t

ien (x2, y2)

Fact card 2 5/3/10 16:34 Page 1

rad
eg
tiv
P osi

y 2 – y1
m=
Differentiation Graphs of Common(xFunctions
,y)
x 2 – x1
1 1

y = f(x) dy y = mx + c; m = gradient; c = vertical intercept

= f’(x)

Studying Economics
dx
Linear

k, constant 0 y 2 – y1
t m=
x 1 gra
d ien (x2, y2) (x1, y1) x 2 – x1
ve
siti
2x Po Ne
x2 gat
ive
y – y1 gra
(x2, y2)
x3 3x2 m= 2
(x1, y1) die
nt
x 2 – x1
xn, any constant n nxn–1
ex ex = y
e kx ke kx = ky
y – y1
e f (x) f’(x)e f(x) m= 2
e ≈ 2.7183 is the exponential
x 2 – x1 constant
Exponential functions
(x1, y1)
ln x 1/x Ne
gat
d ln kx = logdukx dv d 1/x du dv
ive
gra
(u( x) ± v( x )) = e ± (u( x) ± v( x )) = die (x2, y2)
dx ln f(x) dx dx dx f’(x)/f(x) dx dx
nt
±
d du dv
(u( x) ± v( x )) =
dx dx dx
d d d u d v d f d
±
(u( x) ± v((xk)) =f ( x )) ± d f
=k ( k f ( xmultiples
)) = k
dx dx dx dx dx dx dx
df
The sum–difference rule Constant
d du dv d
(u( x) ± v( x )) = ( k f ( x )) = k
dx d
df x d x d x d x
d
±
k ) = u dv + v du
( k f ( x ))d =(uv dfor k constant dv du
dx dx dx (uv) = u +v Graph of y = e x showing Graph of y = e –x showing
dx dx dx dx dx
df
Thedproduct
( k f ( x ))rule
=k d
( uv ) = u
d v
+ v
du exponential growth exponential decay
dx dxdu d v dx d x dvdx
The quotient rule
d dv dv u – u du
(uv) = u d  u+ v –u
v d  u
dx dx  = dxdx 2 dx dx dx
d
dx
d  u
The chain
dx dvv
(uv) = u
v
rule
dx
If y = y(=u), where
–u
+v
dudx dvdx
dx
2 ud=
du v

u( x ), then
 =
dx  v 
d  u
 =
dx  v 
dy dy . du
du 2 dv
v v–u
dx
v2
=), where u = u( x ), then
If y = y(u
dx

dy dy . du
=
Quadratic functions y = ax2 + bx + c
Maths for
dx  v  duv v d x d u dx dx du dx
d  u
 =
dx  v 
v
d x
–u

v2
If y = y(u), where u = u( x ), then
d x
dy dy . du
Integration =
dx du dx
If y = y(u), where u = u( x ), then
dy dy . du
=
dx du dx Economics
d y dy . du f ( x ) dx
If y = y(u), where u = uf((xx)), then
PRINCIPLES AND FORMULAE
=
dx du dx
∫
k, (any) constant c kx + c (1) b2 – 4ac < 0; (2) b2 – 4ac = 0; (3) b2 – 4ac > 0
x2
x +c
2
x3
x2 +c TC = a + bq – cq2 + dq3 y = a/x = ax–1
Total cost functions Inverse functions

3
x n+1
x n, (n = –1) +c
A lifeline for economics students
n+1 www.studyingeconomics.ac.uk
x = 1/x
–1
ln x + c ap–1
e e +c
q = a/p =
x x

e kx Economics
e kx +c Network
k
www.economicsnetwork.ac.uk www.mathcentre.ac.uk
Fact card 2 5/3/10 16:34 Page 2

Arithmetic Algebra Sigma Notation

When multiplying or dividing positive and negative The Greek capital letter sigma ∑ is used as an abbreviation
numbers, the sign of the result is given by: a(b + c) = ab + ac a(b – c) = ab – ac for a sum. Suppose we have x1 + xn2values:
. . . xn x1, x2, ... xn and we
Removing brackets

+ and + gives + e.g. 6 x 3 = 18; 21 ÷ 7 = 3 wish to add them together. The sum
(a + b)(c + d) = ac + ad + bc + bd
– and + gives – e.g. (–6) x 3 = –18 (–21) ÷ 7 = –3 x + x . . . xn n
(a + b)2 = a2 + b2 + 2ab; (a - b)2 = a2 + b2 – 2ab x1 + 1x2 x. .2+
. xn is written ∑ x i
+ and – gives – e.g. 6 x (–3) = –18 21 ÷ (–7) = –3 1 x2 . . . xn i =1
– and – gives + e.g. (–6) x (–3) = 18 (–21) ÷ (–7) = 3 (a + b)(a – b) = a2 – b2 n
+ xx2ni . through
n
Note that x ∑ . . xn
∑ 1xii=iruns
1x ∑+ x . . . 3x
all integers (whole numbers) from
1 to n. i =So, x i means x1 + x 2 + x 3
1 for instance
1 i2 n
ni =1
x i n i =1
Formula for solving a quadratic equation ∑
3
– b ± b2 – 4 ac 3 ∑ x means
First: brackets If ax2 + bx + c = 0, then x = 3i x +i =x1 x.∑ +xxi 2 + x 3
Order of calculation
x12 +i =.1x.125xx+
∑
2a ∑ xi =i 1means x1 means n + x 3x + x
Second: x and ÷ i =1 i
∑ 1i means
2 2 3 12 + 2 2 + 3 2 + 4 2 + 5 2
3i =1
∑
Third: + and – n
2 ∑ x i 3means x i x21 +3x22++4x23+ 5 2
5 i = 1
am 2 i 5 imeans
=1 ∑2 x1i means
∑2 + 2 2 +
5
3 22+2x+ 41 2++2x 25 2+ 2x 3 2
Laws of indices

