Business Mathematics

Mr Bupe Kolosa

Course code(MSM 192)

School of Natural and Applied Sciences (SNAS)
Mulungushi University (MU)

April 13, 2023

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Overview

1 Introduction
Introduction
Integration as a reverse of differentiation
The Power Rule for Integration

2 The Definite Integral and the Area Under the Curve

The approximate area under a curve
Consumer and Producer Surplus

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 Introduction Introduction

Integral Calculus

We have learnt how to find the derivative of a given function. But

given that a function is a derivative of another function, is it possible
to find this other function?

Integration can generally be defined as the reverse of differentiation.

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 Introduction Integration as a reverse of differentiation

Integration as a reverse of differentiation

when a function is differentiated then integrated, you will end up with
the same function back again. This statement is written

Z
[d(function)] = function
Z
d[( function)] = function

Let y = f (x) + c, the operation ‘integration w.r.t. x is denoted by

enclosing
R the function to be integrated between the integration
symbol and dx.

Note the inclusion of the constant c. The derivative of a constant

term is zero, so when integrating, there is a possibility that the
function (which is differentiated) may have contained a non-zero
constant term.
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 Introduction Integration as a reverse of differentiation

Integration as the reverse of differentiation

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 Introduction The Power Rule for Integration

Deduce the power rule for integration

We can use the example below to demonstrate how the power rule of
integration can be deduced.

X n+1
Z
x n dx = + C,
n+1
1 Always start by simplifying where possible.
2 Write the power function ’on line’, so that you may state the power n
clearly.
3 Apply the power rule for integration:
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 Introduction The Power Rule for Integration

Examples
Integrate the following functions:
1

x4
2
x4
x2
3
1
x4
4
√
x
5
1
√
x3

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 Introduction The Power Rule for Integration

The minus one exception to the power rule

The power rule applies for any value of n except n = –1. If n = –1 then
n + 1 = –1 + 1 = 0

Division by zero is not defined.so the power rule cannot be used in this
case, therefore integrating x −1 is
Z Z
−1 1
x dx = dx = ln(x) + c
x

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 Introduction The Power Rule for Integration

The integral of a constant term

The integral of a constant is the constant multiplied by the independent

variable. Z
K dx = Kx + c

You can use the power rule to deduce the integral of a constant term.

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 Introduction The Power Rule for Integration

Working rules for integration

The sum or difference of several power functions is integrated by

integrating each function separately:
Z Z Z
[f (x) ± g (x)]dx = f (x)dx ± g (x)dx

The integral of a constant multiplied by a variable term is the

constant multiplied by the integral of the variable term:
Z Z
kf (x)dx = k f (x)dx

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 Introduction The Power Rule for Integration

Examples

Integrate the following;

1
1
x2 +
x2
2

5x − 3x 2
3
x + 5x 2
x2

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 Introduction The Power Rule for Integration

Integration of the Natural Exponential Function

The number e is also a natural number in calculus. It is the only function

which does not change when differentiated or integrated.

Therefore
Z
e x dx = e x + c

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 Introduction The Power Rule for Integration

Examples

Integrate
1

3e x + 5
2
e t + 2e t
et

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 Introduction The Power Rule for Integration

Using substitution to integrate functions of linear functions

Consider the functions

x 10 , x and (5x − 2)10 , (5x − 2)

To integrate functions of linear functions, consider the effect of replacing

the linear function by a single variable, say u.

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 Introduction The Power Rule for Integration

Examples

Use the method of substitution to integrate the following:

1 Z
(5x − 2)10 dx

2 Z
1
dx
(5x − 2)
3 Z
e (5x−2) dx

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 Introduction The Power Rule for Integration

Soln

(u)10 dx, and dx needs to be

R
1 Let u = 5x–2, so the integral becomes
expressed in terms of du.

Use the substitution equation to deduce an expression for dx in terms

of du by differentiating w.r.t. x, then solving for dx.
1
dx = du
5

Z Z
1
(u)10 dx → (u)10 du
5
1
Z
1u 11 (5x − 2)11
(u)10 du = +c = +c
5 5 11 55

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

The approximate area under a curve

The area under the curve between x = a and x = b is approximately equal

to the sum of the areas of the narrow rectangles, each of width ∆x, but
various heights, y1 , y2 , ..., yn−1 .
i=b
X
Area = yi ∆x
i=a
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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Cont...

Evaluating the integral between the limits x = a and x = b is carried out

as follows.
R x=b x=b
Net area = x=a f (x)dx = F (x) x=a
= F (b) − F (a).

where F (b) is found by substituting x = b into F (x). F (a) is found by

substituting x = a into F (x).

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Examples

Evaluate
1
Z x=3
(x + 2)dx
x=1
2
Z x=4
x 2 dx
x=0
3
Z x=2
40e 2x−3 dx
x=0
4
Z x=3
(1 − e −0.5x )dx
x=0

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Soln

1
x=3
x2
Z
x=3
(x + 2)dx = + 2x + c
x=1 2 x=1
= F (3) − F (1)
= (10.5 + c) − (2.5 + c) = 8

3
Z x=2
40 2x−3 x=2
40e 2x−3 dx = e
x=0 2 x=0
40 2(2)−3
= [e − e 2(0)−3 ]
2
= 20(2.7183 − 0.0498) = 53.37

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Definite integration gives the net area contained between

the curve and the x-axis

In the above examples, the area calculated above the x-axis, but when
integration is used to calculate the area, the following cases arise:

Areas above the x-axis are evaluated with a positive sign.

