of the four points 𝑎, 𝑏, 𝑐, and 𝑑.

𝑓 ′ (𝑎) < 0, 𝑓 ′ (𝑏) = 0, 𝑓 ′ (𝑐) > 0, 𝑓 ′ (𝑑) < 0 Ans

3
Q3 Find the derivative of the following: 3
√𝑥
𝑥 √𝑥
3 − Ans
1

𝑑 1
Q4 Compute the following: 𝑑𝐴 (𝐴2 𝐴)
√
2𝐴3 √𝐴
Ans
−5

𝑥+1
Q5 Differentiate the function defined by the formula: 𝑥5

BUSM 1 Tutorial 2
 𝑥6
− Ans
4𝑥+5

Q6 If 𝐷(𝑃) denotes the demand for a product when the price per unit is 𝑃, then the revenue function
𝑅(𝑃) is given by 𝑅(𝑃) = 𝑃 ⋅ 𝐷(𝑃). Find an expression for 𝑅 ′ (𝑃).
𝑅 ′ (𝑃) = 𝐷(𝑃) + 𝑃𝐷 ′ (𝑃) Ans

Q7 Compute 𝑑𝑥 ⁄𝑑𝑝 for the demand function 𝑥 = 𝑏 − √𝑎𝑝 − 𝑐, where 𝑎, 𝑏, and 𝑐 are positive
constants, while 𝑥 is the number of units demanded, and 𝑝 is the price per unit, with 𝑝 > 𝑐⁄𝑎.
√𝑎𝑝−𝑐
= −2 𝑑𝑝
Ans
𝑎 𝑑𝑥

1⁄2
Q8 Suppose that 𝐶 = 20𝑞 − 4𝑞(25 − 12𝑥) , where 𝑞 is a constant and 𝑥 < 50. Find 𝑑𝐶 ⁄𝑑𝑥.
2
ට25− 𝑥
1 𝑑𝑥
= Ans
𝑞 𝑑𝐶

Q9 Find the first-order derivative of: 𝑦 = 𝑥 3 𝑒 𝑥

𝑑𝑥
= (3 + 𝑥)𝑥 2 𝑒 𝑥 Ans
𝑑𝑦

2 −3𝑥+1
Q10 Find the first and second-order derivatives of: 𝑦 = 5𝑒 2𝑥
and 𝑑𝑥 2 = 5ሾ16𝑥 2 − 24𝑥 + 13ሿ𝑒 2𝑥
𝑑𝑥
= (20𝑥 − 15)𝑒 2𝑥 Ans
2 −3𝑥+1 𝑑2 𝑦 2 −3𝑥+1 𝑑𝑦

Q11 Compute the first and second-order derivatives of: 𝑦 = 𝑥 2 − 2 ln 𝑥

= 2𝑥 − 𝑥 and 𝑑𝑥 2 = 2 + 𝑥 2 𝑑𝑥
Ans
2 𝑑2 𝑦 2 𝑑𝑦

3B Extreme values

Q1 Find possible extreme points for 𝑓(𝑥) = 𝑒 3𝑥 − 6𝑒 𝑥 , 𝑥 ∈ (−∞, ∞), and investigate their nature
𝑓(𝑥) has a minimum at 𝑥 = 2 ln 2 and no maximum, the minimum is 𝑓 (2 ln 2) = −4√2 Ans
1 1

Q2 In an economic model, the proportion of families whose income is no more than 𝑥, and who
have a home computer, is given by
𝑝(𝑥) = 𝑎 + 𝑘(1 − 𝑒 −𝑐𝑥 ) (𝑎, 𝑘, and 𝑐 are positive constants)
′ (𝑥)
Determine 𝑝 and 𝑝′′ (𝑥). Does 𝑝(𝑥) have a maximum? Sketch the graph of 𝑝. Which
restraints are needed for 𝑎 and 𝑘 to have 0 ≤ 𝑝(𝑥) ≤ 1?
See figure A8.3.4 in the book, p.735
𝑝′ (𝑥) = +c𝑘𝑒 −𝑐𝑥 > 0; 𝑝′′ (𝑥) = −c 2 𝑘𝑒 −𝑐𝑥 ; there exists no maximum! Ans

Q3 Suppose the tax 𝑇 a person pays on income 𝑤 is given by 𝑇 = 𝑎(𝑏𝑤 + 𝑐)𝑝 + 𝑘𝑤,
where 𝑎, 𝑏, 𝑐, and 𝑘 are positive constants, and 𝑝 > 1. Then the average tax rate is

BUSM 2 Tutorial 2
 𝑇 (𝑏𝑤 + 𝑐)𝑝
𝑇̅ =
=𝑎 +𝑘
𝑤 𝑤
Find the value of income that minimizes the average tax rate. Do not investigate if the stationary
point is a minimum indeed.
𝑤 = 𝑏𝑝−𝑏 Ans
𝑐

