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RSG CLASSES

ECONOMICS (H) SEM-3

ADVANCE MATHEMATICAL METHOD OF ECONOMICS

BY RAHUL SIR
(SRCC GRADUATE , DSE ALUMNI)

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INDEX

Chapter No Chapter Name Page No

1. INTEGRATION 3-15
2. CONSTRAINT 16-34
OPTIMIZATION
3. LINEAR 35-53
PROGRAMMING
4. DIFFERENCE 54-63
EQUATION
5. DIFFERENTIAL 64-75
EQUATION

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chapter -1
integration

Evaluate the following integrals:

𝟑 𝟑
𝟐 𝟐
1. ∫(√𝑥 + √𝑥 + 1) 𝑑𝑥 𝑨𝒏𝒔. : 𝒙𝟐 + (𝒙 + 𝟏)𝟐 + 𝒄
𝟑 𝟑
𝟑 𝟑
𝟐 𝟐
2. ∫(√𝑥 + √𝑥 − 1) 𝑑𝑥 𝑨𝒏𝒔. : 𝒙𝟐 + (𝒙 − 𝟏)𝟐 + 𝒄
𝟑 𝟑
𝟑 𝟑
𝟏 𝟏
3. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : (𝒙 + 𝟏)𝟐 − (𝒙 − 𝟏)𝟐 + 𝒄
√ √ 𝟑 𝟑
𝒙𝒂 𝟏 𝒂𝒙
4. ∫(𝑒 +𝑒 ). 𝑑𝑥 𝑨𝒏𝒔. : + +𝒄
𝒂 𝟏 𝐥𝐨𝐠 𝒂

5. ∫ . 𝑑𝑥 [𝑨𝒏𝒔. : 𝟐𝒆𝟐𝒙 − 𝟗𝒆𝒙 + 𝒆 𝟑𝒙

+ 𝒄]
.( )
6. ∫ . 𝑑𝑥 [𝑨𝒏𝒔. : 𝟑𝒆𝒙 + 𝒆𝟑𝒙 + 𝒄]
𝒙𝟑 𝒙𝟐
7. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : + + 𝒙 + 𝐥𝐨𝐠|𝐱 − 𝟏| + 𝐜
𝟑 𝟐

8. ∫ . 𝑑𝑥 [𝑨𝒏𝒔. : 𝟐𝒍𝒐𝒈|𝐱 + 𝟏| − 𝐱 + 𝐜]

𝒙𝟒 𝒙𝟑 𝒙𝟐
9. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : + + − 𝒙 + 𝐥𝐨𝐠|𝐱 + 𝟏| + 𝐜
𝟒 𝟑 𝟐

Method of Substitution

10. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 𝐱𝟐 + 𝟗𝐱 + 𝟏𝟎 + 𝐜

11. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 𝟑𝐱𝟐 − 𝟖𝐱 + 𝟓 + 𝐜

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𝟏
12. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 𝟏 + 𝐱𝟔 + 𝐜
𝟔

𝟐𝒙𝟐 𝟑
13. ∫√ . 𝑑𝑥 𝑨𝒏𝒔. : +𝒄
𝟐

14. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝟐𝒍𝒐𝒈 𝟏 + √𝐱 + 𝐜

√

𝟐
15. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : (𝟐 + 𝒍𝒐𝒈𝒙)𝟑/𝟐 + 𝐜
𝟑
/
𝟏/𝒙
16. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝒆 +𝐜
𝟏 𝟐
17. ∫ 𝑒 𝑥 . 𝑑𝑥 𝑨𝒏𝒔. : 𝒆𝒙 + 𝐜
𝟐

18. ∫ . 𝑑𝑥 [𝑨𝒏𝒔. : 𝐥𝐨𝐠|𝐞𝐱 + 𝐞 𝐱 | + 𝐜]

19. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 𝐞𝐱/𝟐 + 𝐞 𝐱/𝟐

+𝐜
𝐞𝐱
20. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 +𝐜
𝟏 𝐞𝐱
𝟓 𝟑
(𝒙 𝟐)𝟐 𝟐(𝒙 𝟐)𝟐
21. ∫ 𝑥 . √𝑥 + 2. 𝑑𝑥 𝑨𝒏𝒔. : 𝟐 − +𝐜
𝟓 𝟑

( ) (𝟐𝒙 𝟑)𝟑/𝟐 𝟏𝟏(𝟐𝒙 𝟑)𝟏/𝟐

22. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : − +𝐜
√ 𝟐 𝟐

Integration by Parts

23. ∫ 𝑥. 𝑒 . 𝑑𝑥 [𝑨𝒏𝒔. : 𝒆𝒙 . (𝒙 − 𝟏) + 𝐜]
𝟐𝒙.𝒆𝟓𝒙 𝟐𝒆𝟓𝒙
24. ∫ 2𝑥. 𝑒 . 𝑑𝑥 𝑨𝒏𝒔. : − +𝐜
𝟓 𝟐𝟓

25. ∫ 𝑙𝑜𝑔𝑥 . 𝑑𝑥 [𝑨𝒏𝒔. : 𝒙. (𝒍𝒐𝒈𝒙 − 𝟏) + 𝐜]

26. ∫ 𝑙𝑜𝑔𝑥 . 𝑑𝑥 [𝑨𝒏𝒔. : 𝟐𝒙. (𝒍𝒐𝒈𝒙 − 𝟏) + 𝐜]
27. ∫(𝑙𝑜𝑔𝑥) . 𝑑𝑥 [𝑨𝒏𝒔. : 𝒙. (𝒍𝒐𝒈𝒙 − 𝟏) + 𝐜]
𝒙𝟐 𝐱𝟑
28. ∫(1 − 𝑥 ) 𝑙𝑜𝑔𝑥. 𝑑𝑥 𝑨𝒏𝒔. : 𝒙. 𝟏 +
𝟑
. 𝐥𝐨𝐠𝐱 −
𝟗
−𝐱+𝐜

29. ∫ 𝑒 . (1 + 𝑥 ) log(𝑥𝑒 ) . 𝑑𝑥 [𝑨𝒏𝒔. : 𝒙. 𝒆𝒙 . (𝐥𝐨𝐠(𝒙. 𝒆𝒙 ) − 𝟏 + 𝐜]

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Integration by Partial Fractions

𝟓
𝟓 𝐥𝐨𝐠|𝒙 𝟐|𝟓
𝟔
30. ∫( ).(
. 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠|𝒙 + 𝟏| + 𝐥𝐨𝐠 |𝒙 + 𝟐| + 𝐜
) 𝟑 𝟐

𝟑 𝟏
31. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠|𝒙| − 𝐥𝐨𝐠 |𝒙 + 𝟐| + 𝐜
.( ) 𝟐 𝟐
𝟏
32. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠|𝒙| − 𝐥𝐨𝐠 |𝟏 − 𝟐𝒙| + 𝐜
( ) 𝟐

33. ∫( . 𝑑𝑥 [𝑨𝒏𝒔. : 𝒙 − 𝐥𝐨𝐠|𝒙 − 𝟏| + 𝟒𝒍𝒐𝒈 + 𝒙 − 𝟐| + 𝐜]

).( )

𝒙𝟐 𝟏 𝒙
34. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : − 𝐥𝐨𝐠 +𝐜
𝟐 𝟏 𝒙
𝟏 𝒙𝟐 𝟏
35. ∫( . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 +𝐜
).( ) 𝟐 𝒙𝟐 𝟑

𝟏𝟏 𝟒 𝟕
36. ∫( . 𝑑𝑥 𝑨𝒏𝒔. : . 𝐥𝐨𝐠|𝒙 − 𝟏| − + 𝐥𝐨𝐠 |𝐱 + 𝟐| + 𝐜
) .( ) 𝟗 𝟑(𝒙 𝟏) 𝟗

𝟑 𝟓 𝟑
37. ∫( . 𝑑𝑥 𝑨𝒏𝒔. : . 𝐥𝐨𝐠|𝒙 + 𝟑| + . 𝐥𝐨𝐠 |𝐱 − 𝟏| − +𝐜
) .( ) 𝟐 𝟐 𝐱 𝟏
𝟐𝒍𝒐𝒈𝒙 𝟏
38. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : 𝐥𝐨𝐠 +𝐜
( ( ) ) 𝟑𝒍𝒐𝒈𝒙 𝟐

Definite Integrals
𝟒
39. ∫ (2𝑥 − 𝑥 ). 𝑑𝑥 𝑨𝒏𝒔. :
𝟑

40. ∫ (7𝑥 + 2). 𝑑𝑥 [𝑨𝒏𝒔. : 𝟒]

41. ∫ . 𝑑𝑥 [𝑨𝒏𝒔. : 𝟏]
𝟗𝟖
42. ∫ (𝑥 + 2) . 𝑑𝑥 𝑨𝒏𝒔. :
𝟑

43. ∫ (𝑒 − 𝑒 ). 𝑑𝑥 [𝑨𝒏𝒔. : 𝟎]
𝟓
44. ∫ . 𝑑𝑥 𝑨𝒏𝒔. :
𝟑

𝒆𝟐
45. ∫ 𝑒 . 𝑑𝑥 𝑨𝒏𝒔. : (𝒆𝟑 − 𝟏)
𝟑
𝟑
46. ∫ 2 . 𝑑𝑥 𝑨𝒏𝒔. :
𝐥𝐨𝐠 𝟐

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𝟏
47. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : (√𝟐 − 𝟏)
√ 𝟐
𝒆 𝟏
48. ∫ 𝑥𝑒 . 𝑑𝑥 𝑨𝒏𝒔. :
𝟐𝒆

49. ∫ . 𝑑𝑥 𝑨𝒏𝒔. : √𝟐 − 𝟏
√

LIBNIEZ FORMULA

1. Solve the below question using Libniez Formula

a. ∫ x 2 dx b. ∫ e  x 2 dx c. ∫– e  x 2 dx

/
1
d. ∫√ 𝐼𝑛 𝑥 𝑑𝑥 e. ∫ / x 6 dx f. ∫ dx
x4  1

𝒕 𝟏/𝟐 𝟏 𝟏 𝟐
𝒕𝟐 𝒕𝟐
[Ans.: a) 𝒕𝟐 , b)−𝒆 ,c) 2𝒆 , d) Int (1- ) ,e) 𝒕𝟒/𝟑 - 𝒕𝟏/𝟔 ,f) ]
𝟒 𝟑 𝟔 𝒕𝟒 𝟏

AREA UNDER THE CURVE

Find The Area of region bounded of the below question

1. f(x)= 3x2 in [0, 2] [Ans.: 8] 2.f(x) = x6 in [0, 1] [Ans:.1/7]

3. f(x)= ex in [-1, 1] [Ans.: e-1/e] 4.f(x) = 1/x2 in [1, 10] [Ans.: 9/10]

5. f(x)= x3 in [-1, 1] [Ans.: 1/2] 6. f(x) = 1/x in [-1, 10] [Ans.: does not exist]

7. Compute the area bounded by the graph of f (x) = 1/x3, the axis, and the
lines x = -2 and x = -1. [Ans.: 3/8]

8. Compute the area of A bounded by the graph of f(x) = (ex + e-x), the x-axis,
and the lines x = -1 and x = 1. [Ans.: e-1/e]

9. Find the area between the two parabolas defined by the equations y + 1 =
(x − 1) and 3x = y . [Ans.: 6]

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10. Compute the area of bounded by the graph of f(x) = (ex - e-x), the x-axis,
and the lines x = -1 and x = 1. [Ans.: e-1/e]

11. Find the area of the region bounded by y =2x-𝑥 and the x-axis using
integration? [Ans.: 4/3 sq units]
12. Find the area of the region included between the parabola y = and
the line 3x-2y+12=0? [Ans.: 27 sq units]
13. Find the area of the region included between the parabola 𝑦 = 4𝑎𝑥 and
𝑥 = 4𝑎𝑦 where a > 0? [Ans.:16𝒂𝟐 /3 sq units]
14. Find the area of the region bounded by the curves y=𝑥 + 2, y=x,
x=0, x=3? [Ans.: 21/2 sq units]
15. Find the area of the region {(x, y): 𝑥 ≤ 𝑦 ≤ |𝑥|} ? [Ans.: 1/3 sq units]
16. Find the area of the region bounded by the curves y=x and y=𝑥 ?
[Ans.:1/2 sq units]
17. Find the area of the region bounded by the lines 2y= -x+8 and the x-
axis and the lines x = 2 and x = 4? [Ans.:5 sq units]
18. Find the area of the region bounded by the region x+2y=2, y-x=1,
2x+y=7? [Ans.:6 sq units]
19. Using integration, find the area of the bounded region by the following
curves: y=1+|𝑥 + 1|, x= -3, x=3, y=0? [Ans.:16 sq units]
20. Using integration, find the area of the bounded region by the following
curves: y=|𝑥 + 1|, x= -3, x=1, y=0? [Ans.: 4 sq units]
21. Using integration, find the area of the bounded common region of the
𝟒√𝟑 𝟏𝟔𝝅
circle 𝑥 + 𝑦 = 16 𝑎𝑛𝑑 𝑡ℎ𝑒 𝑝𝑎𝑟𝑎𝑏𝑜𝑙𝑎 𝑥 = 6𝑦? [Ans.: + sq units]
𝟑 𝟑
22. Find the area of the bounded region by the curves:
Y=6x-𝑥 and y=𝑥 − 2𝑥? [Ans.: 64/3 sq units]
23. If the area enclosed between the curves y= a𝑥 𝑎𝑛𝑑 𝑥 = 𝑎𝑦 (a > 0) is 1
𝟏
square unit, then find the value of a? [Ans.: a= ]
√𝟑
24. Find the area bounded by the curve y=x|𝑥|, x-axis and the ordinate x= -
3 and x=3? [Ans.: 18 sq units]
25. Use the method of integration find the area bounded by the curve |𝑥| +
|𝑦| =1 [Ans.: 2sq units]

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APPLICATIONS OF INTEGRATION

To find Cost Function and Average Cost Function, given MC

1. The marginal cost of production is found is found to be MC = 2000 – 40x +
3x2, where x is the number of units produced. The fixed cost of production is
Rs. 18,000. Find the total cost function and the average cost function.

𝑨𝒏𝒔. : 𝑪 = 𝟐𝟎𝟎𝟎𝒙 – 𝟐𝟎𝒙𝟐 + 𝒙𝟑 + 𝟏𝟖𝟎𝟎𝟎; 𝑨𝑪 = 𝟐𝟎𝟎𝟎 – 𝟐𝟎𝒙 + 𝒙𝟐 +

𝟏𝟖𝟎𝟎𝟎
𝒙

2. The marginal cost function is given by MC = 2e0.001x. Find the total cost
function if fixed cost is Rs. 2,000. [𝑨𝒏𝒔. : 𝑪 = 𝟐𝟎𝟎𝟎𝒆𝟎.𝟎𝟎𝟏𝒙 ]
3. The marginal cost of a product is given by MC = 2 + 3e x, where x is the
number of units produced. Find the total cost of production when x = 4, if
the fixed cost is Rs. 200. [𝑨𝒏𝒔. : 𝑪 = 𝟐𝟎𝟓 + 𝟑𝒆𝟒 ]
4. The marginal cost function of a firm is MC = 3 + 2logx. Find the total cost
function when the cost of production 1 units is Rs. 21.
[𝑨𝒏𝒔. : 𝑪 = 𝒙 + 𝟐𝒙𝒍𝒐𝒈𝒙 + 𝟐𝟎]

5. If the marginal cost function is given by MC = 2(2x + 9)-1/2 and the fixed cost
is Rs. 4, find the average cost for 8 units of output. [𝑨𝒏𝒔. : 𝑹𝒆. 𝟏]
6. A factory manufacturing heavy machinery determined its marginal cost by
the function MC = 𝑥 √𝑥 + 1 and the cost is Rs. 7800 when 3 machines are
produced. Find the cost function.
𝟐 𝟓 𝟐 𝟑 𝟏𝟏𝟔𝟖𝟖𝟖
𝑨𝒏𝒔. : 𝑪 = (𝒙 + 𝟏)𝟐 − (𝒙 + 𝟏)𝟐 +
𝟓 𝟑 𝟏𝟓
To find Total Revenue Function and Demand Function given MR

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1. If the marginal revenue function for a commodity is MR = 9 – 4x2, find the

𝟒
demand function. 𝑨𝒏𝒔. : 𝒑 = 𝟗 − 𝒙𝟐
𝟑

2. If the marginal revenue function for a product is MR = 4 + e-0.03x, where

x denotes the number of units sold. Determine the total revenue from the
sale of 100 units of the product. [𝑨𝒏𝒔. : 𝑹𝒔. 𝟒𝟑𝟏. 𝟕𝟎]

3. A firm’s marginal revenue function is 𝑀𝑅(𝑥) = 20𝑒 1− . Find the

𝒙/𝟏𝟎
corresponding demand function. 𝑨𝒏𝒔. : 𝒑 = 𝟐𝟎𝒆

4. If the marginal revenue function for output x is given by 𝑀𝑅 = + 5,

( )

find the total revenue function and the demand equation.

𝟑𝒙 𝟑
𝑨𝒏𝒔. : 𝑹 = + 𝟓𝒙, 𝒑 = +𝟓
𝒙+𝟐 𝒙+𝟐

5. If the marginal revenue function is − 𝐶, find the total revenue

( )

function and show that 𝑝 = − 𝑐 is the demand function (where p is

price, x is quantity demanded and a, b and c are constants).

𝒂𝒙
𝑨𝒏𝒔. : 𝑹 = − 𝒄𝒙
𝒙+𝒃

6. A firm has the marginal revenue function given by 𝑀𝑅 = − 𝑐,

( )

where is given by 𝑥 = − 𝑏.

7. Marginal revenue function of a firm is − 𝑐. Prove that the demand

( )

law is 𝑝 = − 𝑐.

