Linear Function

Definition: A function that increases or decreases at a constant rate.

Standard Form:

 f(x)=mx+bf(x) = mx + bf(x)=mx+b

where mmm is the slope and bbb is the y-intercept.

Graph: A straight line.

Example:

 f(x)=2x+3f(x) = 2x + 3f(x)=2x+3

Quadratic Function

Definition: A function where the highest degree of the variable is 2.

Standard Form:

 f(x)=ax2+bx+cf(x) = ax^2 + bx + cf(x)=ax2+bx+c

where a≠0a \neq 0a=0.

Graph: A parabola (U-shaped curve).

Example:

 f(x)=x2−4x+3f(x) = x^2 - 4x + 3f(x)=x2−4x+3

Exponential Function

Definition: A function in which a constant base is raised to a variable

exponent.

Standard Form:

 f(x)=a⋅bxf(x) = a \cdot b^xf(x)=a⋅bx

 where a≠0a \neq 0a=0, b>0b > 0b>0, and b≠1b \neq 1b=1.

Graph: Rapid increase (growth) or decrease (decay), depending on the value

of bbb.

Example:

 f(x)=2xf(x) = 2^xf(x)=2x

Logarithmic Function

Definition: The inverse of an exponential function; it gives the exponent to

which a base must be raised to produce a given number.

Standard Form:

 f(x)=log⁡b(x)f(x) = \log_b(x)f(x)=logb(x)

where b>0b > 0b>0 and b≠1b \neq 1b=1.

Graph: Grows slowly; has a vertical asymptote at x=0x = 0x=0.

Example:

 f(x)=log⁡2(x)f(x) = \log_2(x)f(x)=log2(x)

TYPES OF FUNCTIONS
Linear Function

Type: Polynomial Function (Degree 1)

General Form: f(x)=mx+bf(x) = mx + bf(x)=mx+b

Characteristics:

Constant rate of change (slope)

Straight-line graph

Domain & range: All real numbers

 Example: f(x)=4x−2f(x) = 4x - 2f(x)=4x−2

Quadratic Function


Type: Polynomial Function (Degree 2)

General Form: f(x)=ax2+bx+cf(x) = ax^2 + bx + cf(x)=ax2+bx+c

Characteristics:

Variable rate of change

U-shaped graph (parabola)

Minimum or maximum point (vertex)

Example: f(x)=x2−3x+2f(x) = x^2 - 3x + 2f(x)=x2−3x+2

Exponential Function

Type: Non-Polynomial / Transcendental Function

General Form: f(x)=a⋅bxf(x) = a \cdot b^xf(x)=a⋅bx, where b>0,b≠1b > 0, b \

neq 1b>0,b=1

Characteristics:

Rapid growth or decad

Horizontal asymptote (usually y = 0)

Domain: All real numbers; Range: Positive real numbers

Example: f(x)=2xf(x) = 2^xf(x)=2x

. Logarithmic Function

Type: Transcendental Function (inverse of exponential)

General Form: f(x)=log⁡b(x)f(x) = \log_b(x)f(x)=logb(x), where b>0,b≠1b >

0, b \neq 1b>0,b=1

Characteristics:

Slow growth

Vertical asymptote at x=0x = 0x=0

Domain: Positive real numbers; Range: All real numbers

Example: f(x)=log⁡10(x)f(x) = \log_{10}(x)f(x)=log10(x)

Summary Table:

Function Classificati Graph

Key
Standard Form
Type on Shape
Feature
Constant
Polynomial f(x)=mx+bf(x) = mx Straight
Linear rate of
(Degree 1) + bf(x)=mx+b line
change
Vertex
f(x)=ax2+bx+cf(x) =
Polynomial (min or
Quadratic ax^2 + bx + Parabola
(Degree 2) max
cf(x)=ax2+bx+c
point)
Curve Horizont
Exponenti Transcenden f(x)=a⋅bxf(x) = a \ (rapid al
al tal cdot b^xf(x)=a⋅bx growth/dec asymptot
ay) e
Vertical
Logarithm Transcenden f(x)=log⁡b(x)f(x) = \ Slow-rising
asymptot
ic tal log_b(x)f(x)=logb(x) curve
e
 Graphical representations of functions ;
It visually display the relationship
between input and output values on a coordinate plane. These graphs help in
understanding the behavior of the function, including its shape, intercepts, and
rate of change. Different types of functions have distinct graphical
representations, such as lines for linear functions, parabolas for quadratic
functions, and waves for trigonometric functions.
How to Graph a Function:
.
1. Choose a set of axes:
.
Typically, the independent variable (input) is plotted on the horizontal x-axis,
and the dependent variable (output) is plotted on the vertical y-axis.
.
.
2. Create a table of values:
.
Select various input values and calculate the corresponding output values
using the function's equation.
.
.
3. Plot the points:
.
Mark the points (x, y) from the table on the coordinate plane.
.
.
4. Connect the points:
.
Draw a smooth curve or line through the plotted points to create the graph of
the function.
.

Types of Function Graphs:

 Linear Functions: Result in straight lines.
 Quadratic Functions: Result in parabolas (U-shaped curves).
 Trigonometric Functions: Can result in wavy curves like sine and cosine
waves.
 Other Function Types: Exponential, logarithmic, and polynomial functions
each have their unique graphical representations.
Benefits of Graphical Representation:
 Visualization: Graphs provide a visual understanding of the function's
behavior.
 Analysis: They help in identifying key features of the function, such as
intercepts, asymptotes, and where the function is increasing or decreasing.
 Problem Solving: Graphs can be used to solve equations, analyze rates of
change, and visualize relationships between variables

examples of functions in economics, commonly used to model relationships such as

cost, revenue, and profit. These functions help businesses and economists make
decisions based on mathematical models.

