siti

Po

y = f(x)

dy
= f(x)
dx

k, constant

3x2

xn, any constant n

nxn1

ex

ex = y

e kx

ke kx = ky

f (x)

ie
rad

nt

(x2, y2)

1/x

x2
+c
2

x2

x3
+c
3

x n, (n = 1)

x n+1
+c
n+1

x 1 = 1/x
e

kx

(x1, y1)
Ne

y y1
m= 2
x 2 x1

(x1, y1)

Ney = e x
gat
ive
g

y 2 y1
x 2 x1

Economics
Network
Supporting economics in higher education

yg= e x
ativ

eg

rad
i

(x2, y2)

ent

1
1

y = ex
rad
i

(x2, y2)

ent

(1)

(2)

if a is positive

(3)

e x

ex

Graph of y x
= showing
y=e
exponential growth

Graph of y =
showing
exponential
decay x
b / 2a

Quadratic functions y = ax2 + bx + c

1

(1)
(2)

if a is positive

b / 2a

(3) x

b / 2a

if a is negative

(1) b2 4ac < 0;

(2) b2 4ac = 0;

TC = a + bq

PRINCIPLES AND FORMULAE

(3) ba2=fixed
4 ac cost
>0

Inverse functionsOutput (q )

Total cost functions

cq2

(2)

Maths for
Economics

(1)

b / 2a

x
(3)

TC

Integration

kx + c

m=

y Exponential functions
y y1
m= 2
1
e 2.7183
is the exponential
x 2 x1 constant
(x
,
y
)
1 1
c

ln kx = logdukx dv d 1/x
d
du dv
(u( x) v( x )) = e
(u( x) v( x )) =

dx
dx dx dx f(x)/f(x)
dx dx
ln f(x)
d
du dv
(u( x) v( x )) =

dx
dx dx
d
du dv df
d
d
f
d
(u( x) v((xk)) =f ( x )) rule
=k
The sumdifference
Constant
( k f ( xmultiples
)) = k
dx
dx dx dx
dx
dx
dx
df
d
du dv
d
( k f ( x )) = k
(u( x) v( x )) =

d
x
d
x
dx
d
x
d
x
df
d
dv
du
dfor k constant
( k f ( x ))d =(uv
k ) = u dv + v du
v
uv
u
(
)
=
+
dx
dx dx
dx
dx
dx
dx
dx
df
dv
du
d
Thedproduct
The quotient
( k f ( x ))rule
=k
(uv) = u rule
+v
dx
dxdu
x
d
dx
d
v
du
dvdx
d
dv
dv u u
v
u
(uv) = u
d u+
v dx
d
u
d
x

d
x
dx
dx
dx = dx 2
=
du 2 dv
dx dvv
dx v
du v
d
v vu
(uv) = u
+v
d u
dx
dx
dx
The chain
rule
=
dudx dvdx
dx v
v
u
v2
d u
d
y
d
y
dx
dx
. du u = u( x ), then dy = dy . du
If y = y(=u), where
u = u( x ), then
=), where
If y = y(u
du 2 dv
dx v
dx du dx
dx du dx
v v u
d u
dy dy . du
dx
dx
If y = y(u), where u = u( x ), then
=
=
2
dx v
v
dx du dx
dy dy . du
If y = y(u), where u = u( x ), then
=
dx du dx
dy dy . du f ( x ) dx
If y = y(u), where u = uf((xx)), then
=

dx du dx
k, (any) constant c

f(x)e f(x)

ln x

y
g
ve

2x

y = mx + c; m = gradient; c = vertical intercept

Linear

siti
Po

x3

x2

y 2 y1

c
(x , y )
m=
Graphs of Common
Functions
x 2 x1

Differentiation

dq3

x
(3)

TC
if a is negative

(2)
(1)

ln x + c

y = a/x = ax1

Example: Unit price

elasticity of demand

q = a/p = ap1

e +c
e kx
+c
k

a = fixed cost
Output (q )

This leaflet has been produced in

conjunction with mathcentre

www.mathcentre.ac.uk

Arithmetic

Algebra

When multiplying or dividing positive and negative

numbers, the sign of the result is given by:

Removing brackets

+ and + gives +
and + gives
+ and gives
and gives +

(a + b)(c + d) = ac + ad + bc + bd

e.g. 6 x 3 = 18;
e.g. (6) x 3 = 18
e.g. 6 x (3) = 18
e.g. (6) x (3) = 18

21 7 = 3
(21) 7 = 3
21 (7) = 3
(21) (7) = 3

a(b + c) = ab + ac

Sigma Notation

a(b c) = ab ac

(a + b)2 = a2 + b2 + 2ab;

(a - b)2 = a2 + b2 2ab

(a + b)(a b) = a2 b2
Formula for solving a quadratic equation

If ax2 + bx + c = 0, then x =

brackets
x and
+ and

Laws of indices

a m a n = a m+n

Fractions
Fraction =

numerator

a0 = 1

denominator

Adding and subtracting fractions

To add or subtract two fractions, first rewrite each fraction
so that they have the same denominator. Then, the
numerators are added or subtracted as appropriate and
the result is divided by the common denominator: e.g.
4 3
16 15
31
+ =
+
=
5 4
20 20
20

a m =

am
an
1
am

3 5 fractions
15
Multiplying
=
4 3 716 1115 77 31
To
+ multiply
=
+ two
= fractions, multiply their numerators and
5 4
20 20
20

then multiply their denominators: e.g.