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To find Maximum Profit, given MR and MC

1. The marginal cost of production of a firm is Rs. (4 + 0.11x) and the
marginal revenue is Rs. 15. The overhead costs are Rs. 100. Find the
maximum profit the firm can earn and the level of production for this
profit. [𝑨𝒏𝒔. : 𝑹𝒔. 𝟒𝟓𝟎, 𝒙 = 𝟏𝟎𝟎]
2. The marginal cost (MC) and marginal revenue (MR) of a firm are given as
MC = 4 + 0.08x and MR = 12, where x denotes the level of output.
Compute the maximum profit of the firm given that the initial fixed cost
is Rs. 100. [𝑨𝒏𝒔. : 𝑹𝒔. 𝟑𝟎𝟎, 𝒂𝒏𝒅 𝒙 = 𝟏𝟎𝟎]
3. The marginal cost of a product is given by MC = 3x + 4, where x is the
number of units produced. The fixed cost of production is Rs. 10. Find the
cost function. If the selling price is fixed at Rs. 40 per unit, find the
revenue function and the maximum profit.
[𝑨𝒏𝒔. : 𝑹 = 𝟒𝟎𝒙 & 𝑴𝒂𝒙 𝑷 = 𝑹𝒔. 𝟐𝟎𝟔]

4. The marginal revenue and the marginal cost for an output x of a

commodity are given as MR = 5 – 4x + 3x2 and MC = 3 + 2x. If the fixed
cost is zero, find the profit function and the profit when output is x = 4.
[𝑨𝒏𝒔. : 𝑷 = 𝟐𝒙 − 𝟑𝒙𝟐 + 𝒙𝟑 ; 𝟐𝟒]

5. The marginal cost of production is found to be C’(q) = 1000 – 20q + q2,

where q is the number of units produced. The fixed cost of production is
Rs. 2,000. Find the cost function. If the manufacture fixes the price per
unit at Rs. 3,400, find the profit function and sales volume that yields the
maximum profit. Also obtain profit at this sales volume.
𝒒𝟑 𝟐 𝟐
𝒒𝟑
𝑨𝒏𝒔. : 𝑪(𝒙) = 𝟏𝟎𝟎𝟎𝒒 − 𝟏𝟎𝒒 + + 𝟐𝟎𝟎𝟎, 𝑷(𝒒) = 𝟐𝟒𝟎𝟎𝒒 + 𝟏𝟎𝒒 − − 𝟐𝟎𝟎𝟎,
𝟑 𝟑
𝒒 = 𝟔𝟎 𝒂𝒏𝒅 𝒎𝒂𝒙𝒊𝒎𝒖𝒎 𝒑𝒓𝒐𝒇𝒊𝒕 = 𝑹𝒔. 𝟏, 𝟎𝟔, 𝟎𝟎𝟎

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6. The XYZ Co. Ltd. has approximated the marginal revenue function for one
of its products by MR = 20x – 2x2. The marginal cost function is
approximated by MC = 81 – 16x + x2. Determine the profit maximizing
output and the total profit at the optimal output, assuming fixed cost as
zero. [𝑨𝒏𝒔. : 𝟗 𝒖𝒏𝒊𝒕𝒔, 𝑹𝒔. 𝟎]
7. A firm has following marginal revenue and marginal cost functions:
MR = 50 – 4x and MC = - 20 + 2x

The firm suffers a loss of Rs. 200 when no units are sold.

i) Determine total profit function.

ii) Find break-even points.
iii) Determine the profit enclosed between these two break-even points.
𝟏𝟎
𝑨𝒏𝒔. : (𝒊)𝟕𝟎𝒙 − 𝟑𝒙𝟐 − 𝟐𝟎𝟎, (𝒊𝒊)𝟐𝟎 & , (𝒊𝒊𝒊)𝟎
𝟑
To find Demand Function, given Price Elasticity of Demand
1. Deduce a demand relation which shows a constant price elasticity of
demand equal to ½. [𝑨𝒏𝒔. : 𝒑𝒙𝟐 = ]
2. Obtain the demand function for a commodity for which price elasticity
of demand is ‘k’ throughout. 𝑨𝒏𝒔. : 𝒙𝒑𝒌 = 𝒄
3. The price elasticity of demand for a commodity is p/x. Find the
demand function if the demand is 3 when the price is 1.
[𝑨𝒏𝒔. : 𝒑 = 𝟒 − 𝒙]

4. Obtain the demand function for a commodity whose price elasticity of

𝒌𝒙
demand is given by , where k is a constant. 𝑨𝒏𝒔. : 𝒑 = 𝒄𝒆

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5. The price elasticity of demand of a commodity is 𝐸 = ( )(

find
)

the corresponding demand function if the quantity demanded is 8

𝟐(𝒑 𝟐)
units when the price is Rs. 2. 𝑨𝒏𝒔. : 𝒙 =
𝒑 𝟏

6. The elasticity of demand of a commodity with respect to price is

calculated to be ( )(
(where p is the price). Find the demand
)

function, if it is known that the quantity demanded is 5 units at p = 3.

𝟓 𝒑+𝟑
𝑨𝒏𝒔. : 𝒙 =
𝟔 𝒑−𝟐

7. The elasticity of demand of a commodity is given by ( )(

, where
)

p is price. Find the demand function, if quantity demanded is 5 at p =

𝒌(𝒑 𝟐)
3. 𝑨𝒏𝒔. : 𝒙 = , 𝒌 𝒃𝒆𝒊𝒏𝒈 𝒖𝒏𝒅𝒆𝒇𝒊𝒏𝒆𝒅
𝒑 𝟑

To find Consumption Function, given MPC

1. The marginal propensity to save is given as = + , where S is

√

savings and I is income. Find the total savings S if S = 12 when I = 25.

𝟏 𝟏 𝟒𝟗
𝑨𝒏𝒔. : 𝑺 = 𝑰 + √𝑰 +
𝟒 𝟑 𝟏𝟐

2. The marginal propensity to consume is given as = − , where

√

consumption C is a function of national income I. Determine the

consumption function if it is known that consumption is 10 when I =
𝟑 𝑰
12. 𝑨𝒏𝒔. : 𝑪 = 𝑰 − +𝟑
𝟒 𝟑

Income Distribution and Present & Future Discounted Value.

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1. In the Population with incomes between a and b ,suppose the income

distribution is given by
𝑓 (𝑟) = 𝐵𝑟 . (B is positive)
𝒂 𝟎.𝟓 𝒃 𝟎.𝟓
Determine the mean income of the group. [Ans 3 ( 𝟏.𝟓 𝟏.𝟓
) ]
𝒂 𝒃
2. Let the income distribution function be that of in question 1, and let D (p
. . 𝒏𝑨𝑩 𝟏.𝟓
,r) =A𝑝 𝑟 . compute total demand. [Ans.: 𝒑 (𝒃𝟎.𝟓𝟖 − 𝒂𝟎.𝟓𝟖 )]
𝟎.𝟓𝟖

3. Assume that the rate of extraction 𝑢(𝑡) from an oil well decreases
exponentially over time., with 𝑢(𝑡) = 𝑢 𝑒 , where 𝑎 is a positive
constant. Given the initial stock 𝑥 (0) = 𝑥 , find an expression 𝑥(𝑡) for the
remaining amount of oil at time 𝑡. Under what condition will the well
never be exhausted. [Ans x(t) = 𝒙𝟎 -𝒖(𝟏 − 𝒆 𝒂𝒕)/a , 𝒙𝟎 ≥ 𝒖/a ]

4. a) follow the pattern in question 1 and find the mean income 𝑚 over there
interval [𝑏, 2𝑏] when 𝑓 (𝑟) = 𝐵𝑟 . [Ans.: 2b In2]

b) Assume that the individual’s demand function is 𝐷 (𝑝, 𝑟) = 𝐴𝑝 𝑟 , 𝐴 >

0, 𝛾 < 0, 𝛿 > 0, 𝛿 ≠1 Compute the total demand 𝑥(𝑝) ,assuming that there
𝜹 𝟏 𝟏
𝟏 𝟐
are 𝑛 individuals in the population. [Ans.: nAB𝒑𝒚 𝒃𝜹 ]
𝜹 𝟏

5. Let 𝐾 (𝑡) denote the capital stock of an economy at time 𝑡. Then net
investment at time 𝑡, denoted by 𝐼(𝑡), is given by the rate of increase 𝐾(𝑡)
of 𝐾(𝑡).

a) If 𝐼 (𝑡) = 3𝑡 + 2𝑡 + 5(𝑡 ≥ 0), what is the total increase in the capital

stock during the interval from 𝑡 = 0 to 𝑡 = 5? [Ans.: 175]

b) If 𝐾 (𝑡 ) = 𝐾 , find an expression for the total increase in the capital stock

from time 𝑡 = 𝑡 to 𝑡 = 𝑇 when the investment function 𝐼(𝑡) is as in part
(a) [Ans.:(𝑻𝟑 − 𝒕𝟎 𝟑 ) + (𝑻𝟐 − 𝒕𝟎 𝟐 ) + 𝟓(𝑻 − 𝒕𝟎 ) ]

6. Find the present and future values of constant income stream of $500
per year over the next 15 years, assuming an interest rate of 𝑟 = 6% =
0.06 annually, compounded continuously. [Ans.: 4945.25, 12163.3]

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Rahul Sir (Srcc Graduate , DSE Alumni)

7. a) find the present discounted value (PDV) of constant income stream of

𝑎 dollars per year over the next 𝑇 years, assuming an interest rate of 𝑟
annually, compounded continuously. [Ans.: (a/r) (1-𝒆 𝒓𝑻 ) ]
b) what is the limit of PDV as 𝑇 → ∞? [Ans.: a/r]

8. Find the present discounted value and future discounted value of a

constant income stream of rs 1000 per year over the next 10 years,
assuming an interest rate of r =8% compounded annually.
[Ans.: 6883.9, 15319.27]

Intial Value problem, Mean Value theorem

1. Solve the following initial-value problems:

𝟏 𝟏
a) Find 𝐹(𝑥) if 𝐹 (𝑥 ) = − 2𝑥 and 𝐹 (0) = [Ans.: 𝒙 − 𝒙𝟐 + ]
𝟐 𝟐

𝟏 𝟏 𝟏
b) Find 𝐹(𝑥) if 𝐹 (𝑥 ) = 𝑥(1 − 𝑥 ) and 𝐹 (1) = 5/2 [Ans.: 𝒙𝟐 − 𝒙𝟒 + ]
𝟐 𝟐 𝟔

2. Find the general form of a function 𝑓 whose second derivative is 𝑥 . If we

require in addition that 𝑓(0) = 1 and 𝑓 (0) = −1, what is 𝑓(𝑥)?
𝟏
[Ans.: 𝒙𝟒 − 𝒙 + 𝟏]
𝟏𝟐

3. a) Suppose that 𝑓 (𝑥 ) = 2 for all 𝑥, and 𝑓 (0) = 2, 𝑓 (0) = 1. First find

𝑓′(𝑥) and then 𝑓(𝑥). [Ans.: 𝒇′(𝒙)=2 𝒙+1 and f(𝒙) =𝒙𝟐 + 𝒙 + 𝟐 ]
b). Similarly, suppose that 𝑓 (𝑥 ) = + 𝑥 + 2 for 𝑥 > 0, and 𝑓(1) =
0, 𝑓 (1) = 1/4. Find 𝑓(𝑥).

𝟏 𝟏
[Ans.: 𝒇′(𝒙)= − + 𝒙𝟒 + 𝟐𝒙 − 𝟏 , 𝐟(𝒙) = −𝐈𝐧𝒙 + (𝟏/𝟐𝟎) 𝒙𝟓 + 𝒙𝟐 −
𝒙 𝟒
𝒙 − 𝟏/𝟐𝟎]

4. A theory of investment has used a function W defined for all T>0 by

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Rahul Sir (Srcc Graduate , DSE Alumni)

W(T) = ∫ 𝑒 𝑑𝑡 (K and 𝛿 are postive constants)

Evalaute the integral, and prove that W(T) takes the values in the
interval (0,K) and is strictly Decreasing.
[Ans.: k(1- 𝒆 𝜹𝑻 )/ 𝜹𝑻 , prove part by yourself ]

5. i) Show that if f is continuous in [a,b] , then there exists a number 𝑥 ∗ ∈

[a,b] such that

𝑓(𝑥 ∗ ) = ∫ 𝑓(𝑥) 𝑑𝑥

This is called the mean value theorem fot integral and 𝑓(𝑥 ∗ ) is called
the mean value of f in [a,b]
ii) Find the mean value of 𝑓(𝑥) =√𝑥 in [0,4] and illustrate …

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Rahul Sir (Srcc Graduate , DSE Alumni)

chapter -2
constraint optimization

Solution of constraint optimization using Lagrange Multiplier Method(Two

Variables)

1. Max 𝑧 = 5𝑥 + 6𝑦 − 𝑥𝑦 subject to g(𝑥, 𝑦) = 𝑥 + 2𝑦 = 24.

[Ans.:x=6, y=9]

2. Max z = 𝑥 + 𝑦 Subject to g(𝑥, 𝑦)= 𝑥 + 𝑦 =1. [Ans.:x=1/2, y=3/4]

3. Min Z = 𝑥 + 𝑦 subject to g(𝑥, 𝑦) = 𝑥 + 2𝑦=4 [Ans.:x=4/5, 8/5]

/ /
4. Max Z= 10𝑥 𝑦 subject to g(𝑥, 𝑦) = 2𝑥 + 4𝑦=9 [Ans.:x=27/10, 9/10]

5. Max Z= xy subject to g(𝑥, 𝑦) = 2𝑥 + 𝑦=m [Ans.:x=m/4, y=m/2]

6. Max Z= 𝑥 𝑦 subject to g(𝑥, 𝑦) = 𝑝𝑥 + 𝑦=m [Ans.:x= , y= ]

( ) ( )

7. Max(min) Z =3xy subject to g(𝑥, 𝑦) = 𝑥 +𝑦 =8 [Ans.: x= 2 , -2 ,y= 2 ,-2 ]

8. Max(min) Z= 𝑥 + 𝑦 subject to g(𝑥, 𝑦) = 𝑥 +3xy +3𝑦 =3

[Ans.:x= 3 ,-3 , y=-1 ,1]

Constartint optimization using Lagrange Multiplier and Graphical

Method(Geometrical Interpretation )

1. Consider the problem max 𝑓(𝑥, 𝑦) = 𝑥 + 𝑦 subject to 𝑔(𝑥, 𝑦) = 𝑥 + 𝑦 = 1

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Rahul Sir (Srcc Graduate , DSE Alumni)

a. Write down the Lagrangean function for the problem and solve the
necessary conditions in this case.check whether it is the optimal
solution? [Ans.:x=4/5, 8/5]
b. Explain the solution geometrically by drawing appropriate level
curves the associated minimization problemof a a solution?
[Ans.: No Maximization Solution]

2. Consider the problem

min 𝑓 (𝑥, 𝑦) = 𝑥 + 𝑦 s. t. 𝑥 + 2𝑦 = 𝑎. (𝑎 is a constant)
a. Write down the Lagrangean function for the problem and solve the
necessary conditions in this case. [Ans.:x=2a/5, a/5]

b. Also solve the problem by studying the level curves of 𝑓 (𝑥, 𝑦) = 𝑥 + 𝑦

together with the graph of the straight line 𝑥 + 2𝑦 = 𝑎 in the same
diagram. Can you give a geometric interpretation of the problem? Does
the associated maximization problem have a solution?
[Ans.: No Maximization Solution]

3. Consider the problem Max 𝑓 (𝑥, 𝑦) = 2𝑥 + 3𝑦 s. t. √𝑥 + 𝑦 = 5.

a. Write down the Lagrangean function for the problem and solve the
necessary conditions in this case. [Ans.:x=9,y =4]
b. Using the graphical method check whether above solution is optimal or
not. [Ans.: Min at x=9 ,y =4 , Max at x=0 ,y =25]

4. Consider the problem min 𝑓 (𝑥, 𝑦) = (𝑥 − 1) + 𝑦 subjected to 𝑦 −

8𝑥 = 0

a. Solve the problem by using the Langrangean method. [Ans.: x=0 ,y=0]
b. Give a geometric interpretation of the problem.

5. Consider the problem max 𝑥𝑦 subjected to 𝑥 + 𝑦 = 2.

a. Solve the problem by using the Langrangean method [Ans.:x=1 ,y=1]
b. Check using graphically whether above solution is maxima or
minima.[Ans.: Maxima]

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Solution of constraint optimization using Lagrange Multiplier Method(Two

Variables) and check for maxima and minima using Second order condition.

1. Max 𝑧 = 5𝑥 + 6𝑦 − 𝑥𝑦 subject to g(𝑥, 𝑦) = 𝑥 + 2𝑦 = 24.

[Ans.: Max at x=6, y=9]

2. Find the smallest distance between the origin and a point on the line
4𝑥 − 3𝑦 + 25 = 0 [Ans:Max at x=-4, y=3]

3. Use the Langrage method to find the extreme values of 𝑓 (𝑥, 𝑦) = 𝑥 + 2𝑦

on the circle 𝑥 + 𝑦 = 1. Verify Second order condition
[Ans.:Min at(1,0), (-1,0) ,λ=2 (Eco(H) 2017)
Max at (0,1), (0,-1) , λ=1 ,Min value=1 , Max value=2]

4. Find the maximum and minimum values that the function 𝑓 (𝑥, 𝑦) = 𝑥𝑦
takes on the constraint + = 1. Verify Second order Condition
[Ans.: Max at (2,1) (-2,-1) MaxValue=2 ]
5. 𝑓 (𝑥, 𝑦) = 5𝑥 − 3𝑦 subject to the constraint 𝑥 + 𝑦 = 136. Find the
maximum and minimum of 𝑓 (𝑥, 𝑦). Verify Second order Condition (Eco(H)
2011 [Ans.: Max at (-10,6) , Min at (10,-6)]

Economic Applications

1. Given the utility function 𝑈 = (𝑥 + 2)(𝑦 + 1), and the budget constraint
2𝑥 + 5𝑦 = 51, Find the optimal levels of x and y purchased by the
consumer also check the second order condition. [Ans.: Max at x=13, y=5]

2. A consumer enjoys two commodities x and y according to the utility

function 𝑢 = 𝑥 + 𝑦 . Find his utility if 𝑝 = 3 and 𝑝 = 4 and he has
Rs. 50 to spend on the two commodities. Also Verify the second order
condition. [Ans.: Max at x=6, y=5]

3. Find the associated demand functions of x and y from the utility function

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Rahul Sir (Srcc Graduate , DSE Alumni)

𝑢 = (𝑥 + 𝑦 ),with given budget line𝑥𝑝 + 𝑦𝑝 = 𝑀 where 0 < 𝜌 < 1.

Show that goods are substitute.
𝑴𝒑𝜶
𝒙 𝑴𝒑𝜶
𝒚 𝟏
[Ans.: x= 𝟏 , y= , 𝒘𝒉𝒆𝒓𝒆 𝜶 = ]
𝒑𝜶
𝒙
𝟏
𝒑𝜶
𝒚 𝒑𝜶
𝒙
𝟏
𝒑𝜶
𝒚
𝟏
𝝆 𝟏

4. If 𝑢 = 𝑥 𝑥 is the utility function of a consumer and 𝛽is his budget

constraint, find demand functions of the two goods by Lagrange multiple
methods.Using these demand functions, find 𝑝 + 𝑀. 𝑎𝑛𝑑 𝑝 +
𝜶.𝑴 𝜷.𝑴
[𝑨𝒏𝒔. : 𝒙𝟏 = , 𝒙𝟐 ] . Comment upon the degree of
(𝜶 𝜷)𝒑𝟏 (𝜶 𝜷)𝒑𝟐
homogeneity. (Degree of homogeneity=0 )

5. An individual's utility function is given as 𝑈 = 𝑒 where x and y denotes

the quantities of two commodities. Find demand functions of x and y.
𝑴 𝑴
[Ans.:x= ,𝒚 = ]
𝟐𝒑𝒙 𝟐𝒑𝒚

6. A consumer maximizes his utility function 𝑢 = 𝑥 𝑦 , subject to the budget

constraint 2𝑥 + 3𝑦 = 12, 𝑎𝑡 𝑥 = 3 and 𝑦 = 2. Find the values of 𝛼 and 𝛽
if the utility function is known to be linearly homogenous.
𝟏
[𝑨𝒏𝒔. : 𝜶 = 𝜷 = ]
𝟐

7. A consumer has the following utility function defined over

x and 𝑦: 𝑢(𝑥, 𝑦) = 𝑎 𝑙𝑜𝑔𝑥 + 𝑏 𝑙𝑜𝑔𝑦; 𝑎 + 𝑏 = 1. Find his demand schedules
𝒂𝑴 𝒃𝑴
for x and y. [Ans.:x= 𝒚= ]
𝒑𝒙 𝒑𝒚

8. (a) A consumer is represented by a utility function 𝑢 = 3𝑥 𝑦 . Find his

demand for the commodities x and y if 𝑝 = 2, 𝑝 = 3 and his income = 15.
[Ans.: x = y = 3]

(b) Check whether the second order condition of utility maximization is

satisfied.

