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Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Multiple Variables Calculus Review


For Economics JonDuan@UVic.ca or jonduan.weebly.com
Department of Economics University of Victoria

ECON 203, B01 and B06, 2013

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Outline

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

F.O.C and S.O.C


Review the rules we studied last lab.

The rst derivative If


d 2y dx 2

dy dx

=0
d 2y dx 2

The second derivatives One example:

> 0 convex and minimum

< 0, then concave and maximum


3 2 3 x +1 y = 5 + 2x 2 3x

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Chain rule

F '(x) = f '(g(x))g'(x). Example : f (x) = (3x2 = 1)3 and f (x) = ln x2 F '(x) = f 'g (g(x), h(x))g'(x) + f 'h (g(x), h(x))h'(x), total derivative of F with respect to x. Here we need partial derivatives.

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Motivation: Why We Need to Know Multiple Variables Calculus.

Economic examples of multivariate functions:

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

What is the derivatives? Slope

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Indierence Curve

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Production Function

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Isoquant Curve

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Partial Derivatives

3 examples. Another way to look at production function: ln Y =ln A + lg K + ln L

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Exercise
bx = a , then x is the logarithm of a to base b : log b a = z .

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Two Utility Functions.

U = max (2x 1 , x2 ) U = min(2x 1 , x2 )

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Geometric Interpretation

Jon Duan

Calculus review for economics

Review Rules: Chain Rule Multiple Variables Calculus Prepare for Math Test Summary

Summary

Review rules. Partial derivatives Prepare for the Math Test. Outlook
Next week we will have a Math Test. Do more exercises.

Jon Duan

Calculus review for economics

Appendix

For Further Reading

For Further Reading I

Frank-Parker http://www.mcgrawhill.ca/college/olcsupport/frank4/math/ MIT Calculus online course. https://www.youtube.com/watch?v=jbIQW0gkgxo.

Math tutorial from UT http://www.economics.utoronto.ca/osborne/MathTutorial/CLCF.HTM

Jon Duan

Calculus review for economics