Topic 4: Indices and

Logarithms
Jacques Text Book (edition 4):
Section 2.3 & 2.4
Indices & Logarithms
 Indices
• Definition - Any expression written as an is
defined as the variable a raised to the power of
the number n
• n is called a power, an index or an exponent of a

• Example - where n is a positive whole number,

a1 = a
a2 = a  a
a3 = a  a  a
an = a  a  a  a……n times
Indices satisfy the following rules:
1) where n is positive whole number
an = a  a  a  a……n times
• e.g. 23 = 2  2  2 = 8

2) Negative powers…..
1
a-n = a n
1
e.g. a-2 = a2

• e.g. where a = 2 1 1
1
• 2-1 = or 2-2 = 2  2  4
2
• 3) A Zero power
a0 = 1
e.g. 80 = 1

• 4) A Fractional power

1
a  an n

1
e.g.
9 2 9  9 3
2

1
83 382
All indices satisfy the following rules
in mathematical applications
Rule 1 am. an = am+n
e.g. 22 . 23 = 25 = 32
e.g. 51 . 51 = 52 = 25
e.g. 51 . 50 = 51 = 5

a m
Rule 2  a m n
23
an e . g .1  2 3 2
 21
2
2 2

23
e . g .2  2 3 0
 2 3
8
2 0
 Rule 2 notes…
________________________________
note: if m = n,
am m–n 0
then a n =a =a =1 2 3
e.g . 2 2 3 3 0
1
2 3
________________________________
m
a
note: a
n = am – (-n) = am+n
23
e .g . 2  23( 2 )  25  32
________________________________
2
m
a 1
-m – n
note: a
= a n = a
mn
_________________________________
23 1 1
e .g .  2  3 2
 2 5
 
22 25 32
Rule 3
(am)n = am.n
e.g. (23)2 = 26 = 64

Rule 4
an. bn = (ab)n
e.g. 32  42 = (34)2 = 122 = 144

Likewise,
n
an a
n   if b0
b b
e.g.
2
62  6 
2
    22  4
3  3 
Simplify the following using the
above Rules:
1/4 3/4
1) b = x x
2 3/2
2) b = x  x
3/4 8
3) b = (x )
2 3
x y
4) b = x 4 y
These are practice questions for you to try at home!
 Logarithms
A Logarithm is a mirror image of an
index
n
If m = b then logbm = n
The log of m to base b is n

If y = xn then n = logx y
The log of y to the base x is n

e.g.
1000 = 103 then 3 = log10 1000

0.01 = 10-2 then –2 = log10 0.01

 Evaluate the following:
1) x = log39
2) x = log42
the log of m to base b = n then m = bn the log of m to base b = n then m = bn
the log of 9 to base 3 = x then the log of 2 to base 4 = x then
x
 9 = 3x
 2=4
1/2
 9=33=3 2  2 = 4 = 4
x = 1/2
 x=2
The following rules of logs apply
1) logb(x  y) = logb x + logb y
eg. log10  2  3  log10 2  log10 3

 x 
2) log 
b  y



= logb x – logb y
 3
log 10    log 10 3  log 10 2
eg.  2

3) logb xm = m. logb x
2
e.g. log10 3  2 log10 3
From the above rules, it follows that
(1) logb 1 = 0
1x1
(since => 1 = b , )hence x must=0)
e.g. log101=0

and therefore,
 1
logb x = - logb x
1
e.g. log10 ( /3) = - log103
 And……..
(2) logb b = 1
1x
(since => b = b ,)hence x must = 1)
e.g. log10 10 = 1

(3) logb  
n 1
x = n logb x
 A Note of Caution:
• All logs must be to the same base in applying
the rules and solving for values
• The most common base for logarithms are logs
to the base 10, or logs to the base e (e =
2.718281…)
• Logs to the base e are called Natural Logarithms
• logex = ln x
• If y = exp(x) = ex
then loge y = x or ln y = x
 Features of y = e x

non-linear 8.00

always 7.00

positive 6.00

5.00

as  x get
x
y=e

4.00

 y and 3.00

 slope of 2.00

graph 1.00

(gets 0.00

steeper)
0 0.02 0.05 0.1 0.15 0.2 0.25 0.5 0.75 1 1.25 1.5 1.75 2

x
 Logs can be used to solve algebraic equations where
the unknown variable appears as a power
An Example : Find the value of x
(4)x = 64
1) rewrite equation so that it is no longer a power
• Take logs of both sides
log(4)x = log(64)
• rule 3 => x.log(4) = log(64)
2) Solve for x
• x = log(64)
log(4)
Does not matter what base we evaluate the logs, providing the same
base is applied both to the top and bottom of the equation
3) Find the value of x by evaluating logs using (for example) base 10
• x = 1.8062 ~= 3
0.6021
Check the solution
• (4)3 = 64
 Logs can be used to solve algebraic
equations where the unknown variable
appears as a power
An Example : Find the value of x
200(1.1)x = 20000
Simplify
• divide across by 200
(1.1)x = 100
to find x, rewrite equation so that it is no longer a power
• Take logs of both sides
log(1.1)x = log(100)
• rule 3 => x.log(1.1) = log(100)
Solve for x
• x = log(100)
log(1.1)
no matter what base we evaluate the logs, providing the same base is applied both to the top and
bottom of the equation
Find the value of x by evaluating logs using (for example) base 10
• 2
x= = 48.32
0.0414
Check the solution
• 200(1.1)x = 20000
• 200(1.1)48.32 = 20004
 Another Example:
Find the value of x
5x = 2(3)x
1. rewrite equation so x is not a power
• Take logs of both sides
log(5x) = log(23x)
• rule 1 => log 5x = log 2 + log 3x
• rule 3 => x.log 5 = log 2 + x.log 3

» Cont……..
2. Solve for x
x [log 5 – log 3] = log 2

x[log 
5 
rule 2 =>  ] = log 2
 3 

log( 2 )
x = log( 5 )
3

Find the value of x by evaluating logs

3. using (for example) base 10

log( 2 ) 0.30103
x = log( 5 ) = 0.2219 = 1.36
3

4. Check the solution

5x = 2(3)x  51.36 = 2(3)1.36  8.92
An Economics Example 1

Y= f(K, L) = A KL

Y*= f(K, L) = A (K)( L)

Y*= A KL   = Y+

+ = 1 Constant Returns to Scale

+ > 1 Increasing Returns to Scale
+ < 1 Decreasing Returns to Scale

Homogeneous of Degree r if:

f(X, Z ) = r f(X, Z) = r Y
Homogenous function if by scaling all
variables by , can write Y in terms of r
An Economics Example 2
Y = National Income = £30,000 mill in
1964. It grows at 4% p.a. In 1984, Y = ?

1964: Y=3
1965: Y = 3(1.04)
1966: Y = 3(1.04)2
1984: Y = 3(1.04)20
1984: logY = log{3(1.04)20}
logY = log3 + log{(1.04)20}
logY = log3 + 20.log(1.04)
Evaluate to the base 10
logY = 0.47712 + 20(0.01703)
logY = 0.817788
Find the anti-log of the solution:
Y = 6.5733

In 1984, Y = £65733 mill

 Good Learning Strategy!
• Up to students to revise and practice
the rules of indices and logs using
examples from textbooks.
• These rules are very important for
remaining topics in the course.