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9. Find the optimum commodity purchases for a consumer whose utility

function is 𝑈 = 𝑓(𝑥 , 𝑥 ) = 𝑥 𝑥 . Prices of 𝑥 and 𝑥 are Rs. 1 and Rs. 5
respectively and Income (𝑌) = 𝑅𝑠. 10. Use the second order conditions to
verify that the solution is a constrained maximum.
[𝑨𝒏𝒔. : 𝒙𝟏 =5, 𝒙𝟐 =1]

10. If 𝑢 = 𝑥 𝑥 + 2𝑥 + 3𝑥 is the utility functions of a consumer of two

goods, I and II, and 𝑀 = 𝑥 𝑝 + 𝑥 𝑝 be his budget constraint,
(i) Derive the demand functions of the two goods by using the
method of Lagrange Multiplier.
𝑴 𝟐𝒑𝟏 𝟑 𝑴 𝟑𝒑𝟏
[𝐀𝐧𝐬. : 𝒙𝟏 = − , 𝒙𝟐 = − 𝟏]
𝟐𝒑𝟏 𝟐 𝟐𝒑𝟐
(ii) Examine the second order condition for maxima of utility.
(iii) Use these demand functions to find 𝑝 +𝑝 +𝑀 and

𝑝 +𝑝 +𝑀 and interpret the results.

11. A monopolist has the following demand functions for each of his
products X and Y: 𝑥 = 72 − 0.5𝑝 , 𝑦 = 120 − 𝑝 . The combined cost 𝐶 =
𝑥 + 𝑥𝑦 + 𝑦 + 35 and-the maximum joint product is 40 units i.e. 𝑥 +
𝑦 = 40. Find
(i) The profit maximizing level of Output, [Ans.:x=18, y=22]
(ii) The price of each product, and [𝐀𝐧𝐬. : 𝒑𝒙 = 𝟏𝟎𝟖, 𝒑𝒚 = 𝟗𝟖]
(iii) The total profit. [𝑨𝒏𝒔. : 𝝅 = 𝟐𝟖𝟔𝟏]

12. The production function of a firm is 𝑋 = 𝐾 / 𝐿 /

and prices of capital
and labour are fixed at Rs. r and 𝜔 respectively,

(i) Find the cost minimizing combination of capital and labour.

(ii) Derive the demand functions of capital and labour.
𝒘 𝒓
[Ans:K= 𝑿, 𝑳 = 𝑿]
𝒓 𝒘

(iii) Derive the cost function of the firm. [Ans.: C=2√𝒘𝒓.X]

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13. Let the utility function be given by 𝑈 = 𝑥𝑦. The budget constraint is
given as 100 − 𝑥𝑝 − 𝑦𝑝 = 0.

𝟓𝟎 𝟓𝟎
(i) Find the demand function for x and y. [Ans.: x= ,𝒚 = ]
𝒑𝒙 𝒑𝒚
(ii) Show that these functions are homogeneous of degree zero in
absolute prices and incomes.
(iii) Replace 𝑈 = 𝑥𝑦 with 𝑊 = (𝑥𝑦) and answer parts (i) and (ii)
again.

14. Production function of a producer is given by 𝑋 = 12𝐿 / 𝐾 / , where X

is output, L is labour and K is capital. It is also known that price of labour is
Rs. 3 per unit and the price of capital is Re 1 per unit. Find the
combinations of inputs that can maximize output for a given cost of Rs 80.
[Ans.:K=L=20]
𝟏
Also find the cost function of the producer. [Ans.: C= 𝑿]
𝟑

15. A firm produces output Y from inputs 𝑥 and 𝑥 according to the

production function𝑌 = 𝐴𝑥 𝑥 . Derive an expression for the minimum
cost of producing output Y in terms of input prices (𝜔 𝑎𝑛𝑑 𝜔 ) and Y.
𝟏 𝜷 𝜶
𝒀 𝜶 𝜷 𝜶𝒘𝟐 𝜶 𝜷 𝜷𝒘𝟏 𝜶 𝜷
[Ans.: 𝒘𝟏 + 𝒘𝟐
𝑨 𝜷𝒘𝟏 𝜶𝒘𝟐

If the production function is linearly homogenous, show that the cost

𝒀 𝜶𝒘𝟐 𝜷 𝜷𝒘𝟏 𝜶
function is linear in output. [Ans.: 𝒘𝟏 + 𝒘𝟐
𝑨 𝜷𝒘𝟏 𝜶𝒘𝟐

16. A producer has the following production function 𝑋 = 𝐿 / + 𝐾 / ,

where X, L and K denote the quantities of output, labor and capital
respectively.
(a) It is given that price of labor is Rs. 4 per unit and price of capital is
Rs. 5 per unit.
(i) Determine the values of L and K for producing 45 units of
output at minimum cost. [Ans.: L=625, K=400]
(ii) Find this minimum cost. [Ans.: 4500]
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Rahul Sir (Srcc Graduate , DSE Alumni)

(iii) Verify the second order conditions.

(b) Assuming that the price of labor is 𝑝 per unit and price of capital
is 𝑝 per unit, find:
(i) The demand functions for labor and capital.
𝑿𝟐 𝒑𝟐𝒌 𝑿𝟐 𝒑𝟐𝒍
[Ans:L= (𝒑 )𝟐
, 𝑲 = (𝒑 ]
𝒌 𝒑𝒍 𝒌 𝒑𝒍 )𝟐
𝒑𝒌 𝒑𝒍
(ii) The cost function of the producer. [Ans.:C=𝑿𝟐 ]
𝒑𝒌 𝒑𝒍
𝟐
(iii) The cost function when 𝑝 = 4 and 𝑝 = 5. [Ans.:C=2.2𝑿 ]

17. Assume that the production function of a producer is given by 𝑋 =

10𝐿 / 𝐾 / , where X, L and K denote output labor and capital respectively.
If labor costs Rs. 5 per unit and capital Rs. 4 per unit, find least-cost capital
Labor ratio. [Ans.: 25:16]

18. A producer has the production function 𝑋 = 10√𝐾𝐿, where X, K and L

denote the quantities of output, capital and labor respectively. If the price
of labor is Rs. 10 per unit and price of capital is Rs. 40 per unit:

(i) Determine the values of K and L for producing 200 units of output
at minimum cost, [Ans.:K=10, L=40]

(ii) Calculate the cost. [Ans.:800]

19. The production function of a firm is 𝑦 = 𝐴𝑥 𝑥 where 𝑥 and 𝑥 are

two inputs with prices 𝑤 and 𝑤 respectively,
(i) Find the cost minimizing combination of the two inputs.
𝒃𝒘𝟏
[𝐀𝐧𝐬. : 𝒙𝟐 = 𝒙𝟏 ]
𝒂𝒘𝟐
(ii) Derive the demand functions of the two inputs
𝟏 𝒃 𝟏 𝒂
𝒚 𝒂 𝒃 𝒂𝒘𝟏 𝒂 𝒃 𝒚 𝒂 𝒃 𝒃𝒘𝟏 𝒂 𝒃
[𝑨𝒏𝒔. : 𝒙𝟏 = × , 𝒙𝟐 = × ]
𝑨 𝒃𝒘𝟐 𝑨 𝒂𝒘𝟐

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Rahul Sir (Srcc Graduate , DSE Alumni)

(iii) Derive an expression for the minimum cost of producing y.

𝟏 𝒃 𝒂
𝒚 𝒂 𝒃 𝒂𝒘𝟐 𝒂 𝒃 𝒃𝒘𝟏 𝒂 𝒃
[Ans.:C= 𝒘𝟏 + 𝒘𝟐 ]
𝑨 𝒃𝒘𝟏 𝒂𝒘𝟐

20. A Consumer spends an amount M to buy x units of one good at a price of

6 per unit and y units of other good at a price of 10 per unit, m is positive.
The consumer utility function is 𝑈 (𝑥, 𝑦) = 𝑥𝑦 + 𝑦 + 2𝑥 + 2𝑦
Find the optimal quantities of x and y as function of m. what are the
solution for 𝑥 ∗ , 𝑦 ∗ if 𝑚 ≤ 8. (Eco(H) 2010)

𝟐𝟎 − 𝒎 ∗ 𝒎 − 𝟖
[𝐴𝑛𝑠. : 𝒙∗ = ,𝒚 = ; 𝑖𝑓 𝒎 ≤ 𝟖 𝒕𝒉𝒆𝒏 𝒙∗ ≥ 𝟏 𝒂𝒏𝒅 𝒚∗ ≤ 𝟎 ]
12 8

21. Suppose a monopolist is practicing price discrimination in the sale of a

product. Let the demand curves be 𝑝 = 100 − 𝑥 and 𝑝 = 80 − 𝑥 and
the cost function is 𝐶 = 6𝑥 (where𝑥 = 𝑥 + 𝑥 ).
(i) How much should be sold in each market to maximize profit?
What are the prices charged? [Ans.:(𝒙𝟏 = 𝟒𝟕, 𝒙𝟐 = 𝟑𝟕), (𝒑𝟏 =
𝟓𝟑, 𝒑𝟐 = 𝟒𝟑)]
(ii) How much profit is lost if price discrimination is made illegal?
[𝐀𝐧𝐬. : ∆𝝅 = 𝟓𝟎]
(iii) If the monopolist is allowed to maintain a price difference of Rs. 4
only, find 𝑥 and 𝑥 . [Ans.:(𝟓𝟎, 𝟓𝟎) (34,46)]

22. Maximize the utility function 𝑈 = 𝑓 (𝑥, 𝑦) = 𝑙𝑛𝑥 + 𝑦; subject to

constraint
𝑥𝑝 + 𝑦𝑝 = 𝑚. Check the 2nd order condition. (Eco(H) 2014)
𝒑𝒚 𝒎 − 𝒑𝒚
[𝑨𝒏𝒔. : 𝒙 = ;𝒚 = ]
𝒑𝒙 𝒑𝒚

23. Maximize 𝑓 (𝑥, 𝑦) = 100 𝑙𝑛𝑥 + 50 𝑙𝑛𝑦, whenre 𝑥 > 0, 𝑦 > 0 subject to
the constraint
𝟐𝟎 𝟏𝟎
3x + y = 10. [𝑨𝒏𝒔. : : 𝒙 = ,𝒚 = ] (Eco(H) 2011, 2015)
𝟗 𝟑

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24. A consumer Utility function for two goods is: 𝑈(𝑥, 𝑦) = 𝑥 / 𝑦 /

Write down the necessary condition for the solution of the constraint
optimization. Problem for general values of 𝑝 , 𝑝 , 𝑚. Find the optimal
values of x and y and the corresponding values of 𝜆. Check the 2nd order
condition and what are the consumer demand functions for x and y?
(Eco(H) 2012)
𝒎 𝒎 𝟏
[𝑨𝒏𝒔. : 𝒙 = ,𝒚 = ,𝝀 = 𝟏 𝟏 ]
𝟐𝒑𝒙 𝟐𝒑𝒚
𝟐𝒑𝒚 𝟐 𝒑𝒙 𝟐

25. A consumer faces the following utility maximization problem.

Max. U(x, y) = 100 − 𝑒 − 𝑒 subject to px + qy = m, where 𝑥 >
0, 𝑦 > 0. Here, p and q are per unit prices of goods x and y respectively,
and m is the consumer’s money income.

a) Find the necessary conditions for the solution of the problem and
solve them for the two demand functions x = f(p, q, m) and y = g(p,
q, m) by using the Lagrangean Method.
b) What happens to the optimal values of x and y if per unit prices of
both goods and consumer’s money income are doubled. (Eco(H)
2017)

Interpreation of Lagrange Multiplier and Enevlop Theorem.

1. A consumer's utility function for two goods is:

𝑈(𝑥, 𝑦) = 𝑥 / 𝑦 / .Write down the necessary conditions for the
solution of the constrained optimization problem for general values
of 𝑝 , 𝑝 and M. Find the optimal values of x and y and the
corresponding value of 𝜆. Check the second order conditions. What

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Rahul Sir (Srcc Graduate , DSE Alumni)

are the consumer's demand functions for x and y? Find the indirect
∗
utility function 𝑈 ∗ ( 𝑝 , 𝑝 , 𝑀)and verify that 𝜆 = .
𝒎 𝒎 𝟏
(Eco(H) 2014) . 𝐀𝐧𝐬. : 𝒙 = ,𝒚 = ,𝝀 = 𝟏/𝟐 𝟏/𝟐
𝟐𝒑𝒙 𝟐𝒑𝒚 𝟐𝒑𝒚 𝒑𝒙

2. 𝑥 (𝑎, 𝑏) = 𝐴√𝑎𝑏 is a production function for good x using inputs a and b.

Use the Lagrangian method to find the amount of the factors required to
produce an output 𝑥̅ at minimum cost, when prices of the inputs are
𝑝 & 𝑝 . Check the 2nd order conditions and verify the envelope
𝒙 𝒑𝒃 𝒙 𝒑𝒂
theorem. (Eco(H) 2018) [Ans.:a= , b= ]
𝑨 𝒑𝒂 𝑨 𝒑𝒃

3. The consumer utility is a function of two goods x and y is given by:

𝑈 = 𝛼𝑙𝑛𝑥 + 𝛽𝑙𝑛𝑦 (𝑤ℎ𝑒𝑟𝑒 𝛼, 𝛽 𝑎𝑟𝑒 𝑝𝑜𝑠𝑖𝑡𝑖𝑣𝑒 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡𝑠)The consumer’s

budget constraint is given by 𝑝𝑥 + 𝑞𝑦 =
𝑚 (𝑤ℎ𝑒𝑟𝑒 𝑝 𝑎𝑛𝑑 𝑞 𝑎𝑟𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑝𝑟𝑖𝑐𝑒𝑠 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑥 & 𝑦 𝑟𝑒𝑠𝑝𝑒𝑐𝑡𝑖𝑣𝑒𝑙𝑦
and m is money income).

a) Using Lagrange method, find the optimal values of x and y as

𝒎𝜶 𝒎𝜷
functions of p, q and m. [𝐀𝐧𝐬. : 𝒙 = ,𝒚 = ]
𝒑(𝜶 𝜷) 𝒒(𝜶 𝜷)
b) Check the second order condition.
∗
c) Find the optimal values of 𝑈 ∗(𝑝, 𝑞 𝑎𝑛𝑑 𝑚). 𝐹𝑖𝑛𝑑 and give its
economic interpretation. (Eco(H) 2016)
𝝏𝑼∗
⎧ = 𝝀; 𝑼∗ 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒆𝒔 𝒃𝒚 𝝀 𝒖𝒏𝒊𝒕𝒔 𝒘𝒊𝒕𝒉 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒆𝒔 𝒊𝒏 𝒎 ⎫
⎪ 𝝏𝒎 ⎪
⎪ 𝝏𝑼∗ ⎪
∗
= −𝝀𝒙; 𝑼 𝒅𝒆𝒄𝒓𝒆𝒂𝒔𝒆𝒔 𝒃𝒚 𝝀𝒙 𝒖𝒏𝒊𝒕𝒔 𝒘𝒊𝒕𝒉 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒆 𝒊𝒏 𝒑
⎨ 𝝏𝒑 ⎬
∗
⎪
⎪ 𝝏𝑼 ⎪
= −𝝀𝒚; 𝑼∗𝒅𝒆𝒄𝒓𝒆𝒂𝒔𝒆𝒔 𝒃𝒚 𝝀𝒚 𝒖𝒏𝒊𝒕𝒔 𝒘𝒊𝒕𝒉 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒆 𝒊𝒏 𝒒⎪
⎩ 𝝏𝒒 ⎭

4. An individual purchases quantities 𝑋 and 𝑋 of two goods whose prices

are 𝑝 and 𝑝 respectively. His utility functions is:
𝑈 (𝑋 , 𝑋 ) = 𝑋 + 𝐼𝑛 𝑋
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Rahul Sir (Srcc Graduate , DSE Alumni)

Assuming his income is M, find the optimal quantities 𝑋 and 𝑋 . Also find
𝑴 𝒑𝟏 𝟏
the marginal utility of income. 𝐀𝐧𝐬.: 𝑿𝟏 = − 𝟏, 𝑿𝟐 = &𝜆=
𝒑𝟏 𝒑𝟐 𝒑𝟏

5. The production function of a firm is 𝑋 = 𝐾 / 𝐿 / and prices of capital

and labour are fixed at Rs. r and 𝜔 respectively
a) Find the cost minimising inputs of K and L , and also the minimum
cost C , as functions of r and 𝜔 and Q. Denotes the cost minimising
values by K* , L* , C*.

[Ans.: K* =𝟐𝟏/𝟑 𝒓 𝟏/𝟑 𝝎𝟏/𝟑 𝑸𝟒/𝟑 , 𝑳∗ = 𝟐 𝟐/𝟑

𝒓𝟐/𝟑 𝝎 𝟐/𝟑
𝑸𝟒/𝟑 , 𝑪∗ =
𝟑 . 𝟐 𝟐/𝟑 𝒓𝟐/𝟑 𝝎𝟏/𝟑 𝑸𝟒/𝟑 ]
𝝏𝑪∗ 𝝏𝑪∗ 𝝏𝑪∗ 𝝏𝑲∗ 𝝏𝑳∗
b) Verify that K* = , L* = ,𝜆= , =
𝝏𝒓 𝝏 𝝏𝑸 𝝏 𝝏𝒓
Where 𝜆 denotes the Lagrange Multiplier.

