CALCULUS

Introduction to Limits
Section 10.1
c csun 2009
denition of the limit
limits from a graph
limits from an algebraic expression
indeterminate forms
1
Denition of the limit
Let f(x) be a function, and let c and L be real numbers.
lim
xc
f(x) = L,
means that the value of f(x) is close to the number L whenever
x is close to c.
Sometimes a limit does not exist. That is, there are functions
f and numbers c where f(x) doesnt get close to any number L
even through x is close to c.
2
Limits from a graph
6 5 4 3 2 1 1 2 3 4 5 6
6
5
4
3
2
1
1
2
3
4
5
6

lim
x0
f(x) =
lim
x1
f(x) =
lim
x3
f(x) =
lim
x4
f(x) =
3
Limits from a graph
6 5 4 3 2 1 1 2 3 4 5 6
6
5
4
3
2
1
1
2
3
4
5
6

lim
x0
f(x) =
lim
x1
f(x) =
lim
x2
f(x) =
lim
x4
f(x) =
4
One-sided limits
6 5 4 3 2 1 1 2 3 4 5 6
6
5
4
3
2
1
1
2
3
4
5
6

lim
x4
+
f(x) =
lim
x4
f(x) =
lim
x2
+
f(x) =
lim
x2
f(x) =
5
Limits that go to innity
Example: f(x) =
1
x
2
Here, lim
x0
f(x) = .
2 1 0 1 2
10
20
30
40
50
6
Limits from an algebraic expression
Often, you can evaluate the limit of a function by just evalu-
ating the function at the desired point.
Here are some examples:
lim
x0
2x +3 = 3
lim
x1
2x +3 = 5
lim
x5
x +3
2x 1
=
5 +3
2 5 1
=
8
9
lim
x1
_
2x +9 =

7
7
More dicult examples
Sometimes, you cannot simply evaluate the function to nd the
limit.
Here are some examples:
A. lim
x0
1
x
B. lim
x1
x
2
1
x 1
C. lim
x
1
2
1
2x 1

4x 2
x +1
D. lim
x4
_
x
2
16
x
3
64
In each case, a direct evaluation would require division by zero.
Still, some of these functions have a limit at the designated value
of x.
In all but one of these examples (which one? ? .), both the
numerator and the denominator have zero as their limit. In this
case, the limit problem is called a 0/0 indeterminate form.
8
Indeterminate forms
If lim
xc
f(x) = 0 and lim
xc
g(x) = 0, then lim
xc
f(x)
g(x)
is indeterminate.
The term indeterminate is used because the limit may or may
not exist. And if the limit exists it can be any number.
9
Example of a 0/0 indeterminate form:
lim
x1
x
2
1
x 1
x .9 .99 .999 1.1 1.01 1.001
x
2
1
x1
1.9 1.99 1.999 2.1 2.01 2.001
(.999)
2
1
.999 1
=
.001999
.001
= 1.999
Why does
x
2
1
x 1
get close to 2 as x gets close to 1?
Algebraic cancellation:
x
2
1
x 1
=
(x 1)(x +1)
x 1
= x +1
So lim
x1
x
2
1
x 1
= ? .
10
Example of a 0/0 indeterminate form:
lim
x2
x
2
4
x
2
x 2
x 2.1 2.01 2.001
x
2
4
x
2
x2
1.32258 1.33223 1.33322
(2.01)
2
4
2.01
2
(2.01) 2
=
0.0401
0.0301
= 1.33223
Why does
x
2
4
x
2
x 2
get close to
4
3
as x gets close to 2?
Algebraic cancellation:
x
2
4
x
2
x 2
= =
So
lim
x2
x
2
4
x
2
x 2
=
?
?
.
11
Practice with 0/0 indeterminate forms
lim
x3
x
2
9
x +3
lim
x3
x
2
9
x 3
lim
x5
x
2
+3x 10
x
2
+5x
12
Limits of rational functions at x
horizontal asymptotes
Example: f(x) =
1
x
.
lim
x
1
x
= 0 When x gets large (positively), 1/x gets close to 0.
lim
x
1
x
= 0 When x gets large (negatively), 1/x gets close to 0.
What about?
lim
x
2
x
lim
x
6
x
lim
x
5
x
lim
x
8
x
13
Limits of rational functions at x
Example: f(x) =
x 2
x +3
.
Evaluate lim
x
x 2
x +3
1412108642 2 4 6 8 101214
14
12
10
8
6
4
2
2
4
6
8
10
12
14
x 2
x +3
=
1 2/x
1 +3/x
14
More examples of horizontal asymptotes
Evaluate: Horizontal asymptotes
lim
x
2x 7
3x +1
lim
x
x +4
2x +3
lim
x
3x 10
2x +1
lim
x
x 1
5x +11
15
16
Continuity
Section 10.2
c csun 2009
denition
examples
17
Denition of continuity
Let f(x) be a function and c a number. The function f(x) is
continuous at the point x = c if
1. lim
xc
f(x) exists,
2. f(c) exists,
3. lim
xc
f(x) = f(c).
18
Example:
10 8 6 4 2 2 4 6 8 10
10
8
6
4
2
2
4
6
8
10
19
Example:
10 8 6 4 2 2 4 6 8 10
10
8
6
4
2
2
4
6
8
10
20
Example: Is the function f(x) =
x 2
x +3
continuous at
x = 0?
x = 3?
x = 6?
1412108642 2 4 6 8 101214
14
12
10
8
6
4
2
2
4
6
8
10
12
14
21
Example from business
A car rental agency charges $30 per day (or partial day) or $150
per week, whichever is least. The graph the cost function C(x)
is shown below. Discuss continuity.
1 2 3 4 5 6 7 8 9 10
Days
30
60
90
120
150
180
210
240
270
Cost

22
The graph of T(x):
100000 200000 300000 400000
Income
20000
40000
60000
80000
100000
120000
Tax
Is T(x) continuous?
Would it be good tax policy
to have an income tax func-
tion that is not continuous?
Between But Not Over Base Tax Rate Of the
Amount Over
$0 $7,550 0 10% $0.00
$7,550 $30,650 $755.00 15% $7,550
$30,650 $74,200 $4,220.00 25% $30,650
$74,200 $154,800 $15,107.50 28% $74,200
$154,800 $336,550 $37,675.50 33% $154,800
$336,550 $97,653.00 35% $336,550
23
A tax function that is not continuous:

0 100 200 300 400 500

Income 0
20
40
60
80
100
120
140
160
Tax
Near the end of the tax year, your income is exactly 300.
What is your tax?
What is your net (after-tax) income?
You have an opportunity to take a small job and earn an extra
10 before the year ends. Should you take it? Why?
24
The Derivative
Section 10.4
c csun 2009
Average rate of change = Slope of secant line
The derivative as instantaneous rate of change
Instantaneous rate of change = Slope of tangent line
Computing the derivative using the denition
(The four-step process)
25
Average rate of change: an example:
Revenue is given by R(x) = x(75 3x) for 0 x 20.
What is the change in revenue if sales change from 9 to 12?
What is the average rate of change in revenue if sales change
from 9 to 12?
26
Revenue is given by R(x) = x(75 3x) for 0 x 20.
What is the average change in revenue if sales change from 9 to
11?
What is the average change in revenue if sales change from 9 to
10?
What is the average change in revenue if sales change from 9 to
9.1?
27
Average rate of change is slope: rise over run
7 8 9 10 11 12 13
414
420
426
432
438
444
450
456
462
468
474
Graphically, we are nding
the slope of the secant line
between the points (9, 432)
and (9 +h, R(9 +h)) on the
graph of R(x) = x(75 3x).
The four values of h from
the previous slides are h =
3, 2, 1, 0.1.
R(9) = 432
R(9.1) = 434.07
R(10) = 450
R(11) = 462
R(12) = 468
slope =
rise
run
R(12)R(9)
129
=
36
3
= 12
R(11)R(9)
119
=
30
2
= 15
R(10)R(9)
109
=
18
1
= 18
R(9.1)R(9)
9.19
=
2.07
.1
= 20.7
28
Dierence quotient: The slope of the secant line equals
the dierence quotient:
Dierence quotient =
f(x +h) f(x)
h
.
x xh
fx
fxh
29
Instantaneous rate of change: The limit of the dif-
ference quotient gives the instantaneous rate of change of the
function f(x) passing through the point (x, f(x)).
instantaneous rate of change at x = lim
h0
f(x +h) f(x)
h
The instantaneous rate of change depends on the function f(x)
and on the value of x.
30
Instantaneous rate of change is the slope of the
tangent line:
The symbol for the instantaneous rate of change is f

(x).
f

(x) is called the derivative of the function at x.

x
fx
f

(x) equals:
the slope of tangent line
the limit of the dierence
quotient
the instantaneous rate of
change of the function at x.
31
How to compute a derivative
The four-step process:
Step 1. Compute f(x +h).
Step 2. Compute f(x +h) f(x).
Step 3. Compute and simplify
f(x +h) f(x)
h
.
Step 4. Use Step 3 to nd the limit as h approaches 0
f

(x) = lim
h0
f(x +h) f(x)
h
.
32
An example of the four-step process:
f(x) = x
2
3x, nd f

(x)
Step 1. Compute f(x +h)
Step 2. Compute f(x +h) f(x)
Step 3. Compute and simplify
f(x +h) f(x)
h
Step 4. Find the limit as h approaches 0
f

(x) = lim
h0
f(x +h) f(x)
h
.
33
An example of the four-step process:
R(x) = 60x .02x
2
Find R

(x)
Step 1. Compute R(x +h)
Step 2. Compute R(x +h) R(x)
Step 3. Compute and simplify
R(x +h) R(x)
h
Step 4. Find the limit as h approaches 0
R

(x) = lim
h0
R(x +h) R(x)
h
.
34
Application of the derivative:
The revenue in dollars from the sale of x car seats for infants is
R(x) = 60x .02x
2
.
Find the revenue and the instantaneous rate of change in rev-
enue at a sales level of 1000 car seats. Write a summary for the
instantaneous rate of change at x = 1000.
35
36
Derivatives of Constants,
Power Functions, and Sums
Section 10.5
c csun 2009
Notation for the derivative
Derivative of a constant function
Derivatives of powers (power rule)
Derivatives of sums and dierences
Marginal cost
Slope
37
Notation for the derivative
The derivative of a function f(x) may be represented by any of
the following:
f

(x), y

, or dy/dx.
38
The derivative of a constant function
Let f(x) = 5.
What is the slope at the point (2, 5)?
What is the slope at (3, 5)?
Does the slope depend on the particular value of x?
Theorem: If f(x) = c is a constant function, then f

(x) = 0.
39
Power rule
Use the four-step process to compute the derivative of the func-
tion f(x) = x
2
:
The same pattern holds for other powers of x:
f(x) = x
3
f(x) = x
4
f(x) = x
5
f

(x) = 3x
2
f(x) = 4x
3
f(x) = 5x
4
Theorem: If f(x) = x
n
, then f

(x) = nx
n1
.
This is true for any number n, not just integers.
40
Examples of the power rule
Find the derivatives of these functions:
f(x) = x
3
f(x) = x
10
f(x) = x
3.2
f(x) = x
2
f(x) = x
4
f(x) = x
1/2
41
Examples of the power rule (in disguise)
Find the derivatives of these functions:
f(x) =
1
x
2
f(x) =
1
x
10
f(x) =

x f(x) =
1

x
42
Multiplication by a constant
An example: f(x) = 5x
3
.
We know that the derivative of u(x) = x
3
is u

(x) = 3x
2
. The
derivative of 5u(x) = 5x
3
is 5u

(x) = 5(3x
2
) = 15x
2
.
Theorem: Let f(x) = k u(x) where k is a constant. Then
f

(x) = k u

(x).
The proof follows from the fact that the constant k factors out
of the dierence quotient:
f(x +h) f(x)
h
=
k u(x +h) k u(x)
h
= k
_
u(x +h) u(x)
h
_
.
43
Examples:
If f(x) = 10x
4
, then f

(x) = 40x
3
.
If f(x) = 7x
2
, then f

(x) = 14x.
If f(x) =
2
x
3
= 2x
3
, then f

(x) = 6x
4
=
6
x
4
.
If f(x) = 5

x = 5x
1/2
, then f

(x) =
5
2
x
1/2
.
If f(x) = 2x
7
, the f

(x) =
If f(x) =
4
x
5
, then f

(x) =
If f(x) = 30

x, then f

(x) =
44
Sum and Dierence Properties
Theorem: If f(x) = u(x) +v(x), then f

(x) = u

(x) +v

(x).
Examples
If f(x) = x
2
+x
3
, then f

(x) = 2x +3x
2
.
If f(x) = 5x
2
+x
3
, then f

(x) = 10x +3x

2
.
If f(x) = 3x +
1
x
, then f

(x) = 3
1
x
2
.
If f(x) = x
4
+3x
2
, then f

(x) =.
If f(x) = 2x +

x, then f

(x) =.
45
Use of the Derivative
For a particular value of x, the derivative f

(x) gives the

instantaneous rate of change
slope of the line tangent to the graph of f(x)
marginal cost
If C(x) is a cost function, then
C

(x) approximates the cost of producing on more item at a

production level of x items.
C

(x) is called the marginal cost.

