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