/ /
6. Consider the problem max 𝑍 = 10𝑥 𝑦 subjected to 2𝑥 + 4𝑦 = 𝑚

a) Write down the necessary conditions in this case, and solve then for
𝑥, 𝑦 and 𝜆 as function of 𝑚.
𝟏𝟎 𝟏/𝟔
[Ans.: x=3m/10, y= m/10, 𝝀 = 𝟐. 𝟓( ) ]
𝟐𝟕𝒎
𝝏𝒁∗
b) Verify =𝝀
𝝏𝒎

7. Consider the problem max 𝑓 (𝑥, 𝑦) = 𝑥 + 𝑦 subject to 𝑔(𝑥, 𝑦) = 𝑥 + 𝑦 =

1
a. Write down the Lagrangean function for the problem and solve
the necessary conditions in this case. Check whether it is the
optimal solution? [Ans.:x=.5, y=.75]
b. Replace the constraint by 𝑥 + 𝑦 = 1.1, and solve the problem in
this case. Find the corresponding change in the optimal value of
𝑓 (𝑥, 𝑦) = 𝑥 + 𝑦, and check to see if this change is approximately
equal to 𝜆. 0.1. [Ans.:x=.5, y=.85]

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Constraint Opimization with more than two variable

1. Consider the problem max 𝑥 𝑦 𝑧 subject to 𝑥 + 𝑦 + 𝑧 =12 . Write

down the Lagrange for this problem, and find the only point (𝑥, 𝑦, 𝑧) that
satisfies the necessary conditions. [Ans.:𝒙 = 𝟒 , 𝒚=6, 𝒛=2]

2. Consider the problem min 𝑥 + 𝑦 + 𝑧 subjected to 𝑥 + 𝑦 + 𝑧 = 1.

a) Write down the Langrangean for this problem, and find the only point
(𝑥, 𝑦, 𝑧) that satisfies the necessary conditions.[Ans.: 𝒙 = 𝒚 = 𝒛 = 𝟏/𝟑 ]
b) Give a geometric argument for the existence of a solution. Has the
corresponding maximization problem any solution?
[Ans.: Shortest distance from orgin to the plane , No Max problem]

3. Solve the problem min 𝑥 + 4𝑦 + 3𝑧 subjected to 𝑥 + 2𝑦 + 𝑧 = 𝑏.

(Suppose that 𝑏 > 0 and take it for granted that the problem has a
solution.)
[Ans.:𝒙 = −√𝒃/𝟔 , 𝒚 = −√𝒃/𝟑 , 𝒛 = −𝟑√𝒃/𝟐 ]

4. Solve the following problem using lagrange Method.

𝑥+𝑦+𝑧 = 1
min 𝑥 − 2𝑥 + 2𝑦 + 𝑧 + 𝑧 subjected to
2𝑥 − 𝑦 − 𝑧 = 5

[Ans.: 𝒙 = 𝟐 , 𝒚 = −𝟏/𝟔 , 𝒛 = −𝟓/𝟔 ]

5. By using Lagrange’s method, find 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 solutions to the problem
𝑥 +𝑦 +𝑧 =1
max(min) 𝑥 + 𝑦 + 𝑧 subjected to
𝑥−𝑦−𝑧=1
[Ans.: Max at (-1/3 ,-2/3 ,-2/3) , Min at (1 ,0 ,0) ]
6. Solve the problem

𝑥 + 2𝑦 + 𝑧 = 1
max(min)𝑥 + 𝑦 subject to
𝑥+𝑦+𝑧 =1

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[Ans.: Max at (4/5 ,2/5 ,-1/5) , Min at (0,0,1)) ]

7. By Maximising the utility function with budget line consider to be

constraint , show that ratio between the marginal utility of commodity
and its price per unit must be same for all commodities.
Max U(𝑥 , 𝑥 ,……., 𝑥 ) subject to constraint 𝑝 𝑥 +………+𝑝 𝑥 =m

8. An Individual purchases quantitates a ,b ,c of three different commodities

whose prices are p ,q ,and r respectively. The consumer income is m
,where m> 2p ,and the utility function is given as U( a,b,c) = a + In(bc).
Find the consumer demand for each good a function of prices p ,q ,r and
income m. show that expenditure on each of the second and the third
good is always equal to p.
[Ans.: a= m/p -2 , b=p/q ,c= p/r ]
9. Using the Q7 Concept find the Demand function when
a. U(𝑥 , 𝑥 ,……., 𝑥 ) = A𝑥 ……….𝑥 (A>0 , 𝑎 >0 ,……, 𝑎 > 0 )

𝒂𝒊 𝐦
[Ans.: 𝒙𝒊 = ]
𝒑𝒊 ( 𝒂𝟏 ⋯ 𝒂𝒏 )
b. U(𝑥 , 𝑥 ,……., 𝑥 ) = 𝑥 +………..+𝑥 ( 0<a<1)
𝐦𝒑𝒊 𝟏/(𝟏 𝒂)
[Ans.: 𝒙𝒊 =∑𝒏 𝟏/(𝟏 𝒂)
]
𝒋 𝟏 𝒑𝒋

10.
a. Solve the following problem using lagrange Method.
𝑥 + 2𝑦 + 𝑧 = 1
Max(min) 𝑥 + 𝑦 + 𝑧 subjected to
2𝑥 − 𝑦 − 3𝑧 = 4

[Ans.:(16/15,1/3,-11/15), 𝛌𝟏 =52/75, 𝛌𝟏 =54/75]

b. Suppose the first constraint changes to 𝑥 + 2𝑦 + 𝑧 = 0.9 and second

constraint to 2𝑥 − 𝑦 − 3𝑧 = 4.1. Estimate the corresponding change the
value of the function using the interpretation of Lagrange multiplier
concept . Find the new value of the value function. [Ans.:0.2/75 , 1.789]

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11. Consider the problem

max 𝑓(𝑥, 𝑦, 𝑧) = 4𝑧 − 𝑥 − 𝑦 − 𝑧

subject to 𝑔(𝑥, 𝑦, 𝑧) = 𝑧 − 𝑥𝑦 = 0

a) Use Langrage’s method to find necessary conditions for the solution of

the problem, and find all triples (𝑥, 𝑦, 𝑧) that satisfy these conditions.
[Ans.: (0,0,0) with 𝛌=4 ,(1,1,1) (-1,-1,1) with 𝛌=2 ]
b) The point (1,1,1) is a maximum point in [∗]. Find an approximate change
in objective function value from if 𝑧 − 𝑥𝑦 = 0 to 𝑧 − 𝑥𝑦 = 0.1.
[Ans.: Change is approximately equal to 0.2 ]

12. Consider the problem

1 1 1 1
𝑥 + 𝑥 + 𝑥 + 𝑥 =3 [1]
3 3 8 8
max 𝑥 + 𝑥 + 𝑥 + 𝑥 subject to
𝑥 𝑥 𝑥 𝑥 = 144 [2]
𝑥 … … . . 𝑥 are all ≥ 0 [3]

a) Write down the necessary conditions for all the solution of this problem.
b) Show that the necessary conditions imply 𝑥 = 𝑥 and 𝑥 = 𝑥 . Find the
solution. (Assume that the problem has a solution). [Ans.:
3/2 ,3/2 ,8,8 ]
c) Suppose that constraint [2] is changed to 𝑥 𝑥 𝑥 𝑥 = 145. Can you give
(approximately) the change in the optimal value of 𝑥 + 𝑥 + 𝑥 + 𝑥 ,
without redoing the whole problem?
[Ans.: Change is approximately equal to -5/144]

Constraint Optimization under Non Linear Programming

1. Solve the following problem using lagrange Method

Maximize 𝑓 (𝑥, 𝑦)= 𝑥 + 𝑦 + 𝑦 − 1 subject to constraint 𝑔(𝑥, 𝑦)= 𝑥 +
𝑦 ≤1.

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[Ans.:Max at x=0 ,y=1 , Min at x=0 ,y=-5/4]

2. Solve the following problem using lagrange Method.

𝑧 ≤ 𝑥𝑦
max 4𝑧 − 𝑥 − 𝑦 − 𝑧 subjected to
𝑥 +𝑦 +𝑧 ≤3

[Ans.:Max at (1,1,1) (-1,-1,1) , Min at (0,0,0)]

3. Consider the problem

max 𝑥 + 2𝑦 − 𝑥 subjected to 𝑥 + 𝑦 ≤ 1

a. Write down the Langrangean function and the firs-order conditions .

b. What is the complementary slackness condition?
c. Find all pair (𝑥, 𝑦) that satisfy all the necessary condition . Find the
solution to the problem
[Ans.:Max 9/4 at (-1/2, √𝟑/2) (-1/2, -√𝟑/2]

4. Solve the following problems, assuming they have solutions.

a. max 𝑥 − 𝑦 subject to 𝑥 + 𝑒 ≤ 𝑦, 𝑥 ≥ 0
[Ans.: max at (In2 , In2+1/2) ]

b. max 𝑥 + 2𝑦 subject to 𝑥 + 𝑦 ≤ 5, 𝑦 ≥ 0

[Ans.: max at (2,1) and (-2,1) ]

5. Solve the following problems, assuming they have solutions:

a. max 𝑦 − 𝑥 subject to 𝑦 ≥ 0, 𝑦 − 𝑥 ≥ −2, 𝑦 ≤ 𝑥.

𝟐/𝟑 𝟏/𝟑
[Ans.: max at (𝟒 ,𝟒 )]

b. max 𝑥𝑒 − 2𝑒𝑦 subject to 𝑥 ≥ 0, 0 ≤ 𝑦 ≤ 1 + 𝑥/2.

[Ans.: max at (𝟏, 𝟎)]
6. Consider the problem

max 𝑥 + 𝑎𝑦 subject to 𝑥 + 𝑦 ≤ 1, , 𝑥 + 𝑦 ≥ 0 (𝑎 is a contant)

a. Write down the necessary conditions.

b. Find the solution for all values of the constant 𝑎.
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𝟏 𝒂
[Ans.: Solution at ( , ) if a≥ -1 , (1/√𝟐 ,- 1/√𝟐) if a<-1]
𝒂𝟐 𝟏 𝒂𝟐 𝟏
7. Consider the problem

𝑥 +𝑥 +𝑥 ≤1
max In𝑥 + (𝑥 + 𝑥 ) + subject to 𝑥 ≥1
𝑥 +𝑥 ≤2

a. Write down the necessary conditions

b. Find all points satisfying the necessary conditions (Hint: there are
infinitely many) what is the solution to the problem.
[Ans.: Infinite many solution ]

8. Max In(𝑥 +2y) − 𝑥 −y subject to 2≤ y , 𝑥 ≥1 , 𝑦 ≥1

[ Ans.: (2 ,1) , (2,-1)]

9. Solve the problem max 1 − 𝑥 − 𝑦 subject to 𝑥 ≥ 0, 𝑦 ≥ 0 by (a) a

direct argument and (b) using Kuhn-Tucker conditions. [Ans.:
optimal solution at x=0 ,y=0]
𝑥 ≤5
10. max 9𝑥 + 8𝑦 − 6(𝑥 + 𝑦) subject to 𝑦 ≤3 𝑥≥
−𝑥 + 2𝑦 ≤ 2

0, 𝑦 ≥ 0

[Ans.: optimal solution at x=3/4 ,y=0]

Miscellaneous Questions

1. Solve the following problems by the Lagrangean method. Prove, in each case,
that you have found the optimal solution.
a. max 𝑥 + 3𝑥𝑦 + 𝑦 subjected to 𝑥 + 𝑦 = 100 [Ans.: x= 50 ,y =50]
b. max 12𝑥 𝑦 subjected to 3𝑥 + 4𝑦 = 12 [Ans.: x= 8/3 ,y =1]

2. A point moves on the curve 𝑥 + 𝑦 = 100 . At what point is its distance from
the point (𝑥, 𝑦) = (10,8) minimum? If the constant 100 in the equation of

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the curve were to be increased by 1 unit, what is the instantaneous effect on

the minimum distance?
𝟓𝟎 𝟒𝟎 𝟓𝟎 𝟏𝟎√𝟒𝟏
[Eco(h) 2019] [Ans.:( , ), instant effect ]
√𝟒𝟏 √𝟒𝟏 𝟓𝟎
3. Find the closest point to the origin on the curve given by the equation 𝑥 +
𝑥𝑦 = 1, 𝑥 > 0. Also calculate the minimum distance. What is the rate of
change in the distance as the constant 1 in the equation of the curve
increases marginally.
𝟏 𝟐
[Eco(h) 2018] [ Ans.: ( , ) , rate of change=1]
√𝟑 √𝟑
4. An individual has a utility function 𝑈 = (𝑥 𝑥 ) based on the purchase of
two commodities 𝑥 > 0, 𝑥 > 0. The pices of the two goods are Rs. 2/unit
and Rs. 4/unit and total income is Rs. 400. If he tries to get the maximum
utility within the budget, then find out the quantities that he should
purchase to maximize his utility by using the Langrange method. [Eco(h)
2017] [ Ans.: 𝒙𝟏 =100 , 𝒙𝟐 =50]

5. Let 𝑝 be a fixed real number and consider the problem

min 𝑥 + 2𝑦 subject to 𝑝(𝑥 + 𝑦 ) + 𝑥 𝑦 − 4 = 0 [∗]
a) For 𝑝 = 0, find the solution to the problem if we assume 𝑥 ≥ 0 and 𝑦 ≥ 0.
[Ans.: x=2 ,y=1]

b) For 𝑝 arbitrary, prove that in order for a point (𝑥, 𝑦) with 𝑥 > 0 and 𝑦 >
0 to solve problem [∗], then (𝑥, 𝑦) must satisfy the equations.
2𝑝𝑥 − 𝑝𝑦 + 2𝑥𝑦 − 𝑥 𝑦 = 0, 𝑝𝑥 + 𝑝𝑦 + 𝑥 𝑦 = 4. [∗∗]

c) Assume that [∗∗] defines 𝑥 and 𝑦 as continuously differentiable functions

of 𝑝 in a certain interval around 𝑝 = 0. By implicit differentiation of [∗∗],
find the derivatives 𝑥′(𝑝) and 𝑦′(𝑝) at 𝑝 = 0. [Ans.: 1/8 -11/16]

d) Let ℎ (𝑝) = 𝑥 (𝑝) + 2𝑦(𝑝). Find ℎ′(0). [Ans.: -5/4]

6. An oil producer starts production on an oil field at time 𝑡 = 0. Suppose that

all the oil will be extracted in a time span [0, 𝑦] and that the production per
unit of time at time 𝑡𝜖[0, 𝑦] is 𝑥𝑡 (𝑦 − 𝑡). Assume that the producer can
choose the size of 𝑥 as well that of 𝑦. The total amount of oil extracted in the
given time span is thus given by the following function of 𝑥 and 𝑦:

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Rahul Sir (Srcc Graduate , DSE Alumni)

𝑔(𝑥, 𝑦) = 𝑥𝑡(𝑦 − 𝑡)𝑑𝑡

Assume further that the sales price 𝑝 per unit of oil is an increasing function of
time, 𝑝 = 1 + 𝑡, and that the cost per unit of oil extracted is equal to 𝑎𝑦 , where
𝛼 is a positive constant. The net income per unit of time is then
(1 + 𝑡 − 𝛼𝑦 )𝑥𝑡(𝑦 − 𝑡), so that the total net income in the time span [0, 𝑦] is a
function of 𝑥 and 𝑦 given by

𝑓 (𝑥, 𝑦) = (1 + 𝑡 − 𝛼 )𝑥𝑡(𝑦 − 𝑡)𝑑𝑡

If the total amount of extractable oil in the field is 𝑀, the producer can only
choose values of 𝑥 and 𝑦 such that 𝑔(𝑥, 𝑦) = 𝑀. Its problem is thus

max 𝑓 (𝑥, 𝑦) subjected to 𝑔(𝑥, 𝑦) = 𝑀 [∗]

a. Find the explicit expressions for 𝑓(𝑥, 𝑦) and 𝑔(𝑥, 𝑦) by calculating the given
integrals, and then solve problems [∗]. [Ans.: x=𝟑𝟖𝟒𝜶𝟑 ,y=1/4𝜶 ]

b. As 𝛼 → 0, the value of 𝑦 that maximizes net income will tend to ∞. Why?

∗
c. Show that = 𝜆.

7. Consider the problem

max 𝑥 𝑥 ( 𝑥 + 𝑏 − 𝑎) subject to 𝑝 𝑥 + 𝑝 𝑥 = 𝑚

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With 𝑎 and 𝑏 as constants.

a. Solve the problem and thereby find the two demand function 𝑥 =
𝒂𝒎 𝒎(𝒎 𝒃𝒑𝟏 𝒂𝒑𝟏 )
𝐷 (𝑝 , 𝑝 , 𝑚) and 𝑥 = 𝐷 (𝑝 , 𝑝 , 𝑚) [Ans.:𝒙𝟏 = , 𝒙𝟐 = ]
𝒎 𝒃𝒑𝟏 𝒑𝟐 (𝒎 𝒃𝒑𝟏 )
b. Verify the 𝐷 and 𝐷 are homogeneous of degree 0.

8. Each week an individual consumes quantities 𝑥 and 𝑦 of two goods, and

works for ℓ hours. These quantities are chosen to maximize the utility
function

𝑈(𝑥, 𝑦, ℓ) = 𝛼 In 𝑥 + 𝛽 In 𝑦 + (1 − 𝛼 − 𝛽 )In (𝐿 − ℓ)

Which is defined for 0 ≤ ℓ < 𝐿 and for 𝑥, 𝑦 > 0. Here 𝛼 and 𝛽 are positive
parameters satisfying 𝛼 + 𝛽 < 1. The individual faces the budget constraint
𝑝𝑥 + 𝑞𝑦 = 𝑤ℓ + 𝑚, where 𝑚(≥ 0) denotes unearned income.

a) Assuming that
𝛼+𝛽
𝑚≤ 𝜔𝐿
1−𝛼−𝛽
Find the individual’s 𝑥, 𝑦, and labor supply ℓ as functions of 𝑝, 𝑞, 𝑟 and 𝑚.
𝜶(𝒘𝑳 𝒎) 𝜷(𝒘𝑳 𝒎)
[Ans.: 𝒙= , 𝒚= and 𝓵=( 𝜶 + 𝜷) 𝑳-m(1- 𝜶 − 𝜷)/w.]
𝒑 𝒒

b) What happens if the inequality [∗] is violated?

𝜶𝒎 𝜷𝒎
[Ans.: 𝒙= , 𝒚= , 𝓵 = 𝟎]
(𝜶 𝜷)𝒑 (𝜶 𝜷)𝒑

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chapter-3

linear programming
PROBLEM FORMULATION

1. A firm makes two types of furniture – chairs and tables. The contribution
for each product as calculated by the accounting department is Rs. 20 per
chair and Rs. 30 per table. Both the products are processed on three
machines M1, M2 & M3. The times required (in hours) by each product and
total time available per week on each machine are as follows:
Machine Chair Table Available hours
per week
M1 3 3 36
M2 5 2 50
M3 2 6 60
Formulate as a linear programming model to maximize the total contribution.

[Ans.: Max. Z = 20x1 + 30x2, Sub. to: x1 + x2  12, 5x1 + 2x2  50, x1 + 3x2  30,
x1 x2  0]

2. The vitamins V and W are found in two different foods, F 1 and F2. The
amount of vitamin in each of the two foods, respective prices per unit of
each food, and the daily vitamin requirements are given in the following
table. The data indicate that one unit of F1 contains 2 units of vitamin V and
3 units of vitamin W. Similarly one unit of F2 contains 4 units of vitamin V
and 2 units vitamin W. Daily requirements of vitamin V is at least 40 units
and vitamin W of at least 50 units.