46
Marginal Cost
The total cost (in dollars) of producing x portable radios per day
is
C(x) = 1000 +100x 0.5x
2
, for 0 x 100.
1. Find the marginal cost at a production level of x radios per
day.
2. Find the marginal cost at a production level of 80 radios.
47
Example continued
Cost function: C(x) = 1000 +100x 0.5x
2
3. Find the actual cost of producing the 81st radio and compare
this with the marginal cost in part 2.
4. Find the marginal cost at a production level of 20 radios and
compare this with the actual cost of producing the 21st radio.
48
Slope of a Tangent Line
The derivative of a function f(x) at a point a gives the slope of
the line tangent to the graph of f(x) at the point (a, f(a)).
Example: The graph of the function f(x) = x
3
3x
2
+ 2x + 1
and a tangent line are shown below.
0.5 0.5 1.0 1.5 2.0 2.5
1.0
0.5
0.5
1.0
1.5
2.0
What are the coordi-
nates of the point shown
on the graph?
What is the slope of the
tangent line?
49
50
51
52
Marginal Analysis in Business
and Economics
Section 10.7
c csun 2009
marginal cost, revenue, and prot functions
interpreting the derivative as marginal cost, revenue, and
prot
Marginal refers to an instantaneous rate of change, that is, a
derivative.
53
Example of marginal cost
The total cost of producing x electric guitars is
C(x) = 1, 000 +100x 0.25x
2
.
1. Find the exact cost of producing the 51st guitar.
2. Compute the derivative C

(x) and its value C

(50) at x = 50.
3. Compare C

(50) with the exact cost from part 1.

54
Marginal Cost
The marginal cost function is just the derivative of the cost func-
tion. In business, we use marginal cost C

(x) to approximate the

exact cost to produce the (x +1)st unit.
Why does the approximation work? Because
C

(a) = lim
h0
C(x +h) C(x)
h
and when h = 1, the dierence quotient equals
C(x +1) C(x),
which is the exact cost to produce the (x +1)st unit.
55
Graphical interpretation of exact cost and marginal
cost
The total cost to produce x items is C(x) and the total cost
to produce x +1 items is C(x +1). Therefore the exact cost to
produce the (x +1)st item is
C(x +1) C(x).
The marginal cost is an approximation of the exact cost:
C

(x)
.
= C(x +1) C(x).
x x1
Cx
Cx1
56
Example:
Let
C(x) = 10, 000 +90x .05x
2
be the total weekly cost (in dollars) of manufacturing x fuel tanks
for cars.
Compute the marginal cost function and use it to approximate
the exact cost to manufacture the 101st fuel tank.
Marginal cost function: C

(x) = 90 .10x
Marginal cost at x = 100: C

(100) = 90 .10(100) = 80
Summary: It costs approximately $80.00 to produce the 101st
fuel tank.
57
Example continued
The marginal cost function:
C

(x) = 90 .10x
Is the cost of a fuel tank increasing, decreasing or remaining the
same as x increases?
The marginal cost function C

(x) gives the (approximate) cost

to produce the (x + 1)st tank. So the rst tank costs about
C

(0) = 90 dollars. But the second tank cost about C

(1) =
89.90 dollars. Apparently the cost to produce the (x+1)st tank
is $.10 less than the cost to produce the xth tank.
Compute and interpret C

(200):
Compute and interpret C

(500):
58
Marginal Revenue & Prot
The technique of approximating the cost to produce a single
item by the marginal cost also applies to revenue and prot.
Revenue: If R(x) is the revenue from selling x units, then the
additional revenue earned by selling x + 1 units rather than x
units is
R(x+1)R(x). (additional revenue from selling (x+1)st unit)
The marginal revenue, R

(x) is approximately equal to the addi-

tional revenue:
R

(x)
.
= R(x +1) R(x).
Prot: The same thing holds for the prot function, P(x):
P

(x)
.
= P(x +1) P(x).
59
Application
The price-demand equation and the cost function for the pro-
duction and sales of television sets are
x = 6, 000 30p, C(x) = 150, 000 +3x.
where p is the price of a TV and x is the number produced and
sold. Prot and cost are in dollars.
a. Express the price p as a function of x:
b. Express revenue R(x) as a function of x:
c. Express prot P(x) as a function of x:
60
Application continued
d. Find the marginal cost, marginal revenue, and marginal prot
functions:
e. Find and interpret R

(3000):
f. Find and interpret P

(1500) and P(1500):

61
Application continued
The cost and revenue functions are graphed below.
1000 2000 3000 4000 5000 6000
x
50000
100000
150000
200000
250000
300000
dollars
Identify which curve goes with
which function
Shade the prot area
Mark the break even points
Mark the point where prot is
maximized
62
63
64
Derivatives of Products and
Quotients
Section 11.3
c csun 2009
Formulas for computing:
the derivative of a product of two functions, such as
S(t) = (9000t
2
+t)(t
2
+50)
the derivative of a quotient of two functions, such as
S(t) =
9000t
2
+t
t
2
+50
65
Derivative of a product: the product rule
If f(x) = F(x)S(x),
then f

(x) = F(x)S

(x) +S(x)F

(x).
Example:
f(x) = (5x
2
)(x
3
+2):
Identify F(x) and S(x) (the rst and second functions)
Find the derivatives F

(x), S

(x):
Find the derivative f

(x):
66
Practice problems
Find the derivatives of these functions:
1. f(x) = (5x
2
+x +1)(3x 2)
2. f(x) = (2x
1/2
+x +1)(3x 2)
3. f(x) = (x
2
+
1
x
+1)(x 7)
67
Answers to practice problems
1.
_
5x
2
+x +1
_
3 +(3x 2)(10x +1) = 45x
2
14x +1
2. (2x
1/2
+x +1)3 +(x
1/2
+1)(3x 2) = 6x +9

x +1
2

x
3. (x
2
+x
1
+1) +(x 7)(2x x
2
) = 3x
2
14x +1 +
7
x
2
Verify the algebraic simplications.
68
Derivative of a quotient: the quotient rule
If f(x) =
T(x)
B(x)
,
then f

(x) =
T

(x) B(x) T(x) B

(x)
[B(x)]
2
.
Example:
f(x) =
5x
2
x
3
+2
:
Identify T(x) and B(x) (the top and bottom functions)
Find the derivatives T

(x), B

(x):
Find the derivative f

(x):
69
Practice problems
Find the derivatives of these functions:
1. f(x) =
5x
2
+x +1
3x 2
2. f(x) =
2x
1/2
+x +1
3x 2
3. f(x) =
x
2
+
1
x
+1
x 7
70
Answers to practice problems
(10x +1)(3x 2) (5x
2
+x +1)3
(3x 2)
2
=
5
_
3x
2
4x 1
_
(3x 2)
2
(x
1/2
+1)(3x 2) (2x
1/2
+x +1)3
(3x 2)
2
=
3x 5

x 2
(3x 2)
2

x
(2x x
2
)(x 7) (x
2
+x
1
+1)
(x 7)
2
=
x
4
14x
3
x
2
2x +7
(x 7)
2
x
2
Verify the algebraic simplications.
71
Application: CD sales
The monthly sales of a new CD often increases and then levels
o. The graph below shows the monthly sales S(t) (in thou-
sands of CDs) as function of the number of months t since it
was released.
10 20 30 40
t months
20
40
60
80
sales in thousands
72
CD sales continued
The formula for the monthly sales is
S(x) =
90t
2
t
2
+50
.
Find the derivative S