4A Partial derivatives

Q1 Find 𝜕𝑧⁄𝜕𝑥 and 𝜕𝑧⁄𝜕𝑦 for the following: 𝑧 = 𝑥 3 𝑦 4

= 3𝑥 2 𝑦 4 and 𝜕𝑥 = 4𝑥 3 𝑦 3 𝜕𝑥
Ans
𝜕𝑧 𝜕𝑧

Q2 Find 𝜕𝑧⁄𝜕𝑥 and 𝜕𝑧⁄𝜕𝑦 for the following: 𝑧 = 𝑒 𝑥𝑦

= 𝑦𝑒 𝑥𝑦 and 𝜕𝑦 = 𝑥𝑒 𝑥𝑦 𝜕𝑥
Ans
𝜕𝑧 𝜕𝑧

Q3 (Sydsæter & Hammond, 5/E, 11.2.4.b)

Find all first- and second-order partial derivatives for the following: 𝑧 = 𝑥 3 𝑦 2
= 3𝑥 2 𝑦 2, 𝜕𝑦 = 2𝑥 3 𝑦, 𝜕𝑥 2 = 6𝑥𝑦 2 , 𝜕𝑦2 = 2𝑥 3 , 𝜕𝑥𝜕𝑦 = 𝜕𝑦𝜕𝑥 = 6𝑥 2 𝑦
𝜕𝑥
Ans
𝜕2 𝑧 𝜕2 𝑧 𝜕2 𝑧 𝜕2 𝑧 𝜕𝑧 𝜕𝑧

Q4 Suppose that if a household consumes 𝑥 units of one good and 𝑦 units of a second good, its
satisfaction is measured by the function 𝑠(𝑥, 𝑦) = 2 ln 𝑥 + 4 ln 𝑦. Suppose that the household
presently consumes 20 units of the first good and 30 units of the second.
a. What is the approximate increase in satisfaction from consuming one extra unit of the first
good?
b. What is the approximate increase in satisfaction from consuming one extra unit of the second
good?
a. 10; b. 15 Ans
2 1

4B Applications of single-variable calculus

Q1 Prove that
1
√1 + 𝑥 ≈ 1 + 2𝑥
for 𝑥 close to 0, and illustrate this approximation by drawing the graphs of 𝑦 = 1 + 12𝑥 and 𝑦 =
√1 + 𝑥 in the same coordinate system.
Ans

Q2 Find the elasticity of the function given by the following formula: 3𝑥 −3

BUSM 3 Tutorial 2
 −3 Ans

Q3 Show that El𝑥 (𝐴𝑓(𝑥)) = El𝑥 𝑓(𝑥) (multiplicative constants vanish)

𝑓(𝑥) 𝑑𝑥 𝐴𝑓(𝑥) 𝑑𝑥 𝐴𝑓(𝑥) 𝑑𝑥
= El𝑥 𝑓(𝑥) = = El𝑥 (𝐴𝑓(𝑥)) = Ans
𝑥 𝑑𝑓(𝑥) 𝑥 𝐴𝑑𝑓(𝑥) 𝑥 𝑑(𝐴𝑓(𝑥))

Q4 Find the partial elasticities of 𝑧 w.r.t. 𝑥 and 𝑦 in the following case: 𝑧 = 𝑥 2 𝑦 5 .

2 and 5 Ans

Q5 Find the linear approximation about (0,0) for the following: 𝑓(𝑥, 𝑦) = 𝑒 𝑥 ln(1 + 𝑦).
𝑓(𝑥, 𝑦) ≈ 𝑦 Ans

Q6 Find the relative rate of growth for the function 𝑓(𝑥) = 𝑒 3𝑥

3 Ans

Old exam questions

Q1 22 March 2018, Q1e

𝑥2 𝑑𝑓
For 𝑥 > 1, it is given that 𝑓(𝑥) = ln 𝑥. Find 𝑑𝑥.
or ln 𝑥 − (ln 𝑥)2 (2 − ln 𝑥)
ln 𝑥
Ans
𝑥 2𝑥 𝑥 1

Q2 22 March 2018, Q3c

For transporting a cargo of 𝑐 tonnes over a distance of 𝑑 kilometers, transport by ship costs
𝐶 = 200 + 10𝑐𝑑 + 2𝑑 + 5𝑐
Find a linear approximation of 𝑓(𝑐) = 𝐶(𝑐, 𝑑∗ ) around (𝑐 ∗ , 𝑑∗ ) = (10,100).
𝑓(𝑐) ≈ 400 + 1005 ⋅ 𝑐 Ans

Q3 23 March 2017, Q1c

𝜕𝑔
Given is the function 𝑔(𝑥, 𝑦) = 𝑥 √𝑦 . Find 𝜕𝑥 .
√𝑦𝑥 (√𝑦−1) Ans

Q4 26 October 2016, Q2a

For a certain product, demand 𝐷 > 0 is given as 𝐷(𝑝, 𝑓) = 7𝑒 −3𝑝 𝑒 −2𝑓 , where 𝑝 > 0 is the price, and
𝑓 > 0 is the import fee. The present price is 4, while the present import fee is 1. Find the actual value
of the partial elasticity of the demand with respect to the import fee.
−2 Ans

Source

Many questions are taken from or adapted from Sydsæter, Knut, Peter Hammond, and Arne Strøm
(2016), Essential Mathematics for Economic Analysis, fifth Edition, Pearson Education.

BUSM 4 Tutorial 2