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The problem is to determine optimal quantities of foods F1 and F2 to be

bought so that the daily vitamin requirements are met and, simultaneously
the cost of buying the goods is minimized.
Vitamin F1 F2 Daily
Requirements
V 2 4 40
W 3 2 50
Cost / Unit of 3 2.5
food
[Ans.: Min. Z = 3x1 + 2.5x2; 2x1 + 4x2  40, 3 x1 x1, x2 0]
3. A manufacturer can produce two different products, A and B during a given
period. Each of these products requires four manufacturing operations:
Grinding, turning, assembly and testing. The manufacturing requirements
in hours per unit of the product are given below:
Operation Product Available Capacities
A B (In hours)
Grinding 1 2 30
Turning 3 1 60
Assembly 6 3 200
Testing 5 4 200
The contribution to profit is Rs. 2 for each unit of A and Rs. 3 for each unit of
B. the firm can sell all that it produces at the prevailing market price.
Formulate the problem as a linear programming model to maximize the
profit.
[Ans.: Max. Z = 2x1 + 3x2, Sub. to: x1 + 2x2  30, 3x1 + x2  60, 6x1 + 3x2 
200, 5x1 + 4x2  200, x1, x2  0]
4. A small jewellery manufacturing company employs a person who is a highly
skilled gem cutter, and it wishes to use this person at least 6 hours per day

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for this purpose. On the other hand, the polishing facilities can be used in
any amount up to 8 hours per day. The company specializes in three kinds
of semi-precious stones P, Q and R. Relevant cutting, polishing and cost
requirements are listed in the following table:
P Q R
Cutting 2 hours 1 hour 1 hour
Polishing 1 hour 1 hour 2 hours
Cost per stone Rs. 30 Rs. 30 Rs. 10
Formulate the above problem as an LP model to determine the no. of
gemstones of each type to be processed each day so as to minimize the cost
of finished stones? Do not solve it.
[Ans.: Min. Z = 30x1 + 30x2 + 10x3, Sub to: 2x1 + x2 + x3  6, x1 + x2 + 2x3 
8, x1, x2, x3  0]
5. A company has three operational departments (weaving, processing and
packing) with capacity to produce three different types of clothes namely
suitings, shirtings and woolens yielding the profit Rs. 2, Rs. 4 and Rs. 3 per
meter respectively. One meter suiting requires 3 minutes in weaving, 2
minutes in processing and 1 minute in packing. Similarly one meter of
shirting requires 4 minutes in weaving, 1 minute in processing and 3
minutes in packing while one meter woolen requires 3 minutes in each
department. In a week, total run time of each department is 60, 40 and 80
hours for weaving, processing and packing departments respectively.
Formulate the linear programming problem to find the product mix to
maximize the profit.
[Ans.: Max. Z = 2x1 + 4x2 + 3x3; Sub to: 3x1 + 4x2 + 3x3 <3600; 2x1 + x2 + 3x3 
2400; x1 + 3x2 + 3x2  4800; x1, x2, x3  0]

50, x2  25, x3  30; x2 + x3  15, x2, x3  0]

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6. A manufacturing company produces two types of products, the SUPER and

the REGULAR. Resource requirements for the productions are given below:
Product Profit/Contribution Assembly Plant Time Inspection
(Rs.) Time (Hrs.) (Hrs.) Time (Hrs.)
REGULAR 50 1.2 0.8 0.2
SUPER 75 1.6 0.9 0.2
There are 1600 hours of assembly time, 700 hours of plant time and 300 hours
of inspection time available per week. Regular customers will demand at least
150 units of the REGULAR type and 90 units of the SUPER type. Formulate the
given problem as a linear programming model.

[Ans.: Max. Z = 50x1 + 75x2, Sub to: 1.2x1 + 1.6x2  1600, 0.8x1 +0.9x2  700,
0.2x1 +0.2x2  300, x1  150, x2  90]

7. A 24 hour supermarket has the following minimal requirements for

cashiers:
Period : 1 2 3 4 5 6
Time of day : 3-7 7-11 11-15 15-19 19-23 23-3
(24 hour
clock)
Minimum no. : 7 20 14 20 10 5
required
Period 1 follows immediately after period 6. A cashier works eight consecutive
hours, starting at the beginning of one of the six periods. To determine a daily
employee work sheet which satisfies the requirements with the least number
of personnel, formulate the problem as a linear programming problem.

[Ans.: Min. Z = x1 + x2 + x3 + x4 + x5 + x6, Sub to: x1 + x2  20, x2 + x3  14, x3 +

x4  20, x4 + x5  10, x5 + x6  5, x6 + x1  7, x1  7, xi  0, (i = 1, 2, …….., 6]

8. A city hospital has the following minimum requirements for nurses:

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Clock Time (24 hours per day) Minimum number of nurses

required
6 A.M. – 10 A.M. 2
10 A.M. – 2 P.M. 7
2 P.M. – 6 P.M. 15
6 P.M. – 10 P.M. 8
10 P.M. – 2 A.M. 20
2 A.M. – 6 A.M. 6
Nurses report to the hospital at the beginning of each period and work for 8
consecutive hours. The hospital wants to determine the minimum number of
nurses to be employed so that there will be sufficient number of nurses
available for each period. Formulate this as a Linear Programming Problem by
setting up appropriate constant, and objective function. Do not solve.

[Ans.: Min. Z = x1 + x2 + x3 + x4 + x5 + x6, Sub to: x1 + x2  7, x2 + x3  15, x3 + x4

 8, x4 + x5  20, x5 + x6  6, x6 + x1  2, xi (i = 1, 2, ….., 6)  0]

9. Shyam, an Agriculturist, has a farm with 125 acres. He produces radish, peas
and potato. Whatever he raises, is fully sold in the market? He gets Rs. 5 for
radish per kg.; Rs. 4 for peas per kg and Rs. 5 for potato per kg. The average
yield is 1500 kg of radish per acre, 1800 kg of peas per acre and 1200 kg of
potato per acre. To produce each 100 kg of radish and peas and to produce
each 80 kg of potato a sum of Rs. 12.50 has to be used for manure. Labour
required for each acre to raise the crop is 6 man-days for radish and potato
each and 5 days for peas. A total of 500 man-days of labour at a rate of Rs.
40 per man-day are available. Formulate this as a linear programming
model to maximize the Agriculturist’s total profit.
[Ans.: Max. Z = 7072.5x1 + 6775x2 + 5572.5x3; Sub to: x1 + x2 + x3  125; 6x1 +
5x2 + 6x3  500; x1, x2, x3  0]

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10. A firm buys castings of P and Q type of parts and sells them as finished
product after machining, boring and polishing. The purchasing cost for
castings are Rs. 3 and Rs. 4 each for parts P and Q and selling costs are Rs. 8
and Rs. 10 respectively. The per hour capacity of machines used for
machining, boring and polishing for two products is given below:
Capacity (per hour) Parts
P Q
Machining 30 50
Boring 30 45
Polishing 45 30
The running costs for machining boring and polishing are Rs. 30, Rs. 22.5 and
Rs. 22.5 per hour respectively. Formulate the linear programming problem to
find out the product mix to maximize the profit.

[Ans.: Max. Z = 2.75x1 + 4.15x2; Sub to: 5x1 + 3x2  150; 3x1 + 2x2  90; 2x1 +
3x2  90; x1, x2  0]

Graphical Method

Note- In each question of garphical method of LPP please verify your answer
using dotted line method of level curve of objective function.

1. Use the graphical method to solve the following LP problems:

3𝑥 + 2𝑥 ≤ 6
a) max 3𝑥 + 4𝑥 s.t 𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 + 4𝑥 ≤ 4
[Ans.:(𝒙𝟏 , 𝒙𝟐 )=(8/5,3/5) , Max=36/5]
𝑢 + 3𝑢 ≥ 11
b) min10𝑢 +27𝑢 s.t 𝑢 ≥ 0, 𝑥 ≥ 0
2𝑢 + 5𝑢 ≥ 20
[Ans.: (𝒙𝟏 , 𝒙𝟐 )=(5,2) , Min=104]

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−2𝑥 + 3𝑥 ≤ 6
c) max 2𝑥 + 5𝑥 s.t 7𝑥 − 2𝑥 ≤ 14 𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 +𝑥 ≤5
[Ans.:(𝒙𝟏 , 𝒙𝟐 )=(9/5,16/5), Max=98/5]
𝑥 + 2𝑥 ≤ 8
d) max 8𝑥 + 9𝑥 s.t 2𝑥 + 3𝑥 ≤ 13 𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 +𝑥 ≤6
[Ans.: (𝒙𝟏 , 𝒙𝟐 )=(5,1) , Max=49]

e) max −2𝑥 + 𝑥 s.t. 0 ≤ 𝑥 − 3𝑥 ≤ 3, 𝑥 ≥ 2, 𝑥 ≥ 0, 𝑥 ≥ 0

[Ans.: (𝒙𝟏 , 𝒙𝟐 )=(2, 2/3) , Max=-10/3]

2. (a) Is there is a solution to the following problem?

−𝑥 + 𝑥 ≤ −1
max 𝑥 + 𝑥 s.t. 𝑥 ≥ 0, 𝑥 ≥ 0
−𝑥 + 3𝑥 ≤ 3

[Ans.: No maxima Exist]

is there a solution if the criterion function is 𝑧 = −𝑥 − 𝑥 ?

[Ans.: Maxima at (1,0)]

3. Set A consists of all (𝑥 , 𝑥 ) satisfying

−2𝑥 + 𝑥 ≤ 2
𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 + 2𝑥 ≤ 8

Solve the following problems with A as the feasible set:

a) max 𝑥 [Ans.: (𝒙𝟏 , 𝒙𝟐 )=(4/5, 18/5) , Max=18/5]

b) max 𝑥 [Ans.: (𝒙𝟏 , 𝒙𝟐 )=(8,0) , Max=8]
c) max 3𝑥 + 2𝑥 [Ans.: (𝒙𝟏 , 𝒙𝟐 )=(8,0) , Max=24]
d) min 2𝑥 − 2𝑥 [Ans.: (𝒙𝟏 , 𝒙𝟐 )=(4/5,18/5) ,Min=-28/5]
𝟏
e) max 2𝑥 + 4𝑥 [Ans.: (𝒙𝟏 , 𝟒 − 𝒙𝟏 ) where 𝒙𝟏 ∈[4/5,8], Max=16]
𝟐
f) min −3𝑥 − 2𝑥 [Ans.: (𝒙𝟏 , 𝒙𝟐 )=(8,0) , Min=-24]

4. Using graphic method, find the maximum value of : Z = 7x + 10y subject to

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x + y  30,000

y  12,000

x  6,000

xy

x, y  0

[Ans.: Zmax = 2,46,000 at x = 18,000 and y = 12,000]

5. Solve the following linear programming problem by using graphical

method:
Maximize Z = 8x + 12y

Subject to

x+y=5

y2

x4

x, y  0

[Ans.: Zmax = 52 at x = 2 & y = 3]

6. Solve graphically:
Max Z = 50x + 30y
Subject to:
2x + y  18
x + y  12
3x + y  34
x, y  0
[Ans.: Zmax = 1020 at x = 0 & y = 34]
7. Solve the following L.P.P. by graphic method:
Maximize Z = 2.75x1 + 4.15x2

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Subject to:
2x1 + 2.5x2  100
4x1 + 8x2  160
7.5x1 + 5x2  150
x1, x2  0

[Ans.: Zmax = 166 at x1 = 0 and x2 = 40]

Exceptional Cases

1) Unbounded Solution
2) Multiple Optimal Solutions
3) Infeasibility / No Solution
4) Redundant Constraint
1) Unbounded Solution
8. Solve the following LPP using Graphical Method:
Maximize Z=4X+3Y

Subject to:
3x + 2y  160
5x + 2y  200
x + 2y  80
x, y  0
[Ans.: Unbounded Solution]
9. Find, graphically the maximum of:
Z = 16x + 25y
Subject to:
2x + y  7
x+y5
2x + 5y  16
And x  0, y  0 [Ans.: Unbounded Solution]
2) Multiple Optimal Solutions

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10. In linear programming, what is Multiple Solution Situation”. Solve the

following graphically and interpret the result:
Max.: Z = 4x + 3y
Subject to:
3x + 4y  24
8x + 6y  48
x5
y6
x, y  0
𝟐𝟒 𝟐𝟒 𝟒
[Ans.: Max. Z = 24 at , 𝒐𝒓 𝟓, ]
𝟕 𝟕 𝟑

11. Use the Graphical Method to solve the following LPP:

Maximize Z = 10x1 + 6x2
Subject to:
5x1 + 3x2  30
x1 + 2x2  18
x1, x2  0
[Ans.: Zmax = 60 at (6/7, 60/7) or at (6, 0)]
3) Infeasibility/ No Solution
12. In linear programming, what is a “Feasible Solution” and “Infeasible
Solution”? Solve the following by Graphic Method and Comment on the
result.
Min. Z = 3x1 + 2x2
Subject to:
-2x1 + 3x2  9
3x1 – 2x1  -20
x1, x2  0

[Ans.: No Solution]

13. Use the Graphical Method to solve the following LPP:

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Maximize Z = 4x + 2y
Subject to: 2x + 3y  18
x + y  10
x, y  0
[Ans.: No solution]

4) Redundant Constraint
14. What are “redundant constraints”? Which constraints are redundant in
the following with x1, x2  0:
4x1 + 3x2  12
-x1 + x2  1
x1 + x2  4
x1 + x2  6
[Ans.: Constraints 3 & 4]

LPP Application Solution using Graphical Method

1. A furniture dealer deals in only two items; table and chairs. He has Rs. 5,000
to invest and a space to store at the most 60 pieces. A table costs him Rs. 250
and a chair Rs. 50. He can sell a table at a profit of Rs. 50 and a chair at a
profit of Rs. 15. Assuming he can sell all the items that he buys, how should
he invest his money in order that he may maximize his profit? Use Graphical
Method.
[Ans.: Zmax = Rs. 1250; 50 chairs & 10 tables]

2. A carpenter has 90, 80 and 50 running feet respectively of teak, plywood and
rosewood. The product A requires 2, 1 and 1 running feet and product B
requires 1, 2 and 1 running feet of teak, plywood and rosewood respectively.
If A would sell for Rs. 48 and B would sell for Rs. 40 per unit, how much of

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Rahul Sir (Srcc Graduate , DSE Alumni)

each should he make and sell in order to obtain the maximum gross income
out of stock of wood?
(i) Give a mathematical formulation to this linear programming problem.
(ii) Use graphical method to solve the problem.
(iii) Indicate clearly the feasible region on graph paper.
[Ans.: Zmax = 2320 at x = 40 & y = 10]

3. A firm produces two types of television sets, an inexpensive type (A) and
an expensive type (B). the firm earns a profit of 700 from each TV of type
A, and 1000 for each TV of type B. There are three stages of the production
process. Stage I requires 3 hours of labor on each set of Type A and 5 hours
of labor on each set of type B. The total available number of hours 3900.
Stage II requires 1 hour of labor on each set of Type A and 3 hours on each
set of Type B. The total labor they have is 2100 hours. At stage III, 2 hours
of labor are needed for both types, and 2200 hours of labor are available.
How many TV sets of each type should the firm produce to maximize its
profit?
[Ans.: Zmax = 3900 at x = 800 & y = 300]

4. A baker has 150 kilogram of flour , 22 kilos of sugar and 27.5 kilos of butter
with which to make two type of cakes. Suppose that making one dozen A
cake requires 3 kilos of flour , 1 kilos of sugar and 1 kilos of butter ,whereas
making one dozen B cakes require 6 kilos of flour , 0.5 kilos of sugar and 1
kilos of butter. Suppose that the profit from one dozen A cakes is 20 and
from one dozen B cake ids 30.. How many dozen Type A and B cakes will
maximise the bakers profit ?
[Ans.: Zmax = 775 at ( 5, 22.5)]

5. A firm is producing two goods , A and B .it has two factories that jointly
produce the two goods in the following quantities(per hours):

Factory 1 Factory 2
Good A 10 20

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Good B 25 25

The firm receive an order for 300 units of A and 500 units of B. The cost of
operating the two factories are 10000 and 8000 per hour. Formulate the
linear programming problem of minimising the total cost of meeting this
order.
[Ans.: Zmin = 1.6 lakh at ( 0,20)]

Decision for the Resources on the basis of Marginal Value of objective

function

1. A firm produces small and medium television sets. The profit is 400 for
each small and 500 for each medium television set. Each television has to
be processed in three different divisions. Each small television requires
respectively 2, 1 and 1 hour divisions 1, 2 and 3. The corresponding
numbers for the medium television sets are 1, 4, and 2. Suppose divisions
1 and 2 both have a capacity of at most 16 hours per day, and division 3
has a capacity of at most 11 hours per day. Let 𝑥 and 𝑥 denote the
number of small and medium television sets that are produced per day.
a) Show that in order to maximize profits per day, one must solve the
following problems
2𝑥 + 𝑥 ≤ 16
max 400𝑥 + 500𝑥 subject to 𝑥 + 4𝑥 ≤ 16 𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 + 2𝑥 ≤ 11
b) Solve the problem graphically. [Ans.: Zmax =3800 at (7, 2) ]

c) If the firm could increase its capacity by 1 hour a day in just one of the
three divisions, which should be the first to have its capacity increase?
[Ans.: division 3]

2. In the Above question of Baker (Question 4) if firm would increase the

butter , sugar and flour by 1kilos then which one should give the
prioritiy first to increase. [Ans.: butter]

Duality and Duality Theorem

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1. Find the dual of the following problem:

Minimize; Z = 4x1 + 2x2 + 3x3
Subject to:
x1 + 2x2  3
x2 – 3x3  6
-x1 + 3x2 – 2x3  3
x1, x2, x3  0
[Ans.: Max. Z* = 3𝒖𝟏 + 6𝒖𝟐 – 3𝒖𝟑 , S. to: 𝒖𝟏 + 𝒖𝟑  4, 2𝒖𝟏 + 𝒖𝟐 – 3𝒖𝟑 2 , -
3𝒖𝟐 + 2𝒖𝟑  3, 𝒖𝟏 , 𝒖𝟐 , 𝒖𝟑  0]
2. Find the dual of the following:
Minimize Z = 5x1 – 6x2 + 4x3
Subject to
3x1 + 4x2 + 6x3  9
x1 + 3x2 + 2x3  5
7x1 – 2x2 – x3  10
x1 – 2x2 + 4x3  4
2x1 + 5x2 – 3x3 = 3
x1, x2, x3  0