(x).
Find and interpret S(10) and S

(10).
73
74
75
76
The Power Rule
Section 11.4
c csun 2009
the derivative of a function raised to a power,
such as f(x) = (x
3
+2)
5
combining dierent rules to get the derivative of more com-
pliated functions, such as f(x) = (x
3
+2)
5
(x 1)
77
Dierent methods for computing the derivative
of a simple power function
f(x) = (3x +1)
2
Multiply out
f(x) = 9x
2
+6x +1 f

(x) = 18x +6
Product Rule
f(x) = (3x +1)(3x +1) f

(x) = 3(3x +1) +(3x +1)3

= 18x +6
Power Rule
f(x) = (3x +1)
2
f

(x) = 2(3x +1)

1
(3)
= 18x +6
78
The Power Rule
If f(x) = [u(x)]
n
, where u(x) is a dierentiable function and
n is any real number, then
f(x) = n[u(x)]
n1
u

(x).
Example: Find the derivative of f(x) = (x
3
+2)
5
.
f(x) = [u(x)]
n
, where u(x) = x
3
+2 and n = 5.
The Power Rule calls for u

(x). But we know that:

u

(x) = 3x
2
.
Apply the Power Rule:
f

(x) = n[u(x)]
n1
u

(x) = 5(x
3
+2)
4
(3x
2
) = 15x
2
(x
3
+2)
4
.
79
Work out the derivatives of these functions:
f(x) = (x
3
2x +1)
3
f(x) = (5x
2
x)
4
f(x) = (x
1
2x +1)
3
80
Work out the derivatives of these functions:
f(x) = (x
3
2x +1)
1/2
f(x) =
_
x
3
2x +1
f(x) = (x
3
2x +1)
3
81
Combining rules of dierentiation
Some functions require more than one rule to nd their deriva-
tive. For example:
f(x) = (3x 2)
4
(2x +1).
The function f(x) is the product of two other functions, F(x) =
(3x 2)
4
and S(x) = 2x +1. So we will need the product rule.
But to dierentiate the rst function F(x), we also need the
power rule.
First apply the product rule:
f

(x) = F(x) S

(x) +S(x) F

(x) = (3x 2)
4
2 +(2x +1)F

(x).
At this point, we still need to dierentiate F(x) using the power
rule:
F

(x) = 4(3x 2)
3
3.
Combining the results we get
f

(x) = 2(3x 2)
4
+12(2x +1)(3x 2)
3
.
82
Derivatives that require two rules:
practice problems
Dierentiate these functions:
f(x) = (x
2
+1)
5
(5x 7)
g(x) = (6x 11)

2x +3
83
84
Relative Rate of Change,
Elasticity of Demand Part 1
Section 11.7
c csun 2009
Relative rate of change (percentage increase or decrease)
Elasticity of demand at a certain price
Elasticity: inelastic, unitary, or elastic
Estimate the percentage decrease in demand if price in-
creases
85
Example: Relative rate of change
You intend to invest $1000 in one of two stocks, Biotech or
Comstat. Your broker estimates that Biotechs market value will
increase by $2 per share over the next year, while Comstats will
increase by only $1 per share.
Is this sucient information for you to choose betwenn these
two stocks? What other information might you request from
the broker to help you decide?
86
Example: Relative rate of change (continued)
You need to know the price of each stock.
Suppose Biotech is selling for $100 per share and Comstat is
selling of $25 per share. Find the percentage increase in the
market value of these two stocks.
Biotech increases $2 per share.
Comstat increases $1 per share.
87
Relative rate of change
The relative rate of change of a function f(x) is
f

(x)
f(x)
.
The relative rate of change compares the amount of the change,
f

(x) to the value of f(x).

88
Relative rate of change in the GDP
A model for the GDP (Gross domestic product) is f(t) = 300t +
6000 where t is the number of years since 1990 and GDP is in
billions of dollars.
1 2 3 4 5 6 7 8 9 10 11 12
Years since 1990
6600
7200
7800
8400
9000
9600
GDP in $billion
Is GDP increasing or decreasing each year? At what rate?
89
GDP continued
A model for the GDP (Gross domestic product) is f(t) = 300t +
6000 where t is the number of years since 1990 and GDP is in
billions of dollars.
What is the relative rate of change in the GDP for 1995?
What is the relative rate of change in the GDP for 2005? Why
is it dierent from that in 1995?
90
Relative rate of change of demand
The most important example of the relative rate of change is
how demand changes as a function of price.
Example: A price-demand equation is x = f(p) = 5002p, where
f(p) is the demand for an product if the price of p.
What is the relative rate of change in demand f(p) as a function
of price p?
What is the relative rate of change in demand at a price of $50?
91
Elasticity of demand
We know the demand for a product decreases when the price
of the price increases. Elasticity of demand is the ratio of the
relative decrease in demand and the relative increase in price.
E(p) =
percent change in demand
percent change in price
.
So if the elasticity of demand E(p) for a product is 1.5 and the
price of that product increases by 1%. then the demand will
decrease by 1.5%.
If price p and demand x are related by x = f(p), then the formula
for the elasticity of demand, E(p) at a price of p is
E(p) =
pf

(p)
f(p)
.
Note that the price-demand equation must be in the form x =
f(p). That is, demand must be expressed as a function of price.
92
Example: sunglasses
A sunglass retailer currently sells one type of sunglasses for $10
per pair. The price-demand function is x = f(p) = 7000 500p.
1. Find the elasticity of demand function, E(p).
93
Example: sunglasses (continued)
E(p) =
2. Find the elasticity of demand at a price of $10.
3. If the price is increased by 5%, what is the change in demand?
94
Demand is: inelastic, unit, elastic
Elasticity Demand Interpretation
0 < E(p) < 1 Inelastic
Percentage increase in price results
in smaller percentage decrease in
demand.
E(p) = 1 Unitary
Percentage change in price results in
same percentage change in demand.
E(p) > 1 Elastic
Percentage increase in price results
in larger percentage decrease in de-
mand.
95
Elasticity of demand, complete example
Begin with a price-demand equation: 2p +0.01x = 50.
1. Express the demand x as a function of the price p.
2. Find the elasticity of demand function E(p).
96
Elasticity of demand, complete example (contin-
ued)
E(p) =
3. Find the elasticity of demand at a price of $15. Is demand
inelastic, unitary, or elastic at that price?
4. If the price of $15 is increased 20%, what is the percentage
change in demand?
97
98
99
100
Elasticity of Demand Part 2
Section 11.7
c csun 2009
An example from the book: Problem 17
Another complete example
101
Elasticity of Demand: Sec 11.7, Problem 17
E(p) =
pf

(p)
f(p)
.
Begin with the price-demand equation:
p +0.005x = 30.
(A) Express the demand x as a function of the price p.
(B) Find the elasticity of demand E(p).
(C) What is the elasticity of demand when p = $10?
If this price is increased by 10%, what is the approximate change
in demand?
(D) What is the elasticity of demand when p = $25?
If this price is increased by 10%, what is the approximate change
in demand?
(E) What is the elasticity of demand when p = $15?
If this price is increased by 10%, what is the approximate change
in demand?
102
Elasticity of Demand: Sec 11.7, Problem 17
E(p) =
pf

