ECON 441: Introduction to Mathematical Economics
Lecture 8
\[y=f(x)=x^{2}+20\]
How much can your grade increase if you study for one additional hour per week?
Depends on how much you are studying right now!
Use \(\Delta\) to denote change: \[\Delta x=x_{1}-x_{0}\]
Change in \(y\) per unit change in \(x\): \[\frac{\Delta y}{\Delta x}=\frac{f\left(x_{0}+\Delta x\right)-f\left(x_{0}\right)}{\Delta x}\]
\[y=f(x)=x^{2}+20\]
What happens if you go from 6 to 8 hours of studying? \[x_0 = 6, \; x_1 = 8 \; \rightarrow \; \Delta x = x_{1}-x_{0}=2\]
Total change in grades: \[f(x_0+\Delta x) - f(x_0) = \hspace{4em}\]
Per hour change in grade: \[\frac{\Delta y}{\Delta x}=\frac{f\left(x_{0}+\Delta x\right)-f\left(x_{0}\right)}{\Delta x} = \hspace{4em}\]
Usually we are interested in minuscule changes from \(x_0\).
The derivative of a function is defined as: \[\frac{d y}{d x} = f'(x)= \lim_{\Delta x \rightarrow 0} \frac{\Delta y}{\Delta x}\]
Note that \[\frac{\Delta y}{\Delta x}=\frac{f\left(x_{0}+\Delta x\right)-f\left(x_{0}\right)}{\Delta x}\]
For the function \(y=f(x)=x^{2}+20\): \[\begin{aligned} \frac{\Delta y}{\Delta x}&=\frac{f\left(x_{0}+\Delta x\right)-f\left(x_{0}\right)}{\Delta x} \\ &= \frac{(x_0+\Delta x)^2+20-(x_0^2+20)}{\Delta x} \\ &= \frac{x_0^2+ (\Delta x)^2+2 x_0 \Delta x-x_0^2}{\Delta x} \\ &= 2 x_0 + \Delta x \end{aligned}\]
Then the derivative is \[\frac{d y}{d x} = f'(x_0)= \lim_{\Delta x \rightarrow 0} \, (2 x_0 + \Delta x) = 2 x_0\]
The derivative: \[\frac{d y}{d x} = f'(x_0)= \lim_{\Delta x \rightarrow 0} \frac{f\left(x_{0}+\Delta x\right)-f\left(x_{0}\right)}{\Delta x}\]
Alternatively, \[\frac{d y}{d x} = f'(x_0)= \lim_{x \rightarrow x_0} \frac{f(x)-f(x_{0})}{x-x_0}\]
For the function \(y=f(x)=x^{2}+20\): \[\begin{aligned} \frac{d y}{d x}&= \lim_{x \rightarrow x_0} \frac{f(x)-f(x_{0})}{x-x_0} \\ &= \lim_{x \rightarrow x_0} \frac{x^2+20-x_0^2-20}{x-x_0} \\ &= \lim_{x \rightarrow x_0} \frac{x^2-x_0^2}{x-x_0} \\ &= \lim_{x \rightarrow x_0} \, (x+x_0) = 2x_0 \end{aligned}\]
\[y=f(x)=x^{2}+20 \; \rightarrow \; f'(x) = 2x\]
We say that \(L\) is the limit of \(f(x)\) at \(a\), i.e. \[\lim_{x \rightarrow a} f(x) = L\] if \(f(x)\) approaches \(L\) as \(x\) approaches \(a\) from any direction.
Note that we don’t actually set \(x=a\).
Also, for the limit to exist at a point we need the function to approach the same value from both directions.
Left-side limit: if \(x\) approaches \(a\) from the left side \[\lim_{x \rightarrow a^-} f(x)\]
Right-side limit: if \(x\) approaches \(a\) from the right side \[\lim_{x \rightarrow a^+} f(x)\]
Only when both the left-side and right-side limits have a common finite value do we say that the limit exists.
\[f(x) = \frac{4x-4}{\left|x-1\right|}\]
\[\lim_{x \rightarrow 1^-} f(x) = \hspace{6em}\]
\[\lim_{x \rightarrow 1^+} f(x) = \hspace{6em}\]
Textbook reference: 6.2-6.4
ECON 441 · Introduction to Mathematical Economics