[Ans.: Max Z* = 9𝒖𝟏 + 5𝒖𝟐 – 10𝒖𝟑 + 𝒖𝟒 + 2𝒖𝟓  5, - 4𝒖𝟏 – 3𝒖𝟐 – 2𝒖𝟑 – 2𝒖𝟒
– 5𝒖𝟓  6, 6𝒖𝟏 + 2𝒖𝟐 + 𝒖𝟑 + 4𝒖𝟒 – 3𝒖𝟓  4, 𝒖𝟏 , 𝒖𝟐 , 𝒖𝟑 , 𝒖𝟒  0, 𝒖𝟓
unrestricted in sign]

3. Write the dual to the following LPP:

Max. Z = 20x1 + 15x2 + 18x3 + 10x4
Subject to:
4x1 – 3x2 + 10x3 + 4x4  60
x1 + x2 + x3 = 27
- x2 + 4x3 + 7x4  35
x1, x2, x3  0, x4 unrestricted in sign

[Ans.: Max Z* = 60y1 + 27y2 – 35y3, S. to : - 4y1 + y2  20, - 3y1 + y2 + y3  15,

10y1 + y2 - 4y3  18, 4y1 – 7y3 = y1, y3  0, y2 : unrestricted in sign]
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4. Obtain the dual of the following LPP:

Min. W = 3y1 + 2y2 + y3

Subject to :

y1 + y2 + y3  4

y2 – y3  2

y1 + y2 + 2y3 = 6

y1, y3  0, y2 unrestricted in sign

[Ans.: Max Z = 4𝒖𝟏 + 2𝒖𝟐 + 6𝒖𝟑 ; S. to : 𝒖𝟏 + 𝒖𝟑  3, 𝒖𝟏 + 𝒖𝟐 + 𝒖𝟑 = 2, 𝒖𝟏 - 𝒖𝟐

+ 2𝒖𝟑  1, 𝒖𝟏 , 𝒖𝟐  0, - 𝒖𝟑 : unrestricted in sign]

5. Consider the problem

4𝑥 + 5𝑦 ≤ 20
max Z = 2𝑥 + 7𝑦 subject to 𝑥 ≥ 0, 𝑦 ≥ 0
3𝑥 + 7𝑦 ≤ 21

a. Solve it by a geometric argument. [ Ans.: Zmax = 21 at ( 0,3)]

b. Write down the dual and solve it by a geometric argument.
𝟒𝑢 + 𝟑𝑢 ≥ 𝟐
[Ans.:𝐌𝐢𝐧𝒁∗ = 𝟐𝟎𝑢 + 𝟐𝟏𝑢 𝐬𝐮𝐛𝐣𝐞𝐜𝐭 𝐭𝐨 𝑢 ≥ 𝟎, 𝑢 ≥ 𝟎 ]
𝟓𝑢 + 𝟕𝑢 ≥ 𝟕

c. Are the value of criterion functions equal? [ Ans.: Yes]

6. A firm is producing two goods , A and B .it has two factories that jointly
produce the two goods in the following quantities(per hours):

Factory 1 Factory 2
Good A 10 20
Good B 25 25

The firm receive an order for 300 units of A and 500 units of B. The cost of
operating the two factories are 10000 and 8000 per hour.
a. Formulate the linear programming problem of minimising the total cost
of meeting this order. [Ans.: Zmin = 1.6 lakh at ( 0,20)]

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Rahul Sir (Srcc Graduate , DSE Alumni)

b. Write its dual and solve it by graphiacal method.

𝟏𝟎𝑦 + 𝟐𝟓𝑦 ≤ 𝟏𝟎𝟎𝟎𝟎
[Ans.:𝐌𝐚𝐱 𝒁∗ = 𝟑𝟎𝟎𝑦 + 𝟓𝟎𝟎𝑦 𝐬𝐮𝐛𝐣𝐞𝐜𝐭 𝐭𝐨 𝑦 ≥
𝟐𝟎𝑦 + 𝟐𝟓𝑦 ≤ 𝟖𝟎𝟎𝟎
𝟎, 𝑦 ≥ 𝟎 ]

c. Are the value of criterion functions equal? [Ans.: Yes]

Change in the optimal value of objective function

1. In question Number 5 of Duality , if right hand side value of primal

constraint changes 20 to 20.1 and 21 to 20.8 .what is the corresponding
change in the criterion function. [Ans.: 0.2]
2. In question Number 6 of duality , if right hand side value of primal
constraint changes 10000 to 11000 and 8000 to 7900 .what is the
corresponding change in the criterion function. [Ans .:-32000]

Complementary Slackness
3𝑥 + 𝑥 + 𝑥 ≤ 2
1. max 3𝑥 + 4𝑥 + 6𝑥 s. t. 𝑥 + 2𝑥 + 6𝑥 ≤ 1
𝑥 ≥ 0, 𝑥 ≥ 0, 𝑥 ≥ 0

Write down its dual problem and solve it by geometric argument

.Then use complementary slackness to solve primal.

𝟑𝒖𝟏 + 𝒖𝟐 ≤ 𝟑
[Ans.:𝐦𝐢𝐧 𝟐𝒖𝟏 + 𝒖𝟐 𝐬. 𝐭. 𝒖𝟏 + 𝒖𝟐 ≤ 𝟒 𝒖𝟏 ≥ 𝟎, 𝒖𝟐 ≥ 𝟎,
𝒖𝟏 + 𝟔𝒖𝟐 ≤ 𝟔

𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐨𝐟 𝐩𝐫𝐢𝐦𝐚𝐥 (𝟑/𝟓, 𝟏/𝟓 , 𝟎)

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2. a) solve the following problem geometrically:

𝑦 + 6𝑦 ≥ 15
𝑦 +𝑦 ≥5
min 𝑦 + 2𝑦 subject to 𝑦 ≥ 0, 𝑦 ≥ 0
−𝑦 + 𝑦 ≥ −5
𝑦 − 2𝑦 ≥ −20

[ Ans.: Zmin = 7 at ( 3,2)]

b)write down the dual problem and solve it.

𝒖𝟏 + 𝒖𝟐 − 𝒖𝟑 + 𝒖𝟒 ≤ 𝟏
[Max 𝟏𝟓 𝒖𝟏 + 𝟓𝒖𝟐 − 𝟓𝒖𝟑 − 𝟐𝟎𝒖𝟒 𝐒. 𝐭 𝒖 ≥ 𝟎, 𝒖𝟐 ≥
𝟔𝒖𝟏 + 𝒖𝟐 + 𝒖𝟑 − 𝟐𝒖𝟒 ≤ 𝟐 𝟏
𝟎, 𝒖𝟑 ≥ 𝟎, 𝒖𝟒 ≥ 𝟎

Max at ( 1/5 ,4/5 ,0 ,0] [Hint: For solving dual use complementry slackness
cond.]

d) what happen to the optimal dual variables if the constraint 𝑦 + 6𝑦 ≥

15 is changed to 𝑦 + 6𝑦 ≥ 15.1? [Ans.: Unchanged, optima value of
primal and dual increase by 0.02]

3. A firm produces two commodities A and B. the firm has three factories that
jointly produce both commodities in the amounts per hour in the following
table.

Factory 1 Factory 2 Factory 3

Commodity A 10 20 20
Commodity B 20 10 20

The firm receives an order for 300 units of A and 500 units of B. the cost per
hour of running factories 1, 2, and 3 are respectively 10,000; 8,000; and 11,000.

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Rahul Sir (Srcc Graduate , DSE Alumni)

a. Let 𝑦 , 𝑦 and 𝑦 respectively, denote the number of hours for which the
three factories are used. Write down the linear programming problem of
minimizing the costs of fulfilling the order.
𝟏𝟎𝒚𝟏 + 𝟐𝟎𝒚𝟐 + 𝟐𝟎𝒚𝟑 ≥ 𝟑𝟎𝟎
[Ans.:Min10000𝒚𝟏 +8000𝒚𝟐 +11000𝒚𝟑 S.t 𝒚 ≥
𝟐𝟎𝒚𝟏 + 𝟏𝟎𝒚𝟐 + 𝟐𝟎𝒚𝟑 ≥ 𝟓𝟎𝟎 𝟏
𝟎, 𝒚𝟐 ≥ 𝟎, 𝒚𝟑 ≥ 𝟎,

b. Show that the dual of the problem in part (a) is

10𝑥 + 20𝑥 ≤ 10,000

max 300𝑥 + 500𝑥 s. t. 20𝑥 + 10𝑥 ≤ 8000 𝑥 ≥ 0, 𝑥 ≥ 0
20𝑥 + 20𝑥 ≤ 11,000

Solve this problem and then find the solution of the problem in part (a).

[Ans.: Maximum of dual =255000 at (100, 450) , Minimum of primal =255000

at (20 ,0 ,5)]

c. By how much will the minimum cost of production increase if the cost per
hour in factory 1 increases by 100? [ Ans.: Minimum cost will increase by
2000 ]

4. Consider the LP problem

𝑥 +𝑥 ≤ 3
max 3𝑥 + 2𝑥 s. t. 2𝑥 +𝑥 −𝑥 ≤ 1 𝑥 ≥ 0, 𝑥 ≥ 0, 𝑥 ≥ 0
𝑥 + 2𝑥 − 2𝑥 ≤ 1

a) Suppose 𝑥 is a fixed number. Solve the problem if 𝑥 = 0 and if 𝑥 = 3.

[Ans.:For 𝒙𝟑 = 𝟎 solution is 𝒙𝟏 =𝒙𝟐 =1/3,For 𝒙𝟑 = 𝟑 solution is
𝒙𝟏 =𝟏 , 𝒙𝟐 =2 ]

b) Solve the problem for any fixed value of 𝑥 in [0,∞). The maximal value
of 3𝑥 + 2𝑥 becomes a function 𝑥 . Find the function and maximize it.

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[Ans : If 0≤ 𝒙𝟑 ≤ 𝟕/𝟑 ,then 𝒁𝒎𝒂𝒙 = 2𝒙𝟑 +5/3 for 𝒙𝟏 = 1/3 and 𝒙𝟐 = 𝒙𝟑 +

1/3 , If 7/3 <𝒙𝟑 ≤5 then 𝒁𝒎𝒂𝒙 = 𝒙𝟑 +4 for 𝒙𝟏 = 𝒙𝟑 -2 and 𝒙𝟐 = 5-𝒙𝟑 ,If 𝒙𝟑 >5
then 𝒁𝒎𝒂𝒙 =9 for 𝒙𝟏 =3 and 𝒙𝟐 =0.]

c) Do the results in part (b) say anything a bout the solution to the original
problem in which 𝑥 can also be chosen? [Ans : The solution of the original
problem is 𝒙𝟏 =3 and 𝒙𝟐 =0 with 𝒙𝟑 ≥5 ]

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chapter-4
difference equation
First Order Linear Difference Equation

1. Find the solutions to the following difference equations with the given
values of 𝑥 :
a) 𝑥 = 2𝑥 + 4, 𝑥 = 1
b) 3𝑥 = 𝑥 + 2, 𝑥 = 2
c) 2𝑥 + 3𝑥 + 2, 𝑥 = −1
d) 𝑥 − 𝑥 + 3 = 0, 𝑥 = 3

[Ans.: a) 𝒙𝒕 =5.𝟐𝒕 −4 , b) 𝒙𝒕 =(𝟏/𝟑)𝒕 +1 ,c) 𝒙𝒕 =(-3/5)(−𝟑/𝟐)𝒕 −2/5 ,d) 𝒙𝒕 =-

3t+3 ]

2. Solve the difference equation:

𝑥 + 3𝑥 + 8 = 0 and 𝑥 = 1.Comment on the nature of the time path

[Ans.: 𝒙𝒕 = (−𝟑)𝒕 .3 −2 , Explosive Oscillation ]

3. Consider the Solution of first order difference equation explain how its
solution behaves in each of the following cases, with
𝑥 ∗ = 𝑏/(1 = 𝑎)(for 𝑎 ≠ 1):

a. 0 < 𝑎 < 1, 𝑥 < 𝑥 ∗

b. −1 < 𝑎 < 0, 𝑥 < 𝑥 ∗
c. 𝑎 > 1, 𝑥 > 𝑥 ∗
d. 𝑎 < −1, 𝑥 > 𝑥 ∗
e. 𝑎 ≠ 1, 𝑥 = 𝑥 ∗
f. 𝑎 = −1, 𝑥 ≠ 𝑥 ∗
g. 𝑎 = 1, 𝑏 > 0

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h. 𝑎 = 1, 𝑏 < 0
i. 𝑎 = 1, 𝑏 = 0

[Ans.: a) Monotone convergence to 𝒙∗ from below , b) Damped Oscillation around

𝒙∗ , c) Monotonically increasing towards ∞. d) Explosive Oscillation around 𝒙∗
e) 𝒙𝒕 = 𝒙∗ for all t , f) oscillation around 𝒙∗ with constant amplitude g)
Monotonically(Linearly) increasing towards ∞ , h) Monotonically(Linearly)
Decreasing towards -∞ , i) 𝒙𝒕 =𝒙𝟎 for all t ]

4. 𝑄 = 86- 0.8𝑃 ,where P is the market price

𝑄 = -10+ 0.2𝑃
i) Find the Equilibrium Price
ii) Solve the difference equation, where 𝑃 = 80.8
iii) Comment on the time path
[Ans.: i) 𝑷∗ =96 , ii) 𝑷𝒕 =(−𝟏/𝟒)𝒕 . (−𝟏𝟓. 𝟐) +96 , iii) Converge to 𝑷∗ ]
5. Consider the two sector model

𝑌 = 𝐶 +𝐼
𝐶 =0.75𝑌 +400
𝐼 =200
i) Find the difference equation in 𝑌 generated by the model.
ii) Solve the difference equation for 𝑌 and determine the solution path
that 𝑌 is convergent or divergent .
iii) Find the value of 𝐶 given 𝑌 = 100

[Ans.: i) 𝒀𝒕 =0.75𝒀𝒕 𝟏 +600 ii) 𝒀𝒕 = 𝟎. 𝟕𝟓𝒕 (𝒀𝟎 -2400) +2400, Converge iii) 𝑪𝟐 =
𝟗𝟎𝟔. 𝟐𝟓 ]

6. Show that 𝐴 is a given function of 𝑡, then the difference equation

𝑥 = 𝑎𝑥 +𝐴 (𝑡 = 1,2, … ) [1]

Has the solution

𝑥 = 𝑎 𝑥 + (𝑎 𝐴 +𝑎 𝐴 + ⋯+𝐴 ) [2]

In particular, let 𝐴 = 𝑏𝑐 for 𝑡 = 0,1 … ., and use the summation formula for
a geometric series to find an expression for the sum in the parentheses in [2]

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in this case. Hence, find the solution of the difference equation for 𝑎 ≠ 𝑐 and
for 𝑎 = 𝑐
𝒄𝒕 𝒂𝒕
[Ans.: 𝒙𝒕 =𝒂𝒕 𝒙𝟎 +( )b for 𝒂 ≠ 𝒄 , 𝒙𝒕 =𝒂𝒕 𝒙𝟎 +t𝒂𝒕 b for 𝒂 = 𝒄 ]
𝒄 𝒂

7. Consider the difference equation

𝑦 (𝑎 + 𝑏𝑦 ) = 𝑐𝑦 (𝑡 = 0,1 … , )

Where we assume that 𝑎, 𝑏 and 𝑐 are positive constants, and 𝑦 > 0

a) show that 𝑦 > 0 for all 𝑡 = 0,1 …

b) define a new function 𝑥 by 𝑥 = 1/𝑦 . Show that by using this
substitution, the difference equation is in the form of first order
difference equation ,next solve the difference equation
𝑦 (2 + 3𝑦 ) = 4𝑦
Assuming that 𝑦 = 1/2. What is the limit of 𝑦 as 𝑡 → ∞?

[Ans.: 𝒙𝒕 𝟏 = (a/c) 𝒙𝒕 +b/c, 𝒙𝒕 =[(𝟏/𝟐)𝒕 𝟏+3/2] and 𝒚𝒕 =[(𝟏/𝟐)𝒕 𝟏

+ 𝟑/𝟐] 𝟏 ]

8. Consider the following system for t= 0, 1….

= and 𝑃 = λ +β𝑊 [1]
Here 𝑊 denotes the wage level , 𝑃 the price index at time t , and λ and β are
constants. The first equation states that the proportional increase in wages
is equal the proportional increase in price index one period earlier , whereas
the second equation relates prices to the current wages.

a. Deduce from [1] the following equation for 𝑊 ;

= ( t =0 ,1 ,2,……) [2]

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b. Use [2] to prove that

𝑊 =c(λ + β𝑊 ) ( t =0 ,1 ,2,……)

Where c= , and find a general expression for 𝑊 when cβ ≠ 1. [3]

c. Under what conditions will [3] be stable and what is the limit of 𝑊 ,as
t→∞ in this case ?

[Ans : part a and b are the proof , c) The equation is stable iff | cβ |<1,
𝑊→ as t→∞ ]

Compound Interest and Present Discounted Value

1. A person Deposit 10000 initially @ 6% Compounded Annually. He also

Add rs 500 at the end of each year till 10 years . Find the difference
equation of the future value after t years. Solve the difference equation
and comment on the time path.
[Ans.:𝒘 𝒕 = (1.06)𝒘 𝒕 𝟏 + 500. , 𝒘 𝒕 = (𝟏. 𝟎𝟔)𝒕 (18333.33) +8333.33 ,
Diverge ]

2. Using Difference equation concept, Find the present value of rs 6000

due in 20 years at 5% Compounded Annually. [Ans.: 2261.33]

3. A person deposited rs 20000 initially, at the end of each year extra

deposit is rs 1000 and withdrawal rs 600 respectively @ 10%
Compounded annually . find the difference equation of future value of
cash flow at time t. solution of difference equation and comment on the
time path.
[Ans.:𝒘 𝒕 = (1.10)𝒘 𝒕 𝟏 +400, 𝒘 𝒕 = (𝟏. 𝟏𝟎)𝒕 (16000) +4000, Diverge ]

4. Using difference equation concept, find the initial deposit for a cash due
of rs 50000 at the end of 10 year and extra deposit of rs 1000 at the end
of year till 10 years. At the rate of 10% compounded annually.
[Ans.: 25421.72]
5. The number of employees in a company is currently 50000. It is
declining at 5% per annum. However there is net entry of new recruits
of 500 employee each year . write the difference equation for the

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number of employee after t years and solve it . check the stability of

equilibrium state and draw the diagram.

[Ans.:𝒘 𝒕 = (.95)𝒘 𝒕 𝟏 +500. , 𝒘 𝒕 = (. 𝟗𝟓)𝒕 (40000) +10000 , converge ]

6. The value of a machine depreciates 11% annually. If the present value is

Rs. 38,440, find its value three years ago.
[Ans.: Rs. 54,525]

7. Suppose at time t =0 , you borrow 100000 at fixed rate of interest r =

.07 per year , you are supposed to pay the loan in 30 equal installment.

i. How much is the yearly payment

ii. Interest Paid in 10th year
iii. Loan outstanding after 10 years.
iv. Total interest paid.