(p)
f(p)
.
Begin with the price-demand equation:
p +0.005x = 30.
(A) Express the demand x as a function of the price p.
(B) Find the elasticity of demand E(p).
103
Elasticity of Demand: Sec 11.7, Problem 17
E(p) =
(C) What is the elasticity of demand when p = $10?
If this price is increased by 10%, what is the approximate change
in demand?
104
Elasticity of Demand: Sec 11.7, Problem 17
E(p) =
(D) What is the elasticity of demand when p = $25?
If this price is increased by 10%, what is the approximate change
in demand?
105
Elasticity of Demand: Sec 11.7, Problem 17
E(p) =
(E) What is the elasticity of demand when p = $15?
If this price is increased by 10%, what is the approximate change
in demand?
106
Elasticity of Demand and Revenue,
Sec 11.7, Problem 17
5 10 15 20 25 30
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Revenue as a function of price. R(p) = xp = 200(30 p)p.
Which price maximizes revenue?
How does this relate to elasticity?
107
Elasticity of Demand and Revenue,
Sec 11.7, Problem 17
Elasticity of demand is 1 at the price where marginal revenue is
zero:
E(p) = 1:
R

(p) = 0:
108
109
Elasticity of Demand: New Example
E(p) =
pf

(p)
f(p)
.
Begin with the price-demand equation:
2p +0.10x = 50.
(A) Express the demand x as a function of the price p.
(B) Find the elasticity of demand E(p).
(C) What is the elasticity of demand when p = $15?
If this price is increased by 20%, what is the approximate change
in demand?
(D) What is the elasticity of demand when p = $20?
If this price is increased by 5%, what is the approximate change
in demand?
110
Elasticity of Demand: New Example continued
E(p) =
pf

(p)
f(p)
.
Begin with the price-demand equation:
2p +0.10x = 50.
(A) Express the demand x as a function of the price p.
(B) Find the elasticity of demand E(p).
111
Elasticity of Demand: New Example continued
E(p) =
pf

(p)
f(p)
= .
(C) What is the elasticity of demand when p = $15?
If this price is increased by 20%, what is the approximate change
in demand?
112
Elasticity of Demand: New Example continued
E(p) =
pf

(p)
f(p)
= .
(D) What is the elasticity of demand when p = $20?
If this price is increased by 5%, what is the approximate change
in demand?
113
114
115
116
Maxima and Minima
Section 12.5
c csun 2009
What is an absolute maximum (or minimum)?
Where do they occur?
117
A graphical example
The graph of a function f(x) is shown below.
2, 4
1, 7
2, 20
4, 32
2 1 1 2 3 4
20
10
10
20
30
The highest point on the graph is (4, 32). So the absolute max-
imum of f(x) is 32 and it occurs where x = 4.
The lowest point on the graph is (2, 20). So the absolute min-
imum of f(x) is 20 and it occurs where x = 2.
The points (2, 4) and (4, 32) are called the end points of the
graph. x = 2, 4 are the end points of the domain of f.
The points (1, 7) and (2, 20) are the critical points of the
graph. x = 1, 2 are the critical values of x.
118
Denition of absolute maximum/minimum
Let f(x) be a function.
f(c) is an absolute maximum of the function f if f(c) f(x) for
all x in the domain of f. In other words, the value of f at c is
greater than or equal to the values of f for every other x in the
domain
f(c) is an absolute minimum of the function f if f(c) f(x) for
all x in the domain of f.
The example above suggests that the absolute maximum and
the absolute minimum must occur at an end point of the graph
or at a point where the slope of the tangent line is zero, that is
f

(x) = 0; these are critical points on the graph.

119
Identifying types of points on a graph
Identify the end points, points where the tangent is horizontal,
absolute maximums, and absolute minimums for the function
f(x) with the following graph:
0, 0
1, 467
3, 1971
4, 1792
5, 3275
1 1 2 3 4 5
1000
2000
3000
4000
What are the end points?
What are the points where the slope of the tangent line is zero?
What is the absolute maximum(s)?
What is the absolute minimum(s)?
120
Extreme value theorem
A function f that is continuous on a closed interval [a, b] has both
an absolute maximum value and an absolute minimum value on
that interval.
If the function has a derivative for every point in the interval [a, b],
then the absolute maximum and the absolute minimum must
occur either at an end point of the interval or at a point where
the slope of the tangent line is zero, that is where f

(x) = 0.
121
Steps in nding absolute maximums and mini-
mums
The values of x in the domain of f where f

(x) = 0 or where
f

(x) does not exist are called the critical values.

The absolute maximum and minimum of f(x) on [a, b] always
must occur at critical values or at the end points of the interval.
1. Check to make sure f is continuous on the interval [a, b].
2. Find the critical values of x in the interval [a, b].
3. Evaluate f(x) at the end points a and b and at the critical
values of x.
4. The absolute maximum and minimum of f(x) on [a, b] are
the largest and smallest of the values found in step 3
122
Finding the absolute maximum and minimum:
a simple example
Find the absolute maximum and absolute minimum of the func-
tion
f(x) = x
2
2x,
on the interval [1, 3].
1. The function is continuous on the entire interval.
2. Since f has a derivative for every x in the interval, the critical
values are those x for which f

(x) = 2x2 = 0. Solving 2x2 = 0

for x, we get only one critical value of x. The critical value is
x = 1.
3. Evaluate f at the end points and the critical value of x:
f(1) = 3, f(1) = 1, f(3) = 3.
4. The absolute maximum of f(x) is 3 and it occurs twice, once
at x = 1 and once at x = 3. The absolute minimum of f(x) is
-1 and it occurs only at x = 1.
123
Finding the absolute maximum and minimum:
a problem
Find the absolute maximum and absolute minimum of the func-
tion
f(x) = 2x
2
8x +9,
on the interval [1, 4]
124
Finding the absolute maximum and minimum:
a harder problem
Find the absolute maximum and absolute minimum of the func-
tion
f(x) = 3x
4
4x
3
12x
2
,
on the interval [2, 3].
2 1 1 2 3 4 5
30
20
10
10
20
30
125
126
127
128
Maximizing Prot, Part 1
Section 12.6
c csun 2009
Find the maximum prot from a graph
Prot is maximized when marginal revenue equals marginal
cost: R