3 2
3 3
9
=
35 53 = 15
5
2
10
=
4 3
16 15
31
7+ 11= 77+
=
5 4
20 20
20

Dividing
3 2
3 fractions
3
9
=3

= 15

5 divide
3 7 5 11
2= 77
10
To
two
fractions,
invert the second and then
multiply: e.g.
3 2
3
=
5 3
5

3
9
=
2
10

Series (e.g. for discounting)

1 + x + x2 + x3 + x4 +
1 + x + x2 + x3 + + xk
(where 0 < x < 1 )

= 1/(1x )
= (1x k+1 ) /(1x)

( a m )n = a mn

= am n

a1 / n =

a m / n = n am

Laws of logarithms
y = log b x means b y = x and b is called the base
e.g. log 10 2 = 0.3010

means 100.3010 = 2.000 to 4 sig figures

Logarithms to base e, denoted loge, or alternatively ln,

are called natural logarithms. The letter e stands for the
exponential constant, which is approximately 2.7183.

ln AB = ln A + ln B ; ln

b b2 4 ac
2a

A
= ln A ln B ; ln A n = n ln A
B

Proportion and Percentage

To convert a fraction into a percentage, multiply by 100
5
and express
result asisa 5percentage.
An example is:
as a the
percentage
100 = 62.5%
8
8
5
5
as a percentage is
100 = 62.5%
8
8
Some common conversions are
1
1
1
3
= 10%
= 25%
= 50%
= 75%
10
4
2
4
1
1
1
3
= 10%
= 25%an alternative
= 50% way
= 75%
10Ratios are simply
4
2
4 of expressing
fractions. Consider dividing 200 between two people in
the ratio of 3:2. This means that for every 3 the first person
gets, the second person gets 2. So the first gets 3/5 of the
total (i.e. 120) and the second gets 2/5 (i.e. 80).

Generally, to split a quantity in the ratio m : n, the quantity

is divided into m/(m + n) and n/(m + n) of the total.

i =1

Order of calculation
First:
Second:
Third:

The Greek capital letter sigma is used as an abbreviation

for a sum. Suppose we have
x1 + xn2values:
. . . xn x1, x2, ... xn and we
wish to add them together. The sum
n
x + x . . . xn
x1 + 1x2 x. .2+
. xxn .is
written x i
.
.
x
1
n
2

x
+ xx2ni . through
. . xn
all integers (whole numbers) from
Note that
1xii=iruns
1x + x . . . 3x
i2
1
n
i
=
1
1 to n. So, forni =instance
x i means x1 + x 2 + x 3
1
3
x i n i =1
3 x means
+xxi 2 + x 3
3i x +i =x1 x.
x12 +i =.1x.125xx+
x 3x + x
xi =i 1means
n +
x1i means
2 2
3 12 + 2 2 + 3 2 + 4 2 + 5 2
i =1
1i means
i3=1
n
Example
i =1
5
2 x i 3means
x i x21 +3x22++4x23+ 5 2
5
2 +
=1 2 x1i means

2 i 5 imeans
2 2 +
i
=
1
i
means
1
+
2
3 22+2x+
41 2++2x 25 2 2x 3 2
2
i =1 i means
i =1
1+2 +
ni3=1+x i4 +x15+ x 2 + . . . + x n
i =1
5i =1
=
x=
i 2 n53means
12 ++x222++.x3. 2.2n++xx422 + 522 2 n
n
x
x
means
x
2

This
notation
is
often
used
in
statistical
1 121 + 22 + 3n3 + 4 + 5 calculations. The
i=
x=i =i11i ni ixmeans
=i1=1i
=
x
1 + x 2x+ .+. .x+ x+n. . . + x
the
n
=
x =mean
of
i =1nx iquantities,
i
=
1
2 xn is n
= n1 n 2xn1, x(2x, ...nand
xn =
i =1 x i 2
i x)
n
n
1
=
i
n
x+) x= + . . . + x
5
=
x2
var(
x
x
i
i =1 n
21
22
2 n2n
2
n
=
x=i 2n means
2
n
1
+
2
+
3
+
4
+
5
2
x
x i =1 x i) xn 1+ni =x122 x+i . . . x2n
n 1=n(
x n xi ) 2 =
var( x )i==i 1=1 ix(=
=2 x i nn x2 2x
= x ) = i i =n1 n( x i = x )i =1=
var( x ) var(
n i =1 x i x 2
n
n
The variance
is
n
nx 2x )
2
nn
=n. . .var(
) +(xx )
+
+x
1 x(nxi i xx1sd
= ( x i x=2) 2 i =1 ni n x ix2 2 2
var( x )x== i i==1
1
=
i
n n
n = n i =1
x ) =var(
x
x) n
sdvar(
(x ) =
n
x
x
sd( ) =sd(var(
)
x ) = var(x )
i.e. the mean
squares
) 2 niminus
x 2 the square of the mean
n of( xthe
i x
x )(=
= =1 i x 2
var(sd
x ) =i =1var(x )
n var(x )
n
sd(x ) =deviation
(sd) is the square root of the
The standard
variance:

sd(x ) = var(x )
Note that the standard deviation is measured in the same
units as x.

The Greek Alphabet

alpha

beta

gamma

delta

mu

upsilon

epsilon

nu

phi

zeta

xi

chi

eta

omicron

psi

pi

omega

theta

iota

kappa

sigma

lambda

rho
tau