Areas below the x-axis are evaluated with a negative sign.

It follows that when integration is used to calculate an area which is

partially above the x-axis and partially below the x-axis, the numerical
answer is the net area, the sum of the positive and negative areas.

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Examples

Sketch the function f (x) = x 2 –1. Show that the graph crosses the x-axis
at x = 1. Use integration to determine
1 the area between x = 0 and x = 1,
2 the area between x = 1 and x = 2,
3 the area between x = 0 and x = 2.

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Soln
1

x=1
x3
Z  
x=1
2
Area = (x − 1)dx = −x = F (1) − F (0)
x=0 3 x=0
   
1 0 2
= −1 − −0 =−
3 3 3
2
Z x=2  3 
x x=2
Area = (x 2 − 1)dx = −x = F (2) − F (1)
3 x=1
x=1   
8 1 4
= −2 − −1 =−
3 3 3
3

x=2
x3
Z  
x=2
2
Area = (x − 1)dx = −x = F (2) − F (0)
3 x=0
x=0   
8 0 2
= −2 − −0 =−
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Business Math 3 April 13, 2023 23 / 32
 The Definite Integral and the Area Under the Curve The approximate area under a curve

Evaluation of the definite integral when F (x) = In|x|

Z
1
dx = In(x) + c
x
where |x| is the absolute value of x, for example In|–2| = In(2) = 0.3010.

In definite integration, if the log of a negative number arises, the negative

sign is ignored.

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Examples

1
Z x=−1
5
dx
x=−2 x
2
Z x=1
1
(x 2 + )dx
x=0.2 x

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 The Definite Integral and the Area Under the Curve The approximate area under a curve

Soln
1
Z x=−1 Z x=−1
5 51
dx = dx
x=−2 x x=−2 1x
x=−1
= 5In|x|
x=−2
= F (−1) − F (−2) = 5In| − 1| − 5In| − 2|
= 0 − 3.4657 = −3.4657
1
x=1
x3
Z
1 x=1
(x 2 + )dx = + In|x|
x=0.2 x 3 x=0.2
= F (1) − F (0.2)
 3
(0.2)3
  
(1)
= + In|1| − + In|0.2|
3 3
= 0.3333 + 1.6068 = 1.9401
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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Consumer Surplus

Consumer surplus is the difference between the expenditure a consumer is

willing to make on successive units of a good, from Q = 0 to Q = Q0 , and
the actual amount spent on Q0 units of the good at the market price of P0
per unit:

In general, consumer surplus at P = P0 (corresponding quantity Q0 ) is

Area under the curve − area of rectangle

Z Q=Q0
= (demand function) dQ − P0 Q0
Q=0

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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Example

Calculate the consumer surplus for

1 the demand function P = 60–2Q when the market price is P0 = 12,
100
2 the demand function P = (Q+2) when the market price is P0 = 20.
In each case graph the demand function and shade in the consumer
surplus.

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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Soln
1 Substitute P0 = 12 into the equation for the demand curve to find
corresponding value of Q0 :
12 = 60–2Q → 2Q = 60–12 → Q0 = 24
Therefore P0 Q0 = 12x24 = 288. Sketch the function, and use the
Consumer surplus equation to find the area.
Area under the curve − area of rectangle
Z Q=Q0
= (demand function) dQ − P0 Q0
Q=0
Z Q=24
= (60 − 2Q)dQ − P0 Q0
Q=0
24
= (60Q − Q 2 ) − (12 × 24)
0
= [60(24) − (24)2 ] − [60(0) − (0)2 ] − (12 × 24)
= 576
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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Producer Surplus

The producer surplus is the difference between the revenue the producer
receives for Q0 units of a good when the market price is P0 per unit and
the revenue that she was willing to accept for successive units of the good
from Q = 0 to Q = Q0 :

Area of rectangle − Area under the curve

Z Q=Q0
= P0 Q0 − demand function dQ
Q=0

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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Example

Sketch the supply functions

1

P = 20 + 4Q
2

P = Q 2 + 6Q
In each case calculate the producer surplus at Q = 4. Shade the producer
surplus on each sketch.

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 The Definite Integral and the Area Under the Curve Consumer and Producer Surplus

Soln
1 Substitute Q0 = 4 into the equation for the supply curve to find
corresponding value of P0 :
P0 = 20 + 4Q → P = 20 + 4(16) → P0 = 36
Therefore P0 Q0 = 36x4 = 144. Sketch the function, and use the
Producer surplus equation to find the area.
Area of rectangle − Area under the curve
Z Q=Q0
= P0 Q0 − demand function dQ
Q=0
Z Q=24
= P0 Q0 − (20 + 4Q)dQ
Q=0
4
= (36 × 4)(20Q − 2Q 2 )
0
= 144 − [20(4) + 2(4)2 ] − [20(0) − 2(0)2 ]
= 32
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