(x) = C

(x).
129
Maximizing revenue: an example
A company can sell x fake tattoos per year at p dollars per
tattoo. The price-demand equation for the tattoos is
p = 10 .001x.
To maximize its revenue, what price should the company charge
for each tattoo?
Summary:
What is the maximum revenue?
Summary:
130
Maximizing prot: tattoo example continued
The total annual cost of producing x tattoos is
C(x) = 5000 +2x.
To maximize prot, how many tattoos should the company pro-
duce and sell?
Set marginal cost equal to marginal revenue and solve for x.
Summary:
131
Tattoo example continued
What is the maximum prot?
Summary:
What should the company charge per tattoo?
Summary:
132
The graph of revenue and cost: tattoos contin-
ued
2000 4000 6000 8000 10 000
Number of tattoos
4000
8000
12 000
16 000
20 000
24 000
28 000
Revenue and Cost in Dollars
Locate the point on the graph where prot is maximized.
Locate the point on the graph where revenue is maximized.
133
Prot on the graph
Where does the prot appear on the graph?
Since prot is the dierence between cost and revenue, the prot
for a particular value of x is represented by the length of the ver-
tical line between the cost and revenue functions. These vertical
lines have been added to the graph. For example, if the produc-
tion/sales level is x = 6000 tattoos, the prot is represented by
the thick line on the graph.
Which of the vertical lines is the longest?
What does this mean in terms of prot?
2000 4000 6000 8000 10 000
Number of tattoos
4000
8000
12 000
16 000
20 000
24 000
28 000
Revenue and Cost in Dollars
134
Summary
To nd the maximum prot over an interval [a, b]:
1. Find the critical values in the interval by solving R

(x) =
C

(x).
2. Evaluate the prot function P(x) at the end points a and b
and at the critical values found in step 1.
3. The maximum prot on [a, b] is the largest of the values
found in step 2.
Most often, the interval is [0, ) and because of the xed cost,
the prot is negative at x = 0. In these cases, the maximum
prot does not occur at an end point. It will occur at a point
where marginal cost equals marginal revenue.
135
136
Maximizing Prot, Part 2
Section 12.6
c csun 2009
A complete example
Changes in the cost function
137
A complete example:
ArtCo produces and sells special drawing kits. The cost and
price-demand information is given below:
Fixed costs $4105
Per item cost $30
Price-demand equation p = 440 5x
(A) Find the production/sales level that maximizes prot.
(B) Find the price that maximizes prot.
(C) Find the production costs at the production level
that maximizes prot.
(D) Find the revenue at the sales level that maximizes prot.
(E) Find the maximum prot.
138
C(x) =
C

(x) =
R(x) =
R

(x) =
P(x) =
Solve C

(x) = R

(x) for x:
(A) Find the production/sales level that maximizes prot.
Summary:
139
(B) Find the price that maximizes prot.
Price-demand equation: p = 440 5x
Summary:
(C) Find the production costs at the production level
that maximizes prot.
Summary:
140
(D) Find the revenue at the sales level that maximizes prot.
Summary:
(E) Find the maximum prot.
Summary:
141
The revenue and cost functions are shown on the graph below
along with the line tangent to the revenue curve at the point
where prot is maximum.
The maximum prot occurs when the production/sales level is
x = 41 kits.
20 40 60 80
Kits
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
142
What happens if the xed costs increase from $4105 to $5000?
Compare the two graphs:
20 40 60 80
Kits
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
20 40 60 80
Kits
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
Fixed costs are $4105 Fixed costs are $5000
It is clear from the graph that the production/sales level that
maximizes prot stays at x = 41. That is, the derivative of the
cost function, C

(x) = 30, does not depend on the xed costs,

only the per-item cost.
The prot at that level decreases by the increase in the xed
costs of $895. The break-even points are closer together when
the xed costs are higher.
143
What happens if the per-item cost increases from $30 to $50?
Again we compare the two graphs:
20 40 60 80
Kits
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
20 40 60 80
Kits
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
Per-item cost is $30 Per-item cost is $50
This time the production/sales level that maximizes prot is
x = 39. The derivative of the cost function is now 50 instead of
30. So the point on the revenue curve where the slope is steeper
(50 instead of 30) is to the left of the point where x = 41. That
is, the solution to the equation R

(x) = 50 (x = 39) is less than

the solution to R

(x) = 30 (x = 41).
144
Another example:
PatTech produces and sells patio furniture. The cost and price-
demand information for their outdoor lava lamp is given below:
Fixed costs $6156
Per item cost $20
Price-demand equation p = 420 4x
(A) Find the production/sales level that maximizes prot.
(B) Find the price that maximizes prot.
(C) Find the production costs at the production level
that maximizes prot.
(D) Find the revenue at the sales level that maximizes prot.
(E) Find the maximum prot.
(F) If xed costs decrease by $400, does the production/sales
level that maximizes prot decrease, increase, or stay the same?
(G) If the per-item cost decreases, does the production/sales
level that maximizes prot decrease, increase, or stay the same?
145
146
Answers:
(A) x = 50
(B) p = 220
(C) C(50) = 7156
(D) R(50) = 11, 000
(E) P(50) = 3844
(F) stays the same
(G) increases
20 40 60 80 100
Lamps
2000
4000
6000
8000
10 000
12 000
Cost, Revenue in dollars
147
148
Systems of Linear Equations
in Two Unknowns
Section 4.1
c csun 2009
Solve by graphing
Sole using substitution
Solve by elimination (addition method)
149
Warm-up problem
A restaurant serves two types of sh dinnerssmall for $5.99
and large of $8.99.
Yesterday, there were 134 total orders of sh with total receipts
of $1024.66. How many small and how many large sh dinners
were ordered?
Set up the two equations in two unknowns, where s is the num-
ber of small dinners ordered and l is the number of large dinners.
We will solve it later.
150
Systems of two equations in two unknowns
This is an example of a system of two linear equations in two
unknowns:
3x +5y = 9
x +4y = 10.
A solution is an ordered pari (x
0
, y
0
) that satises each equation.
The solution set is the set of all solutions.
Is (3, 0) a solution?
Is (2, 3) a solution?
151
Solve the system by graphing
3x +5y = 9
x +4y = 10.
5 4 3 2 1 1 2 3 4 5
5
4
3
2
1
1
2
3
4
5
Three points are shown on
the graph.
Write the coordinates of
each point.
Which of the points is a
solution to the system of
equations?
152
Solve this system by graphing
2x +3 = y
x +2y = 4.
5 4 3 2 1 1 2 3 4 5
5
4
3
2
1
1
2
3
4
5
153
Method of substitution
1. Solve one of the equations for
either x or y.
2. Substitute that result into the other
equation to obtain an equation in a
single variable (either x or y).
3. Solve the equation for that variable.
4. Substitute this value into either of
the original equations to obtain the
value of the remaining unknown.
154
Solve this system using substitution
3x 2y = 7
y = 2x 3
155
Independent consistent systems
A system of linear equations is consistent if it has one or
more solutions.
If a consistent system has exactly one solution then the sys-
tem is independent.
This system of equations has only one solution, (x, y) = (2, 5):
x +2y = 12
x 3y = 13
Is the system consistent?
Is the system independent?
What can you say about the graphs of the equations?
156
Dependent consistent systems
If a consistent system has more than one solution, then the
system is dependent.
The system
p = 0.1x +3
2p = 0.2x +6
has innitely many solutions: (x, p) = (0, 3), (10, 2), (20, 1), . . ..
So this system is dependent consistent.
What can you say about the graphs of these dependent equa-
tions?
157
Inconsistent systems
An inconsistent linear system is one that has no solutions. For
example, this system has no solutions:
p = 0.1x +3
p = 0.1x +6
What can you say about the graphs of these inconsistent equa-
tions?
158
Test your understanding
For each of the system below, state whether it is consistent
or inconsistent. If the system is consistent, is it dependent or
independent?
x +y = 4
2x y = 2
6x 3y = 9
2x y = 3
2x y = 4
6x 3y = 18
159
Solution by elimination (addition)
2x 7y = 3 (1)
5x +3y = 7 (2)
You may do any of the following and the solutions will not
change:
1. Write the equations in any order.
2. Multiply any equation by a nonzero constant.
3. Multiply any equation by a nonzero constant and add it to
another equation.
Follow these steps to solve the system above:
1. Multiply Equation (1) by 5 and Equa-
tion (2) by 2.
2. Add the two equations and replace
Equation (2) with the sum.
3. Use the second equation to solve for y.
160
Solve using elimination
2x 7y = 3
5x +3y = 7
161
Solve using any method
The US Postal Service charges a base price for overnight de-
livery of packages that weigh one ounce or less and a surcharge
for each additional ounce or partial ounce. The cost of mailing
a 6 ounce package is $1.68 and the cost of mailing a 13 ounce
package is $2.87. Find the base price and the surcharge. (Use b
for the base price and s for the surcharge.)
162
Solve the warmup (sh) problem
A restaurant serves two types of sh dinnerssmall for $5.99
and large of $8.99. Yesterday, there were 134 total orders of sh
with total receipts of $1024.66. How many small and how many
large sh dinners were ordered?
163
164
Systems of Linear Equations
and the Augmented Matrix
Section 4.2
c csun 2009
In this section, we develop a matrix method for solving systems
of two linear equations in two unknowns. This method is a
generalization of the elimination method from Section 4.1 and
can be used by computers and calculators to solve systems of
equations with many equations and many unknowns.
165
Matrices
A matrix is a rectangular array of numbers written within brack-
ets.
Example with three rows and three columns:
_

