MathsI Unit 3 21-22-Handout
MathsI Unit 3 21-22-Handout
Unit 3. FUNCTIONS
Course: Mathematics I
Vladimir Zaiats
Year 2021–2022
Definition of a function
Laffer curve
In economics, the Laffer curve,
popularised by supply-side
economist Arthur Laffer,
illustrates a theoretical
relationship between rates of
taxation and the resulting levels
of the government’s tax revenue.
The Laffer curve assumes that no
tax revenue is raised at the
extreme tax rates of 0% and
100%, and that there is a tax Source: Released to the public domain by
Lawrencekhoo
rate between 0% and 100% that
maximises government tax
revenue.
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Real functions of one variable; domain and range
Definition of a function
Types of functions and properties
Specifying the domain and the range
Operations with functions
Laffer curve
One implication of the Laffer curve is that reducing or increasing
tax rates beyond a certain point is counter-productive for raising
further tax revenue.
In the United States, conservatives have used the Laffer Curve to
argue that lower taxes may increase tax revenue.
However, the hypothetical maximum revenue point of the Laffer
curve for any given economy cannot be observed directly and can
only be estimate — such estimates are often controversial.
The Laffer curve was popularised in the United States with
policymakers following an afternoon meeting with Ford
Administration officials Dick Cheney and Donald Rumsfeld in 1974,
in which Arthur Laffer reportedly sketched the curve on a napkin
to illustrate his argument
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Real functions of one variable; domain and range
Definition of a function
Types of functions and properties
Specifying the domain and the range
Operations with functions
Definition of a function
The Laffer curve relates each value of one variable (tax rate) to a
definite value of another variable (tax revenue).
If an electrocardiogram (ECG) is taken, a doctor observes a rule
showing electrical activity as a function of time.
In this way, one can give the following definition.
Definition 1
Let D ⊆ R. A function f of a real-valued variable x is a rule
assigning to each value x ∈ D a unique real number y = f (x ).
The set D is called the domain of the function f . The set of all
possible values y = f (x ) obtained when x runs over the domain D,
is called the range of the function f .
Definition of a function
Definition of a function
Example 1
The total euro cost of producing x units of a product is given by
the formula: √
C (x ) = 100x x + 500,
for each nonnegative integer x .
Find the cost of producing 16 units.
Suppose the firm produces a units; find the increase in the cost
from producing one additional unit.
Definition of a function
The cost of producing a units is:
√
C (a) = 100 · a · a + 500.
Df = [−2, +∞).
Graphs of functions
Any vertical line intersects each of these graphs at not more than
one point
Graphs of functions
Here you have 3 examples of graphs that DO NOT represent
functions
Find those vertical lines that have more than one intersection with
each of these graphs
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Real functions of one variable; domain and range
Definition of a function
Types of functions and properties
Specifying the domain and the range
Operations with functions
Linear functions
Definition 2
A linear function is defined by the following expression:
f (x ) = ax + b (1)
Linear functions
Take an arbitrary value of x ∈ R. Then
Important
The constant a measures the change in the value of the linear
function when x increases by one unit.
Linear functions
Example 3
Find and interpret the slopes of the following straight lines.
(a) The cost function for US Steel Corp. during the period
1917–1938 was estimated to be C = 55.73x + 182, 100, 000,
where C is the total cost in dollars per year, and x is the
production of steel in tons per year.
(b) The demand function for rice in India, for the period
1949–1964, was estimated to be q = −0.15p + 0.14, where p
is price per kilo in Indian rupees, and q is the annual
consumption per person, measured in kilos.
Linear functions
Solution. (a) C = 55.73x + 182, 100, 000.
The slope is 55.73 meaning that if production increases by one ton,
then the cost increases by $55.73.
(b) q = −0.15p + 0.14.
The slope is −0.15 telling us that if the price increases by one
Indian rupee per kilo, then the quantity demanded decreases by
0.15 kilos per year.
The intercept can often be interpreted, too. In Example 3(a) it
would mean the cost of US Steel Corp. if no steel is produced.
On the other hand, in Example 3(b) a similar interpretation does
not make much sense: if the price for rice were 0 rupees, it would
be difficult to imagine that the annual rice consumption would
have been of only 0.14 kilos per person!
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Important examples of functions
Real functions of one variable; domain and range
Linear functions
Types of functions and properties
Graphical solution of linear systems
Operations with functions
Important functions
Linear functions
y − y1 y2 − y1
= . (2)
x − x1 x2 − x1
Linear functions
x = x0 . (4)
y = y0 . (5)
Linear functions
x − x0 y − y0
= . (6)
α β
α (x − x0 ) + β (y − y0 ) = 0. (7)
Linear functions
Example 4
Find the equation of the line passing through ( −1 , 3 ) and
( 5 , −2 ).
Linear functions
Example 5
Find the equation of the line through ( −2 , 3 ) with slope −4 .
Then find the y -intercept and the point at which this line
intersects the X -axis.
Linear functions
Example 6
Solve each of the following systems of linear equations graphically:
( (
x +y =5 3x + y = −7
(a) (b)
x − y = −1 x − 4y = −2
( (
3x + 4y = 2 3x + 4y = 4
(c) (d)
6x + 8y = 24 6x + 8y = 8
Solution of Example 6.