[Ans.: i)8058, ii) 6112.37 , iii) 85373.35 , iv) 141759.21.]

8. A loan of Rs. 10,000 is to be repaid by equal annual instalments of

principal and interest over a period of 20 years. The rate of interest is 3%
per annum effective. Find:
a. The annual instalment;
b. The capital contained in 8th instalment; and
c. The principal repaid after 12 instalments have been paid.
d. The total interest paid in 12 instalments.
[Ans.: (i) Rs. 672.14, (ii) Rs. 457.71, (iii) Rs. 5281.64, (iv) Rs. 2784.28]

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9. Mr. X purchased a T.V. on hire-purchase system, whose cash price is Rs.

20,000, paying Rs. 5,000 down payment and the balance in 20 equal
annual instalments at the end of each year. If the rate of interest is 5% per
annum compounded annually, find:
a. The amount payable in each installment.
b. Interest component of second instalments.
c. Principal repaid after 3 payments.
d. Principal repaid after second installment

[Ans.: (i) Rs. 3464.62, (ii) Rs. 614.27, (iii) Rs. 6442.15, (iv) Rs. 5564.98]

10. The population of a town is 8,00,000. During the first year, the
population increased by 25%. During the second year, the population
increased by 20%. During the third year, the population increased by
10%. Find the population after 3 years using difference equation concept.
[Ans.: 13,20,000]

11. A person deposited Rs. 1000 in a bank at 5% compounded

annually. After 5 years, the rate of interest was increased to 6% and after
4 more years, the rate was further increased to 7%. The money was
withdrawn at the end of 12 years. Find the amount.
[Ans.: Rs. 1973.86]

12. Find the present value of cash flow paying 1000 in the first year ,
2000 in the second year , 3000 in the third year @ 10% compounded

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annually in the first year , 20 % in the second year , 30 % in the third

year .
[Ans.: Rs. 4172.16]

13. A loan of amount $𝐿 is taken out on January 1 of year 0. Installment

payments for the principal and interest are made annually, commencing
on January 1 of year 1. Let the interest rate be 𝑟 < 2, so that the interest
amounts to 𝑟𝐿 for the first payment. The contract states that the principal
share of the repayment will be half the size of the interest share.
a) Show that the debt after January 1 of year 𝑛 is (1 − 𝑟/2) 𝐿.
b) Find 𝑟 when it is known the exactly half the original loan is paid after 10
years.
c) What will the remaining payments be each year if the contact is not
changed?

Second order Difference Equation.

1. Find the Solution of below Difference equation

a) 𝑥 − 6𝑥 + 8𝑥 = 0
b) 𝑥 − 8𝑥 + 16𝑥 = 0
c) 𝑥 + 2𝑥 + 3𝑥 = 0
d) 𝑥 − 2𝑥 +𝑥 =0
e) 𝑥 − 4𝑥 + 4𝑥 = 1
f) 𝑥 − 7𝑥 + 12𝑥 = 0
g) 3𝑥 + 2𝑥 = 4
h) 𝑥 + 2𝑥 + 𝑥 = 9. 2
i) 𝑥 − 3𝑥 + 2𝑥 = 3.5 + sin 𝜋𝑡

[Ans.: a) 𝒙𝒕 = 𝑨𝟐𝒕 + 𝑩𝟒𝒕 , b) 𝒙𝒕 = 𝑨𝟒𝒕 + 𝑩𝒕𝟒𝒕 ,c) 𝒙𝒕 = A𝟑𝒕/𝟐cos(ϴt+ω) where

cosϴ=−√𝟑/3 , d) 𝒙𝒕 = 𝑨 + 𝟐𝒕 , e) 𝒙𝒕 = 𝑨𝟐𝒕 + 𝑩𝒕𝟒𝒕 +1 ,f) 𝒙𝒕 = 𝑨𝟑𝒕 + 𝑩𝟒𝒕 ,
𝝅
g) 𝒙𝒕 =A (𝟐/𝟑)𝒕/𝟐 cos( t+ω)+4/5 , h) 𝒙𝒕 = 𝑨(−𝟏)𝒕 + 𝑩𝒕(−𝟏)𝒕 +𝟐𝒕 ,
𝟐
𝒕 𝟏 𝒕 𝟑 𝝅 𝟏 𝝅
𝐢)𝒙𝒕 = 𝑨 + 𝑩𝟐 + 𝟓 + cos t + Sin t ]
𝟒 𝟏𝟎 𝟐 𝟏𝟎 𝟐

2. Check the stability of the following equations by using [20.28].

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a. 𝑥 − 𝑥 = sin 𝑡
b. 𝑥 −𝑥 −𝑥 =0
c. 𝑥 − 𝑥 + 𝑥 =𝑡 𝑒
d. 𝑥 + 3𝑥 − 4𝑥 = 𝑡 − 1

[Ans.: a) Stable , b) Not Stable , c) Stable , d) Not Stable ]

3. The difference equation

𝑌 − 𝑎(1 + 𝑐 )𝑌 + 𝑎𝑐𝑌 = 𝑏

Assume that 𝑎 > 0, 𝑐 > 0 and 𝑎 ≠ 1.

a. Find a special solution of the equation.

b. Find the characteristic equation of the associated homogenous equation
and determine when it has two different real roots, a double real root,
and two complex roots.

[Ans.: a) 𝒚𝒕 ∗=b/(1-a) , b) 𝒎𝟐 - a(1+c)m +ac =0. Two different real roots ,

multiple roots or two complex roots depends upon a(𝟏 + 𝐜)𝟐 -4c >0 , =0
or <0.]

4. In a model on location theory, the following difference, equation is

encountered

𝐷 − 4(𝑎𝑏 + 1)𝐷 + 4𝑎 𝑏 𝐷 = 0. (𝑛 = 0,1 … , )

Where 𝑎 and 𝑏 are constants, and 𝐷 is the unknown function. Find the solution
of this equation assuming that 1 + 2𝑎𝑏 > 0.

[ Ans.: 𝑫𝒏 = A [𝟐(𝒂𝒃 + 𝟏 − √𝟏 + 𝟐𝒂𝒃)]𝒏 + B [𝟐(𝒂𝒃 + 𝟏 + √𝟏 + 𝟐𝒂𝒃)]𝒏 ]

5. A model due to B. J. Ball and E. Smolensky is based on the following system:

𝐶 = 𝑐𝑌 , 𝐾 = 𝜎𝑌 , 𝑌 =𝐶 +𝐾 −𝐾

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Where 𝐶 denotes consumption. 𝐾 capital stock, 𝑌 net national product and 𝑐

and 𝜎 are positive constants. Give an economic interpretation of the equations.

b) Derive a different equation of the second order for 𝑌 . Find necessary and
sufficient conditions for the solution of this equation to have explosive
oscillations.

[Ans.: a) The first two equations state that consumption and capital are
proportional to the net national product in the previous period . The third
equation states that net national product , 𝒀𝒕 is divided between consumption ,
𝑪𝒕 and net investment 𝑲𝒕 − 𝑲𝒕 𝟏 , b) 𝒀𝒕 𝟐 − (𝒄+𝝈) 𝒀𝒕 𝟏 +𝝈𝒀𝒕 =0 Explosive
oscillation occur when (𝒄 + 𝝈)𝟐 <4𝝈 and 𝝈<1 . ]

6. Prove the condition of second order difference equation |a|< 1+b and b<1
, when the chatacterstics polynomial has real roots by studying the
parabola f(m) =𝑚 +a𝑚+b.

7. A model due to J.R Hicks uses the following difference equation:

𝑌 − (𝑏 + 𝑘 )𝑌 + 𝑘𝑌 = 𝑎(1 + 𝑔) (𝑡 = 0,1, … )

Where 𝑎, 𝑏, 𝑔 and 𝑘 are constants.

a) Find a special solution 𝑌 ∗ of the equation.

b) Give conditions for the characteristic equation to have two complex roots.

c) Find the growth factor 𝑟 of the oscillations when the conditions obtained in
part (b) are satisfied, and determine when the oscillations are damped.
𝒂(𝟏 𝒈)𝒕
[Ans.: a ) 𝒀∗𝒕 = (𝟏 , b) (𝒃 + 𝒌)𝟐 <4k , c) r= √𝒌 ,damped oscillation
𝒈)𝟐 𝒃 (𝟏 𝒈) 𝒌𝒈
when k <1.]

8. The following equation appears in a paper by Akerlof and stiglitz:

𝜎𝛽
𝐾 − −2 𝐾 + (1 − 𝜎𝛽)𝐾 = 𝑑
𝛼

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Where the constant 𝛼 , 𝛽 , and 𝜎 are positive.

a. Find a condition for the roots of the Charteristic equation to be complex.

b. Find a necessary and sufficient condition for stability .

[Ans.: a) 𝜶𝜷 < 4𝜶 (1-𝜶) , b) 𝝈𝜷 <4𝜶 and 𝜶 <1 ]

9. Consider the difference equation

𝑥 −𝑒 𝑥 =𝑒 (𝑡 = 0,1, … . 𝑎 ≠ 0)

a. Find the general solution 𝑥 of the associated homogenous

equation expressed as a function of t and 𝑥 .
b. Prove that
𝑢∗ = 𝑒 ( )

Is a particular solution of the given nonhomogeneous equation,

also find the general solution of the given equation.

𝒂𝒕(𝒕 𝟏)
[Ans.: 𝒙𝒕 =𝒙𝟎 𝒆 , b) 𝒙𝒕 =𝒙𝒕 +𝒖𝒕∗ ]

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chapter -5

differential equation

Prove of Solution of Differential Equation

1. Show that 𝑥 (𝑡) = 𝐶𝑒 ̇ + 𝑥 (𝑡) = 𝑒

+ 𝑒 is a solution of the equation 𝑥(𝑡)
for all the values of 𝐶.

2. Consider the differential equation 𝑡𝑥(𝑡)̇ = 2𝑥.

a) Show that 𝑥 = 𝐶𝑡 is a solution for all choices of constant 𝐶.
b) Find in particular the integral curve through (1,2)

3. Show that any function 𝑥 = 𝑥(𝑡) that satisfies the equation 𝑥𝑒 = 𝐶 is a

solution of the differential equation (1 + 𝑡𝑥 )𝑥̇ = −𝑥

4. In each of the following cases, show that any function 𝑥 = 𝑥(𝑡) that satisfies
the equation on the left is a solution of the corresponding differential equation
on the right.

a) 𝑥 + 2√1 − 𝑡 = 0 𝑥̇ =
√
b) 𝑒 + 𝑒 (𝑥 + 1) + 𝐶 = 0, 𝑥𝑥̇ = 𝑡𝑒
c) (1 − 𝑡)𝑥 = 𝑡 , 2𝑡 𝑥̇ = 𝑥(𝑥 + 3𝑡 )

5. Show that 𝑥 = 𝐶𝑡 − 𝐶 is a solution of the differential equation 𝑥̇ = 𝑡𝑥̇ − 𝑥,

for all values of constant 𝐶. Then show that it is not the general solution
because 𝑥 = 𝑡 is also a solution.

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6. The function 𝑥 = 𝑥(𝑡) satisfies 𝑥 (0) = 0 and the differential equation 𝑥̇ =

(1 + 𝑥 )𝑡, for all 𝑡. Prove that 𝑡 = 0 is a global minimum point for 𝑥 (𝑡), and
that the function 𝑥(𝑡) is convex for all 𝑡.

7. Verify that the function y = e is a solution of the differential equation

y + y − 6y = 0.

8. Verify that the function y = √1 + x is a solution of the differential

equationy = .

Variable Separable Differential Equation

1. Decide which of the following differntial equations are separable:

a) 𝑥̇ = 𝑡 -1 , b) 𝑥̇ = 𝑥 𝑡+ 𝑡 , c) 𝑥̇ = 𝑥 𝑡+ 𝑡

d) 𝑥̇ 𝑥=𝑒 √1 + t ,e) 𝑥̇ = √𝑡 + 𝑥 ,f) 𝑥̇ = F(t)+G(x)

[Ans a) yes , b) yes , c) No , d) yes , e) No , f) No ]

2. Solve the Differential Equation

𝟏 𝟏
𝑥̇ = [Ans.: 𝒙𝟕 + 𝒙= 𝒕𝟒 +C ]
𝟕 𝟒

3. Solve the differential equation

𝟏
=−2𝑥 𝑡 [Ans.: 𝒙= ]
𝒕𝟐 𝒄

4. Find the general solution of the differential equation

(e + e )dy − (e − e )dx. [𝐀𝐧𝐬. : 𝐲 = 𝐥𝐨𝐠|𝐞𝐱 + 𝐞 𝐱 | + 𝐂]

5. Solve the following differential equations:

a) 𝑥̇ = 𝑡 − 𝑡
b) 𝑥̇ = 𝑡𝑒 − 𝑡

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c) 𝑒 𝑥̇ = 𝑡 + 1

𝟏 𝟏 𝟏 𝟏
[Ans.: a) 𝒙= 𝒕𝟒 − 𝒕𝟐 + 𝑪 , b) 𝒙=𝒕𝒆𝒕 − 𝒆𝒕 − 𝒕𝟐 + 𝑪 c) 𝒙= In( 𝒕𝟐 + 𝒕 + 𝑪)]
𝟒 𝟐 𝟐 𝟐

6. Find the solution 𝑥̇ = 𝑥. Find, in particular, the integral curve through

(0,1).
[Ans.: 𝒙 = 𝑪𝒆𝒕/𝟐 . For 𝑪 = 𝟏, the integral curve passes through (0,1).]
7. Find the solution of 𝑥̇ = 𝑎𝑥. Find, in particular, the integral curve through
(𝑡 , 𝑥 )
[Ans.:𝒙 = 𝑪𝒆𝒂𝒕 . For 𝑪 = 𝒙𝟎 𝒆 𝒂𝒕𝟎 , the integral curve passes through (𝒕𝟎 , 𝒙𝟎 )]

8. Find the particular Solution of below differential equation.

a. 𝑡𝑥̇ = 𝑥 (1 − 𝑡) (𝑡 , 𝑥 ) = (1,1/𝑒)
b. (1 + 𝑡 )𝑥̇ = 𝑡 𝑥, (𝑡 , 𝑥 ) = (0,2)
c. 𝑥𝑥̇ = 𝑡, (𝑡 , 𝑥 ) = √2, 1
d. 𝑒 − 𝑥 − 2𝑥 − 1 = 0, (𝑡 , 𝑥 ) = (0,0)
𝟑 𝒙𝟐 𝒕𝟐
[Ans.: a) 𝒙 = 𝑪𝒕𝒆 𝒕 ; 𝑪 = 𝟏 ,b) 𝒙 = 𝑪 √𝟏 + 𝒕𝟑 ; 𝑪 = 𝟐. c) = +𝑪 ,𝑪 =
𝟐 𝟐
𝟏 𝒆 𝟐𝒕 𝟏
−𝟏/𝟐 , d) − = + 𝑪, 𝑪 = ]
𝒙 𝟏 𝟐 𝟐

9. Solve the equation 𝑥 𝑥̇ = 𝑡 + 1. Find the integral curve through (𝑡, 𝑥 ) =

(1,1).
𝟑 𝟑 𝟐
[Ans.: 𝒙 = 𝒕 + 𝟑𝒕 + 𝟑𝑪. For 𝑪 = −𝟕/𝟔, the integral curve passes
𝟐
through (1,1)]
10. Find 𝑥 = 𝑥(𝑡) when 𝐸𝑙 , 𝑥, the elasticity 𝑡𝑥̇ /𝑥 of 𝑥 (𝑡) w.r.t, satisfies the
following equation for all 𝑟.
a. 𝐸𝑙 𝑥 = 𝑎
b. 𝐸𝑙 𝑥 = 𝑎𝑡 + 𝑏
c. 𝐸𝑙 𝑥 = 𝑎𝑥 + 𝑏
[Ans.: a) 𝒙 = 𝑪𝒕𝒂 , b) 𝒙 = 𝑪𝒕𝒃 𝒆𝒂𝒕 ,c) 𝒙 = 𝑪𝒕𝒃 𝒃/(𝟏 − 𝒂𝑪𝒕𝒃 ) ]

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11. Find the complete solution of 𝑥̇ + 𝑎(𝑡)𝑥 = 0. In particular, when

𝑎(𝑡) = 𝑎 + 𝑏𝑐 (𝑎, 𝑏 and 𝑐 are positive; 𝑐 ≠ 1) show that the solution
of the equation can be written in the form 𝑥 = 𝐶𝑝 𝑞 , where 𝑝 and 𝑞 are
constants determined by 𝑎, 𝑏 and 𝑐, where 𝐶 is an arbitrary constant. (This
is Gompertz-Makeham’s Law of Mortality).
12. The following differential equations have been studied in economics.
Solve them
a. 𝐾̇ = (𝐴𝑛 𝑎 )𝐾 𝑒 ( ℇ) , 𝑏 − 𝑐 ≠ 1, 𝑎𝑣 + 𝜀 ≠ 0
( )( )
b. 𝑥̇ = , 𝛼 > 0, 𝛽 > 0, 𝑎 > 0, 𝛼𝑎 ≠ 𝛽

𝑨𝒏𝜶
𝟎𝒂
𝒃
[Ans.: a) K=[ (𝟏 − 𝒃 + 𝒄)𝒆(𝜶𝝂 ℇ)𝒕
+ 𝑪]𝟏/(𝟏 𝒃 𝒄)
,b) ∣ 𝜶𝒙 − 𝜷 ∣𝜷/𝜶
𝜶𝝂 ℇ
𝒂 (𝜶𝒂 𝜷)𝒕
∣𝒙− 𝒂∣ = C𝒆 ]

13. Solve the differential equation when a≠b .

= B(𝑥 − 𝑎) (𝑥 − 𝑏)

Find the particular ,the solution when B=-1 , a=-1 ,and b=-2.
𝒃 𝒂 𝟑
[Ans.: 𝒙 = a + , 𝒙 = -1+ ]
𝟏 𝑪𝒆𝑩(𝒃 𝒂)𝒕 𝟏 𝑪𝒆 𝟑𝒕

14. Differential equation of the form 𝑥̇ = 𝑔 , where the RHS depends on

the ratio ,are called homogenous. Prove that if we substitute z= , a
homogenous equation becomes a separable equation with z as the
unknown function . Use this method to solve the equation 3𝑡𝑥 𝑥̇ =𝑥 + 𝑡 .
𝟑 𝟏 𝟑
[Ans.: t𝒛̇ = 𝒈(𝒛) − 𝒛. 𝒙 = 𝒕 + 𝑪𝒕 ]
𝟐

15. Suppose that ω = ω(t) >0 is the wealth in an account at time t , and
that r(t) is the rate of interest rate , with interest compounded
continuously. Then
𝛚̇ = 𝒓(𝒕)𝛚.
Using Variable Separable find the Solution of Differential Equation.