_
1 6 8
2 4 1
7 3 5
_

_
Example with three rows and two columns:
_

_
1 3
4 3
1 9
_

_
How many rows (columns) does the matrix A have?
A =
_

_
1 3 0 0
1 3 4 3
1 0 7 9
_

_
166
Entries of a matrix
The subscripts give the address
of each entry of the matrix. For
example the entry a
23
is found in
row 2 and column 3.
_

_
a
11
a
12
a
13
a
14
a
21
a
22
a
23
a
24
a
31
a
32
a
33
a
34
_

_
Circle a
21
in each matrix, if it exists.
_
1 3
5 0
_
_

_
3
0
9
_

_
_
2 5 8 1
_
_

_
4 5
7 3
10 4
8 8
11 6
_

_
167
Size of a matrix
When a matrix has m rows and n columns, its size is written
mn, as in A is an m-by-n matrix.
So
_
1 3 6
5 7 0
_
is a 2 3 matrix.
What is the size of each matrix?
_
1 3
5 0
_
_

_
3
0
9
_

_
_
2 5 8 1
_
_

_
4 5
7 3
10 4
8 8
11 6
_

_
168
Matrix method for solving a linear system
First, represent the linear system of equations as an augmented
matrix.
Linear system Augmented matrix
x +3y = 5
2x y = 3
_
1 3 5
2 1 3
_
4x y = 6
x y = 0
_
4 1 6
1 1 0
_
a
11
x
1
+a
12
x
2
= k
1
a
21
x
1
+a
22
x
2
= k
2
_
a
11
a
12
k
1
a
21
a
22
k
2
_
Write the augmented matrix for this system:
4x y = 6
x y = 0
169
Matrix method continued
Then, manipulate the augmented matrix (with row operations
coming in the next slide) to obtain one of the following forms.
Now you can just read o the solution. What is the solution to
each system?
_
1 0 5
0 1 3
_
_
1 2 5
0 0 0
_
_
1 2 5
0 0 3
_
170
Row operations, which do not change the solu-
tions to the system
Augmented matrix Symbol System of equations
Interchange rows i and j R
i
R
j
Change order of equa-
tions i and j
Multiply row i by a nonzero
constant k
kR
i
R
i
Multiply both sides of
equation i by a nonzero
constant k
Add k times row i to row j
kR
i
+R
j
R
j
Replace equation i by the
sum of equation i and k
times equation j
171
An example
Solve
x +3y = 5
2x y = 3
_
1 3 5
2 1 3
_
Augmented matrix
2R
1
+R
2
R
2
_
1 3 5
0 7 7
_
This makes a
12
= 0

1
7
R
2
R
2
_
1 3 5
0 1 1
_
This makes a
22
= 1
3R
2
+R
1
R
1
_
1 0 2
0 1 1
_
The matrix is in
reduced form
Solution: x = 2, y = 1 or (x, y) = (2, 1)
172
New problem
Solve:
2x +6y = 6
5x +7y = 1
Write the symbols for the row operations. Start with the row
operation
1
2
R
1
R
1
. Read as replaces.
173
Intersecting lines
Use matrix methods to nd the coordinates (x, y) of the point
of intersection for the lines with these equations:
x +2.0y = 4.0
x +0.5y = 2.5
174
Another problem
Solve this system using matrix methods. Write the symbols for
the row operations.
10x
1
2x
2
= 6
5x
1
+ x
2
= 3
175
Equilibrium points
Find the equilibrium point for these price/demand and price/supply
equations.
price/supply: 2p = x 66
price/demand: 5p = 0.5x +105
176
Summary
There are three possible reduced forms for the augmented matrix
of a system of two equations in two unknowns:
Form 1: Unique soluion: x = m, y = n (consistent
and independent)
_
1 0 m
0 1 n
_
Form 2: Innitely many solutions: y can be any
real number and x = m ry (consistent and de-
pendent)
_
1 r m
0 0 0
_
Form 3: n = 0 No solution: (inconsistent)
_
1 r m
0 0 n
_
177
178
179
180
Gauss-Jordan Elimination
Section 4.3
c csun 2009
A linear system must have exactly one solution, no solution, or an
innite number of solutions. Just as in the case of two equations
in two unknowns:
the term consistent and independent is use to describe a
system with only one solution.
consistent and dependent is used for a system with an innite
number of solutions.
inconsistent is used to describe a system with no solution.
181
An illustrative example
To solve this system using Gauss-Jordan elimination, start with
the augmented matrix.
x +y z=2
2x y +z= 5
x +2y +2z= 1
_

_
1 1 1 2
2 1 1 5
1 2 2 1
_

_
182
Matrix representations of independent, inconsis-
tent, and dependent systems
The following matrices represent systems of three linear equa-
tions in three unknowns. Write the solution for each.
consistent and independent
_