(a) As we just have said, the line
x + y = 5 runs through the
points (0, 5) and (5, 0), while the
line x − y = −1 passes through
the points (0, 1) and (−1, 0).
We plot these lines and find that
they intersect at the point (2, 3)
giving a solution to the system:
x = 2, y = 3 Source: K. Sydsæter et al. Essential Mathematics
for Economic Analysis
Important functions
We give a brief summary of other important functions.
Let r ∈ R be an arbitrary constant.
Definition 3 (Power function)
f (x ) = x r , x > 0. (8)
f (x ) = ax , x ∈ R. (9)
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Important examples of functions
Real functions of one variable; domain and range
Linear functions
Types of functions and properties
Graphical solution of linear systems
Operations with functions
Important functions
Important functions
Power functions
Exponential functions
Logarithmic functions
Composite functions
Suppose the demand for a commodity is a function f of its price p.
Suppose that price p is not constant, but depends on time t.
Then it is natural to regard f as a function of t.
In general, if y is a function of u, and u is a function of x , then y
can be regarded as a function of x .
Definition 8 (Composite function)
We call y a composite function of x. If we denote the two
functions involved by f and g, with y = f (u) and u = g(x ), then
we can replace u by g(x ) and so write y in the form
y (x ) = f (g(x )).
Note that when computing y , we first apply g to x to obtain g(x ),
and then we apply f to g(x ). Here, g(x ) is called the kernel, or
interior function, while f is called the exterior function.
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Real functions of one variable; domain and range Mathematical operations with functions
Types of functions and properties Composite functions
Operations with functions Inverse functions
Composite functions
Composite functions
Composite functions
Example 7
Suppose that g(x ) = 2 − x 2 and f (u) = u 3 . Calculate the
compositions f ◦ g and g ◦ f .
Composite functions
When we have (g ◦ f )(x ) = g(f (x )), we first take x and apply the
function f to x : f (x ) = x 3 .
Then we take the result and apply the function g which squares
the argument and subtracts it from 2.
The result of this second step will be
(g ◦ f )(x ) = f (g(x )) = 2 − (x 3 )2 = 2 − x 6 .
In this way, we indeed see that the compositions f ◦ g and g ◦ f
lead to two quite different results.
Composite functions
Example 8
Suppose that g(x ) = (x − 1)/(3 − x ) and f (u) = ln u. Calculate
the composition f ◦ g. What is the domain of the composite
function f ◦ g?
Composite functions
x −1
The composite function (f ◦ g)(x ) = ln involves a
3−x
logarithm.
Then for calculating the domain of this function one should require
the logarithm to contain a strictly positive argument:
x −1
> 0.
3−x
This inequality was solved in Example 5 of Unit 1. The solution
was x ∈ (1, 3).
Therefore Df ◦g = (1, 3).
Composite functions
Example 9
u
Suppose that g(x ) = |x − 2| and f (u) = 1−u . Calculate the
composition f ◦ g. What is the domain of the composite function
f ◦ g?
Composite functions
|x − 2|
The composite function (f ◦ g)(x ) = contains a
1 − |x − 2|
fraction.
Then for calculating the domain of this function one should require
the denominator not to be equal to zero:
x − 2 6= +1 x 6= 3
" "
6 0 ⇐⇒ |x −2| =
1−|x −2| = 6 1 ⇐⇒ ⇐⇒
x − 2 6= −1 x 6= 1
Inverse functions
Inverse functions
Inverse functions
This equation gives us directly the price P corresponding to a
given output D.
For example, if D = 10, then
Inverse functions
Inverse functions
f (−1) (y ) = x ⇐⇒ y = f (x ), x ∈ A, y ∈ B. (12)
Inverse functions
Calculating the inverse function
Suppose that a function y = f (x ), x ∈ A, is invertible.The inverse
function f (−1) is calculated in the following two steps:
1 Isolate x from the equality y = f (x ), that is, solve y = f (x )
for x .
2 Interchange x ↔ y in the expression obtained in Step 1. What
you get is the formula giving the inverse function
y = f (−1) (x ), x ∈ B.
Example 10
Find inverse functions to the following ones:
√
3 3x + 1
(a) y = 2x + 5; (b) y = x + 1; (c) y = .
x −4
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Real functions of one variable; domain and range Mathematical operations with functions
Types of functions and properties Composite functions
Operations with functions Inverse functions
Inverse functions
y −5
Step 1: y = 2x + 5 ⇐⇒ 2x = y − 5 ⇐⇒ x = .
2
x −5
Step 2: [x ↔ y ] y= .
2
x −5
Answer: f (−1) (x ) = .
2
Inverse functions
⇐⇒ x = y 3 − 1.
Step 2: [x ↔ y ] y = x 3 − 1.
Answer: f (−1) (x ) = x 3 − 1.
In (*), we have raised both sides of the equality to power 3
Inverse functions
(c) We obtain
3x + 1
Step 1: y= ⇐⇒ y (x − 4) = 3x + 1 ⇐⇒
x −4
⇐⇒ y x − 3x = 4y + 1 ⇐⇒ x (y − 3) = 4y + 1 ⇐⇒
4y + 1
⇐⇒ x = .
y −3
4x + 1
Step 2: [x ↔ y ] y = .
x −3
4x + 1
Answer: f (−1) (x ) = .
x −3
Source: Released into the public domain by its author, Jim.belk at English Wikipedia
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