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𝒕
[Ans.: ω(t) = ω(0) 𝒆∫𝟎 𝒓(𝒔) ]

Linear Differential Equation

1. Find the general solution of the differential equation x + 2y = x .

𝐱𝟐 𝟐
[Ans.: 𝐲 = + 𝐂𝐱 ]
𝟒
2. Find the general solution of the differential equation y dx –
(x+2y )dy = 0.
[Ans.: 𝐱 = 𝟐𝐲 𝟐 + 𝐂𝐲]
3. Find the general solution of the differential equation (x + 3y ) =y
[Ans.: x=3y+c ]
4. Find the general solution of the differential equation (x + y) = 1.
[Ans.: 𝒙 = 𝐂𝐞𝐲 ]

5. Find the general solution of the differential equation

xlog x + y = log x
𝟐
[Ans.: y= [𝟏 + 𝐥𝐨𝐠𝐱] + 𝐂 ]
𝐱

6. Find the general solution of 𝑥̇ = 𝑥 + 𝑡

[Ans.: 𝒙 = 𝑪𝒆𝒕 − 𝒕 − 𝟏]

7. Find the general solution of 𝑥̇ + 𝑥 = .

𝒕/𝟐 𝟏
[Ans.: 𝒙 = 𝑪𝒆 + ]
𝟐

8. Find the general solution of 𝑥̇ + 2𝑥 = 8

𝟐𝒕
[Ans.: 𝒙 = 𝑪𝒆 + 𝟒]

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9. Find the general solutions of the following differential equations:

a) 𝑡𝑥̇ + 2𝑥 + 𝑡 = 0 (𝑡 ≠ 0)
b) 𝑥̇ − 𝑥 = 𝑡 (𝑡 > 0)
c) 𝑥̇ − 𝑥 = 𝑡 (𝑡 > 1)
d) 𝑥̇ − 𝑥 + =0 (𝑡 > 0)
𝟐 𝟏
[Ans.: a) 𝒙 = 𝑪𝒕 − 𝒕 ,b) 𝒙 = 𝑪𝒕 + 𝒕𝟐 ,c) 𝒙 = 𝑪√𝒕𝟐 − 𝟏 + 𝒕𝟐 − 𝟏 ,d) 𝒙 =
𝟑
𝑪𝒕𝟐 + 𝟐𝒂𝟐 /𝟑𝒕]

10. Find the general solutions of the following differential equations,

and in each case, find the integeral curve through (𝑡, 𝑥 ) = (0,1):
a) 𝑥̇ − 3𝑥 = 5
b) 3𝑥̇ + 2𝑥 + 16 = 0
c) 𝑥̇ + 2𝑥 = 𝑡

[Ans.: a) 𝒙 = 𝑪𝒆𝟑𝒕 − 𝟓/𝟑 ,C=8/3 , b) 𝒙 = 𝑪𝒆 𝟐𝒕/𝟑

− 𝟖, C=9 , c) 𝒙 = 𝑪𝒆 𝟐𝒕
+
𝟏 𝟐 𝟏 𝟏
𝒕 − 𝒕+ ,C=3/4 ]
𝟐 𝟐 𝟒

11. For the differential equation

𝑥̇ = 2𝑡𝑥 + 𝑡 (1 + 𝑡 )

show that the solution 𝑥(𝑡) that passes through (𝑡, 𝑥 ) = (0,0) has a local
minimum at 𝑡 = 0. Examine whether the limit lim 𝑥(𝑡) exists.
→

𝟐 𝟏
[Ans.: 𝒙(𝒕)= 𝒆𝒕 − 𝟏 − 𝒕𝟐 , 𝐥𝐢𝐦 𝒙(𝒕) does not exist ]
𝟐 𝒕→

12. Solve the linear differential equation

1 1
𝑝̇ + 𝑝= (𝑡 > 0)
𝑡 𝑡
Find, in particular, the solution that satisfies the requirement 𝑝(1) = 0. Check
the answer by direct substitution.

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𝟏
[Ans.: 𝒑 = 𝑪𝒆𝟏/𝒕 + + 𝟏 ,C=−𝟐/𝒆]
𝒕

13. In a macroeconomics model 𝐶 (𝑡), 𝐼(𝑡) and 𝑌(𝑡) denote respectively

the consumption, investment, and national income in a country at time 𝑡.
Assume that, for all 𝑡:
1. 𝐶 (𝑡) + 𝐼 (𝑡) = 𝑌(𝑡)
2. 𝐼 (𝑡) = 𝑘𝐶 (𝑡̇ )
3. 𝐶 (𝑡) = 𝑎𝑌 (𝑡) + 𝑏
Where 𝑎, 𝑏 and 𝑘 are positive constants, with 𝑎 < 1.

a) Derive the following differential equation for 𝑌(𝑡):

1−𝑎 𝑏
𝑌(𝑡) = 𝑌 (𝑡 ) −
𝑘𝑎 𝑘𝑎
b) Solve this equation when 𝑌 (0) = 𝑌 > and then find the
corresponding function. 𝐼 (𝑡)
c) Compute lim [𝑌(𝑡)/𝐼(𝑡)]
→
[Ans.: b) 𝒀(𝒕) = [𝒀𝟎 − 𝒃/(𝟏 − 𝒂)]𝒆(𝟏 𝒂)𝒕/𝒌𝒂
+ 𝒃/(𝟏 − 𝒂) and 𝑰(𝒕) = (𝟏 −
𝒂)𝒀(𝟏) − 𝒃 c) 𝟏/(𝟏 − 𝒂) ]

14. When the price of a commodity is P , let D(p) =a –bP denote the
demand and S(p) = α +𝛽𝑃 the supply. Here a ,b ,α , 𝛽 are positive
constant . Assume that the price P= P(t) varies with the time , and that
𝑃̇ is proportional to the excess demand D(P) –S(P).
Thus 𝑃̇ =λ [ D(P) –S(P) ], Find P(t).
𝛌(𝐛 𝜷) 𝒕 𝒂 𝜶
[Ans.: P = C 𝒆 + ]
𝒃 𝜷

15. Prove that differential equations of the form

𝑥 = 𝑄 (𝑡)𝑥 + 𝑅(𝑡)𝑥

(Bernoulli's equation)

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can be transformed into a linear equation by substituting 𝑧 = 𝑥 .

16. Solve the following instances of Bernoulli's equation:

a) 𝑥̇ = −𝑡𝑥 + 𝑡 𝑥
b) 𝑡𝑥̇ + 2𝑥 = 𝑡𝑥 (𝑡 ≠ 0)
c) 𝑥̇ = 4𝑥 + 2𝑒 √𝑥 (𝑥 > 0)

𝟐 𝟐
[Ans.: a) 𝒙 = 𝑪𝒆𝒕 + 𝒕𝟐 + 𝟏 ,b) 𝒙 = 𝟏/𝒕(𝟏 + 𝑪𝒕) ,c) 𝒙 = (𝑪𝒆𝟐𝒕 − 𝒆𝒕 )𝟐 ]

17. Generally, differential equations of the type

𝑥̇ = 𝑃(𝑡) + 𝒬(𝑡)𝑥 + 𝑅(𝑡)𝑥

(Riccati's equation)

can only be solved numerically. But if we happen to know one special solution
𝑢 = 𝑢(𝑡) of the equation, the substitution 𝑥 = 𝑢 + 1/𝑧 will turn the equation
into a linear equation in 𝑧 as a function of 𝑡. Verify this, and illustrate by finding
a formula for the general solution of

𝑡𝑥̇ = 𝑥 − (𝑥 − 𝑡)

[Ans.: Solution is 𝒙 = 𝒕 + 𝒕/(𝒕 + 𝑪)]

Equilibrium State , Stable and Unstable , phase Diagram

1. Draw phase diagrams associated with the differential equations and

determine the nature of the possible equilibrium states and Solve the
Differnential Equation .

a. 𝑥̇ = 𝑥−1
b. 𝑥̇ + 2𝑥 = 24
c. 𝑥̇ = 𝑥 −9
d. 𝑥̇ = 𝑥 +𝑥 −𝑥−1
e. 𝑥̇ = (𝑥 − 1)

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f. + 5y = 4
[Ans.: a) 𝒙=1(unstable) , Solution is 𝒙=𝑪𝒆𝒕 + 𝟏 ,
b) 𝒙=12(stable) , Solution is 𝒙=𝑪𝒆 𝟐𝒕 + 𝟏𝟐 ,
𝟑(𝟏 𝒆𝟔(𝒕 𝑪) )
c) 𝒙=-3(stable) , 𝒙=3(Unstable) , Solution is 𝒙= ,
𝟏 𝒆𝟔(𝒕 𝑪)
𝟏 𝟏
d) 𝒙=1 ,-1 (unstable) , Solution is 𝒕 + 𝑪 = 𝑰𝒏(𝒙 − 𝟏) − 𝑰𝒏(𝒙 +
𝟒 𝟒
𝟏 (𝟏 𝒆𝒕 𝑪)
𝟏) + ,e) 𝒙=-1(stable) , 𝒙=1(Unstable) ,Solution is 𝒙=
𝟐(𝒙 𝟏) 𝟏 𝒆𝒕 𝑪

𝟓𝒙
f) 𝒚 = 𝟒/𝟓 (Stable) , Solution is 𝒚 = 𝟒/𝟓 +𝑪𝒆 ]

Second order Differential Equation

1. Without using the Characterstics equation , find the general solutions of

the following.

a. 𝑥̈ = t b. 𝑥̈ = sint c. 𝑥̈ = 𝒆𝒕 + 𝑡
𝟏 𝟏
[Ans.: (a) 𝒙 = 𝒕𝟑 + 𝑨𝒕 + 𝑩 (b) 𝒙 = − 𝐬𝐢𝐧 𝒕 + 𝑨𝒕 + 𝑩 (c) 𝒙 = 𝒆𝒕 + 𝒕𝟒 +
𝟔 𝟏𝟐
𝑨𝒕 + 𝑩 ]

2. Prove that 𝑢 = 𝑒 , 𝑢 = 𝑒 both solve 𝑥̈ +𝑥̇ -6 𝑥 =0 ,what is the

general solution?
[Ans.: Use direct substitution , 𝒙 = 𝑨𝒆𝟐𝒕 + 𝑩𝒆 𝟑𝒕 ]
3. Prove that 𝑢 = 𝑒 , 𝑢 = 𝑡𝑒 both solve 𝑥̈ -2𝑥̇ + 𝑥 =0 ,what is the general
solution?
[Ans.: Use direct substitution , 𝒙 = 𝑨𝒆𝒕 + 𝑩𝒕𝒆𝒕 ]
4. Find the general Solution of the following second order differential
equation, and which of them are stable
a. 𝑥̈ − 3𝑥 = 0
b. 𝑥̈ + 4𝑥̇ + 8𝑥 = 0
c. 3𝑥̈ + 8𝑥̇ = 0
d. 4𝑥̈ + 4𝑥̇ + 𝑥 = 0
e. 𝑥̈ + 𝑥̇ − 6𝑥 = 8

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f. 𝑥̈ + 3𝑥̇ + 2𝑥 = 𝑒
g. 𝑥̈ − 𝑥 = sin 𝑡
h. 𝑥̈ − 𝑥 = 𝑒
i. 3𝑥̈ − 30𝑥̇ + 75𝑥 = 2𝑡 + 1
j. 4𝑥̈ − 15𝑥 + 14𝑥 = 𝑡 + sin 𝑡

[Ans.: 𝑨𝒆√𝟑𝒕 + 𝑩𝒆 √𝟑𝒕 ; unstable (b) 𝒙 = 𝒆 𝟐𝒕 (𝑪𝟏 𝐜𝐨𝐬 𝟐𝒕 + 𝑪𝟐 𝐬𝐢𝐧 𝟐𝒕);

stable (c) 𝒙 = 𝑨 + 𝑩𝒆 𝟖𝒕/𝟑; stable ,(d) 𝒙 = 𝒆 𝒕/𝟐(A+𝑩𝒕); stable
(e) 𝒙 = 𝑨 𝒆 𝟑𝒕+𝑩𝒆𝟐𝒕 −4/3 ; stable (f) 𝒙 = 𝑨𝒆 𝒕+𝑩𝒆 𝟐𝒕 −(1/42) 𝒆𝟓𝒕 ;
𝟏
stable (g) 𝒙 = 𝑨 𝒆𝒕 +𝑩𝒆 𝒕
− 𝒔𝒊𝒏𝒕 ; unstable
𝟐
𝒕 𝒕 𝟏 𝟐 𝟑
(h) 𝒙 = 𝑨 𝒆 +𝑩𝒆 − 𝒕𝒆 ; unstable (i) 𝒙 = 𝑨𝒆𝟓𝒕 + 𝑩𝒕𝒆𝟓𝒕 +
𝒕
𝒕+
𝟐 𝟕𝟓 𝟏𝟐𝟓
; unstable ,
𝟏 𝟏𝟓 𝟏
(j) 𝒙 = 𝑨𝒆𝟐𝒕 + 𝑩𝒆𝟕𝒕/ + 𝒕+ + (𝟐𝒔𝒊𝒏𝒕 + 𝟑𝒄𝒐𝒔𝒕); unstable ]
𝟏𝟒 𝟏𝟗𝟔 𝟔𝟓

5. Solve the following differential equations for the specific initial

conditions:
a. 𝑥̈ + 2𝑥̇ + 𝑥 = 𝑡 , 𝑥(0) = 0, 𝑥̇ (0) = 1
b. 𝑥̈ + 4𝑥 = 4𝑡 + 1, 𝑥(𝜋/2) = 0, 𝑥̇ (𝜋/2) = 0

𝒕 𝟏 𝝅 𝟏
[Ans.:(a) 𝒙 = −(𝟔 + 𝒕)𝒆 + 𝒕𝟐 − 𝟒𝒕 + 𝟔 (b) 𝒙 = 𝐬𝐢𝐧 𝟐𝒕 + + 𝐜𝐨𝐬 𝟐𝒕 +
𝟐 𝟐 𝟒
𝒕 + 𝟏/𝟒]

6. Let 𝑛 be an integer and let 𝑥 = 𝑓(𝑡) be a solution of 𝑥̈ + 𝑡 𝑥=0

a) Prove that 𝑥 = 𝑡𝑓(1/𝑡) is a solution of 𝑥̈ + 𝑡 𝑥 = 0.
b) Then solve the differential equation 𝑡 𝑥̈ + 𝑥 = 0.
[Ans.: (b) t(A Sin(1/t) +Bcos(1/t) ]

7. An economic model due to T. Haavelmo leads to the differential equation

𝑝̈ (𝑡) = 𝛾 (𝑎 − 𝛼 )𝑝(𝑡) + 𝑘 (𝛾, 𝛼, 𝑎 and 𝑘 are constants)
Solve the equation. Is it possible to choose the constants so that the
equation is stable?

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𝒌
[Ans.: For 𝝀 = 𝜸(𝒂 − 𝜶) >0 the solution is p(t) =A𝒆𝒓𝒕 + 𝑩𝒆 𝒓𝒕
− ,where
𝝀
𝟏 𝟐
r=√𝝀 : For 𝝀 = 𝟎 the solution is p(t) = At+B+ k𝒕 : For 𝝀 <0 the solution
𝟐
𝒌
is p(t) =𝑪𝟏 cosst+𝑪𝟐 Sinst− ,where s=√−𝝀. No Solution is stable ]
𝝀

8. Find a particular solution of the differential equation

𝐿̈ + 𝜆[𝛽 + 𝛼 (1 − 𝛽 )]𝐿̇ − 𝛾𝛿 ∗ 𝐿 = −𝛾𝛿 ∗𝑘𝑡 − 𝛾𝛿 ∗ 𝐿 (𝛾𝛿 ∗ ≠ 0)

and determine when the solution displays oscillations.

∗
[Ans.:𝒖∗ = 𝒌𝒕 + 𝑳𝟎 + [𝜷 + 𝜶(𝟏 − 𝜷)]𝒌/𝜹 is a particular solution. Oscillations
occur if (𝒚𝟐 /𝟒)[𝜷 + 𝜶(𝟏 − 𝜷)]𝟐 + 𝜸𝜹∗ < 𝟎]

9. A business cycle model due to F. Dresch incorporates the equation

𝑝̇ (𝑡) = 𝑎 𝐷 𝑝(𝜏) − 𝑆 𝑝(𝜏) 𝑑𝜏 (𝑎 > 0)

where 𝑝(𝑡) denotes a price index at time 𝑡, and 𝐷(𝑝) and 𝑆(𝑝) are aggregate
demand and supply, respectively. Thus, [*] says that the rate of price increase
de proportional to the accumulated total of all past excess demand. In the case
when 𝐷 (𝑝) = 𝑑 + 𝑑 𝑝 and 𝑆(𝑝) = 𝑠 + 𝑠 with 𝑑 < 0 and 𝑠 > 0,
differentiate (*) w.r.t. t in order to deduce a second-order differential equation
for 𝑝(𝑡). Then find the general solution of this equation.

[𝑨𝒏𝒔.: 𝒑̈ + 𝝀𝟐 𝒑 = 𝒂(𝒅𝟎 − 𝒔𝟎 ). Solutions: 𝒑 = 𝑪𝟏 𝐜𝐨𝐬 𝝀𝒕 + 𝑪𝟐 𝐬𝐢𝐧 𝝀𝒕 + (𝒅𝟎 −

𝒔𝟎 )/(𝒔𝟏 − 𝒅𝟏 ) where 𝝀 = [𝒂(𝒔𝟏 − 𝒅𝟏 )]𝟏/𝟐 ]

10. Consider the equation 𝑥̈ + 𝑎𝑥̇ + 𝑏𝑥 = 0 when 𝑎 − 𝑏 = 0, so that the

characteristic equation has a double root 𝑟 = −𝑎/2. Let 𝑥 (𝑡) = 𝑢(𝑡)𝑒
and prove that this function is a solution provided that 𝑢̈ = 0. Conclude
that the general solution is 𝑥 = (𝐴 + 𝐵𝑡)𝑒 in this case.
11. A study of the optimal exhaustion of a natural resource uses the equation
2−𝛼 𝑎
𝑥̈ − 𝑎𝑥̇ + 𝑥=0 (𝛼 ≠ 0, 𝛼 ≠ 1, 𝑎 ≠ 0)
1−𝛼 1−𝛼

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Prove that 𝑢 = 𝑒 and 𝜇 = 𝑒 /( )

are both solutions. What is the
general solution?
[Ans.: Solution is 𝒙 = 𝑨𝒆𝒂𝒕 + 𝑩𝒆𝒂𝒕/(𝟏 𝜶)
]

12. Let 𝑎 ≠ 𝑏 be two real numbers. Prove that the differential equation
(𝑡 + 𝑎)(𝑡 + 𝑏)𝑥̈ + 2(2𝑡 + 𝑎 + 𝑏)𝑥̇ + 2𝑥 = 0
has two solutions of the form (𝑡 + 𝑘) for appropriate choices of 𝑘. Find
the general solution of the equation.
[Ans.: 𝒙 =A(𝑡 + 𝑎) +B(𝑡 + 𝑏)

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