_
1 0 0 3
0 1 0 4
0 0 1 5
_

_
inconsistent
_

_
1 2 3 4
0 0 0 6
0 0 0 0
_

_
consistent and dependent
_

_
1 2 3 4
0 0 0 0
0 0 0 0
_

_
_

_
1 0 3 4
0 1 9 4
0 0 0 0
_

_
183
Reduced row echelon form
A matrix is in reduced row echelon form or more simply, in re-
duced form, if:
1. The rows consisting entirely of zeros are below the other
rows.
2. The leftmost nonzero entry in each row is 1.
3. All other entires in the column containing the leftmost 1 of
the row are zeros.
4. The leftmost 1 in any row is to the right of the leftmost 1
in the row above it.
All but one of these matrices are in reduced form. Which one is
not and which of the four conditions is not satised?
_

_
1 0 0 4
0 1 0 2
0 0 1 6
_

_
_

_
1 2 0 3
0 5 1 2
0 0 0 0
_

_
_

_
1 2 3 4
0 1 0 8
0 0 0 0
_

_
_

_
1 0 0 7
0 1 0 7
0 0 0 9
_

_
184
More on reduced form
Which matrices are in reduced form? If a matrix is not in reduced
form, use a row operation to get it into reduced form.
_

_
2 0 4 4
0 1 0 7
0 0 1 5
_

_
_

_
1 0 3 4
0 1 2 9
0 0 0 0
_

_
_

_
1 2 0 4
0 1 0 5
0 0 1 8
_

_
185
186
187
188
Matrices: Basic Operations
Section 4.4
c csun 2009
Add and subtract two matrices
Multiply a number and a matrix
Multiply two matrices
Matrix models
189
Addition and subtraction of Matrices
To add or subtract two matrices, they must be the same size.
To add (or subtract) matrices of the same size, add (or subtract)
their corresponding entries.
For example, if
A =
_
1 2
5 2
_
, and B =
_
4 5
9 1
_
,
then
A+B =
_ _
, and AB =
_ _
.
190
More examples:
_
4 3 1
0 1 5
_
+
_
2 1 0
4 2 1
_
=
_

_
6 1 1
4 1 5
2 1 1
_

_
_

_
2 1 0
4 2 1
3 2 7
_

_ =
_
3 1
1 5
_
+
_
2 1 0
4 2 1
_
=
_

_
2 1
10 4
1 0
_

_ +
_

_
1 0
2 1
0 0
_

_ =
_

_
1
4
1
0
_

_
+
_

_
1
2
3
1
_

_
=
191
Scalar Multiiplication
To nd the scalar product of a number k and a matrix A,
multiply each entry in A by the number k. The number k is
called a scalar.
For example, if k = 2 and
A =
_

_
6 1 1
4 1 5
2 1 1
_

_ , then 2A =
_

_
_

_ .
192
Combining operations
2
_
4 3 1
1 5 1
_

_
2 1 0
4 2 1
_
=
_ _
2
_

_
3 1 0
2 1 5
0 0 2
_

_ +3
_

_
2 1 0
4 2 1
5 2 1
_

_ =
_

_
_

_
193
Multiplying a Row Matrix and a Column Matrix
Observe how a 1 4 row matrix is multiplied by a 4 1 column
matrix:
_
1 2 3 4
_
_

_
5
6
7
8
_

_
= 1 5 +2 6 +3 7 +4 8 = 70
Now try this example:
_
1 0 5 2
_
_

_
7
4
1
3
_

_
=
194
Application: A Car Dealers Revenue
A car dealer sells four models: A, B, C, and D. On a given week,
this dealer sold 10 cars of model A, 5 of B, 8 of C, and 3 of D.
The selling prices of each model are:
Model Selling price
A $12,500
B $11,800
C $15,900
D $25,300
Represent the sales and price amounts using matrices and use
matrix multiplication to nd the total revenue.
195
A Car Dealers Revenue: Solution
Represent the number of each model sold with a 1 4 sales
matrix S:
S =
_
10 5 8 3
_
.
Represent the price of each model with a 4 1 price matrix P:
P =
_

_
12, 500
11, 800
15, 900
25, 300
_

_
.
The product SP gives the total revenue:
SP =
_
10 5 8 3
_
_

_
12, 500
11, 800
15, 900
25, 300
_

_
= 10(12, 500) +5(11, 800) +8(15, 900) +3(25, 300) = 387, 100.
Summary: The weekly revenue is $387,100.
196
Product of Two Matrices
If A is an m p matrix and B is a p n matrix, the matrix
product of A and B, denoted by AB, is an mn matrix whose
element in the ith row and jth column is the number obtained
from the product of the ith row of A and the jth column of B.
For the product to be AB to be dened, the number of columns
of A must be equal to the number of rows of B.
_
1 2 3 4
5 6 7 8
_
_

_
1 2 3
4 5 6
7 8 9
10 11 12
_

_
=
_
70 80 90
158 184 210
_
5(1) +6(4) +7(7) +8(10) = 158
197
Example
_
3 1 1
2 0 3
_
_

_
1 6 0 4
3 5 1 1
2 4 0 2
_

_ =
_ _
2 3 3
. .
must match
4
. .
size of product
2 4
198
Revenue of a Clothing Store
The number of items sold at a clothing store and the price of
each item are given below. Use a matrix operation to determine
the total revenue each day.
Monday: 3 T-shirts at $10 each, 4 hats at $15 dollars each, and
1 pair of shorts at $20.
Tuesday: 4 T-shirts at $10 each, 2 hats at $15 each, and 3 pairs
of shorts at $20.
199
Revenue of a Clothing Store:Solution
Price matrix P and quantity matrix Q:
P =
_
10 15 20
_
Q =
_

_
3 4
4 2
1 3
_

_
Total revenues for the two days:
PQ =
_
10 15 20
_
_

_
3 4
4 2
1 3
_

_ =
_
110 130
_
Summary: The total revenue for Monday is $110.00 and for
Tuesday is $130.00.
200
Labor and Wage Requirements
A boat-manufacturing company has plants in Massachusetts and
Virginia. The labor-hour and wage requirements for manufactur-
ing three types of boats are recorded in these tables and matrices:
cutting assembly package
dept. dept. dept.
1 man boat 0.6 0.6 0.2
2 man boat 1.0 0.9 0.3
3 man boat 1.5 1.2 0.4
M =
_

_
0.6 0.6 0.2
1.0 0.9 0.3
1.5 1.2 0.4
_

_
MA VA
cutting $17 $14
assembly $12 $10
package $10 $9
N =
_

_
17 14
12 10
10 9
_

_
Which is the labor-hours matrix?
Interpret the entry in row 1, column 3 of the matrix M.
201
Labor and Wage Requirements, continued
M =
_

_
0.6 0.6 0.2
1.0 0.9 0.3
1.5 1.2 0.4
_

_ N =
_

_
17 14
12 10
10 9
_

_
Compute the entry in row 1, column 2 of MN.
Interpret the entry in row 1, column 2 of MN.
202