( a m )n = a mn
Example

a m a n = a m+n = am– n ∑ ii =1means 2 i1

∑ i means =1 + 2 1+2 +
i = 1
∑ ni3=1+x i4 +x15+ x 2 + . . . + x n
∑
a n i =1
5i =1 x= =
2n
numerator i 2 n53means 1 2
+ 2 2
+ 3 + 4 2
+ 522 2 n
1 x means
Fractions
This notation x2i i isx1often + x + x
. . + x
2. inx nstatistical
Fraction =
denominator a0 = 1 a– m = a1 / n = n
a a m / n = n am x∑=i1=1i∑
i= n
x=i1 i n xmeans
i = 1
= 1 + 2 + 3 + 4 + 5 calculations. The
221 used
1 + x 2x+ .+. .x+ x+n. . . + x
2 2
3
∑
x =mean n =i =1nx iquantities, 1 n 2 xn1, x2, ...n and2 xn is n
∑ ∑
am xn =of
i = ∑the
1 = n
n ∑ni =1 ( x i – x ) ∑ i =1 x i 2
5 ∑ n x var( x21 x+) x=22 + . 2. . + n x2n 2 = – x2
x∑=i n means n
=
x i =–12 xx1i) += 2xn 1∑++nni=3x122 + x+i 42. . . +
+ x52n
2 i =1 n i
n ∑ 1=n(∑
2
y = log b x means b y = x and b is called the base var( x )∑i==i 1=1 ix(=∑ x i n– xi n )( x – ∑ =)i2=1 x∑ i nn x2– 2x
Laws of logarithms
To add or subtract two fractions, first rewrite each fraction var( x ) var( x
Adding and subtracting fractions
= x ) = i =n1 i = n i =–1 x i – x 2
so that they have the same denominator. Then, the e.g. log 10 2 = 0.3010 means 100.3010 = 2.000 to 4 sig figures n is n n= nx 2x )
∑∑ 1 x(nxi i – xx1sd ) +(x )∑
x =n. . .var(
2
nn
+ +x
numerators are added or subtracted as appropriate and var( x )x== i i==1∑ = ( x i – x=2) 2 i =1∑ ni n –x ix2 2 2
The variance
Logarithms to base e, denoted loge, or alternatively ln, n in n n
sdvar(
(x ) =) =var(x ) n
x = i =1 –x
=1
the result is divided by the common denominator: e.g. are called natural logarithms. The letter e stands for the sd(x ) =sd(var( x ) n
4 3 16 15 31 exponential constant, which is approximately 2.7183. x ) = var(x )
+ = + = i.e. the mean ∑ n of( xthe i –x squares
) 2 ∑ niminus x 2 the square of the mean
5 4 20 20 20
A var(sd x )(= x ) =i =1var(x ) = =1 i – x 2
ln AB = ln A + ln B ; ln = ln A – ln B ; ln A n = n ln A sd(x ) =deviationn var(x ) n
The standard (sd) is the square root of the
15
3 5 fractions B
= variance:
4 3 716 1115 77 31
To
+ multiply
+ two
= fractions, multiply their numerators and
Multiplying
=
5 4 20 20 20 sd(x ) = var(x )
then multiply their denominators: e.g.
Proportion and Percentage
3 2 3 3 9 Note that the standard deviation is measured in the same
35 ÷ 53 = 15 = To convert a fraction into a percentage, multiply by 100
4 3 =16 15 5 2 1031 5
and express result asisa 5percentage. units as x.
7+ 11= 77+ = as a the
percentage An example is:
100 = 62.5%
5 4 20 20 20 8 8
5 5
as a percentage is 100 = 62.5%
3 2
÷
3 fractions
=3
3
5 9
= 15 8 8
2= 77
The Greek Alphabet
To
5 divide two fractions, invert the second and then
Dividing
3 7 5 11 10
multiply: e.g. Α α alpha iota rho
1 1 1 3
Some common conversions are
Ι ι Ρ ρ
3 2 3 3 9 = 10% = 25% = 50% = 75% beta kappa Σ σ sigma
÷ = = 10 4 2 4
Β β Κ κ
5 3 5 2 10 1 1 1 3 gamma lambda tau
= 10% = 25%an alternative
= 50% way = 75%
10Ratios are simply
4 2 4 of expressing
Γ γ Λ λ Τ τ
delta Μ µ mu Υ υ upsilon
fractions. Consider dividing £200 between two people in
∆ δ
the ratio of 3:2. This means that for every £3 the first person epsilon nu phi
1 + x + x2 + x3 + x4 + … = 1/(1–x )
Series (e.g. for discounting)
Ε ε Ν ν Φ φ
gets, the second person gets £2. So the first gets 3/5 of the zeta xi chi
1 + x + x2 + x3 + … + xk = (1–x k+1 ) /(1–x)
total (i.e. £120) and the second gets 2/5 (i.e. £80).
Ζ ζ Ξ ξ Χ χ
Η η eta omicron Ψ ψ psi
(where 0 < x < 1 )
Generally, to split a quantity in the ratio m : n, the quantity
Ο ο
theta pi Ω ω omega
is divided into m/(m + n) and n/(m + n) of the total.
Θ θ Π π