📌 1. Cost Function (C(x))



Definition: Represents the total cost of producing xxx units of a good.

Example (Linear):

 C(x)=5x+200C(x) = 5x + 200C(x)=5x+200
o

5x5x5x: Variable cost (e.g., $5 per unit)

200200200: Fixed cost (e.g., rent, equipment)

Example (Quadratic):

 C(x)=0.1x2+5x+200C(x) = 0.1x^2 + 5x + 200C(x)=0.1x2+5x+200

Includes increasing marginal cost (common in production with

inefficiencies)

2. Revenue Function (R(x))

Definition: Total income from selling xxx units.

Formula:

 R(x)=p⋅xR(x) = p \cdot xR(x)=p⋅x

 where ppp is the price per unit.

Example:

 R(x)=20xR(x) = 20xR(x)=20x

Selling price is $20 per unit

📌 3. Profit Function (P(x))

Definition: The difference between revenue and cost.

Formula:

 P(x)=R(x)−C(x)P(x) = R(x) - C(x)P(x)=R(x)−C(x)



Example:

 P(x)=20x−(5x+200)=15x−200P(x) = 20x - (5x + 200) = 15x -

200P(x)=20x−(5x+200)=15x−200

📌 4. Demand Function (D(p))

Definition: Shows the quantity demanded at a given price.

Example (Linear):

 D(p)=100−2pD(p) = 100 - 2pD(p)=100−2p

o

As price increases, demand decreases.

5. Supply Function (SP)

Definition: Shows the quantity supplied at a given price.

 Example:

 S(p)=10+3pS(p) = 10 + 3pS(p)=10+3p

As price increases, supply increases.

📌 6. Utility Function (U(x, y))

Definition: Represents consumer satisfaction from consuming goods xxx and

yyy.

Example (Cobb-Douglas):

 U(x,y)=x0.5y0.5U(x, y) = x^{0.5}y^{0.5}U(x,y)=x0.5y0.5

Definition of Demand Function

A demand function shows the relationship between the quantity of a good or
service demanded and its determinants, mainly price, while keeping other factors
constant.

Qd=f(p)Q_d = f(p)Qd=f(p)

Where:

QdQ_dQd = Quantity demanded

ppp = Price of the good

f(p)f(p)f(p) = Demand function (how demand responds to price)

Law of Demand
📌 Definition:

The Law of Demand states that, ceteris paribus (all else being equal), when the
price of a good increases, the quantity demanded decreases, and vice versa.
📌 Key Idea:

There is an inverse relationship between price and quantity demanded.

✅ 3. Mathematical Expression of the Law

of Demand
📌 Linear Demand Function (most common form):

Qd=a−bpQ_d = a - bpQd=a−bp

Where:

QdQ_dQd: Quantity demanded




ppp: Price




aaa: Maximum quantity demanded (when price is 0)




bbb: Sensitivity to price (slope); must be positive to reflect inverse relation

🔸 As ppp increases, QdQ_dQd decreases.

Linear vs. Non-Linear Demand Functions

Linear Demand
Feature Non-Linear Demand Function
Function
Qd=a⋅p−bQ_d = a \cdot p^{-b}Qd
Qd=a−bpQ_d = a -
Form =a⋅p−b, Qd=a−bp2Q_d = a -
bpQd=a−bp
bp^2Qd=a−bp2, etc.
Straight line
Graph Curved line
(downward sloping)
 Linear Demand
Feature Non-Linear Demand Function
Function
Constant change in
Rate of
quantity per price Varies with price
Change
unit
Ease of Simple to interpret
More accurate in complex models
Use and calculate
Exampl Qd=100−5pQ_d = Qd=500⋅p−1.5Q_d = 500 \cdot p^{-
e 100 - 5pQd=100−5p 1.5}Qd=500⋅p−1.5

Examples
➤ Linear Example:

Qd=100−4pQ_d = 100 - 4pQd=100−4p

At p=10p = 10p=10: Qd=100−40=60Q_d = 100 - 40 = 60Qd=100−40=60

➤ Non-Linear Example (Power Function):

Qd=300⋅p−1Q_d = 300 \cdot p^{-1}Qd=300⋅p−1

At p=10p = 10p=10: Qd=300/10=30Q_d = 300 / 10 = 30Qd=300/10=30

Factors affecting demand

Several factors influence the demand for a product or
service. These include the price of the product itself, the income of
consumers, and their preferences. Changes in these factors can
lead to shifts in the demand curve, represented graphically.
1. Price of the Commodity:


Concept:


The most direct factor influencing demand is the price of the

product. Generally, as prices increase, the quantity demanded
decreases, and vice versa. This is known as the Law of Demand.



Real-world Example:


If the price of coffee increases, people might switch to tea (a

substitute good) or reduce their overall coffee consumption, thus
decreasing demand for coffee.


Graphical Analysis:

An increase in price causes a movement along the demand curve,
leading to a decrease in quantity demanded. Conversely, a
decrease in price causes a movement along the demand curve in
the opposite direction.


2. Income of the Consumer:



Concept:


Changes in consumer income can significantly impact

demand. For normal goods, demand increases as income rises,
while for inferior goods, demand may decrease as income
increases.



Real-world Example:


As people's incomes rise, they might start buying more expensive

brands of clothing or dining out more often (normal
goods). Conversely, they might buy less of generic or store-brand
groceries (inferior goods).


Graphical Analysis:

Changes in income cause a shift of the entire demand curve. An
increase in income shifts the demand curve to the right (increase
in demand), and a decrease in income shifts it to the left
(decrease in demand).


3. Tastes and Preferences:



Concept:


Consumer preferences, influenced by factors like trends,

advertising, and personal habits, play a crucial role in
demand. Changes in these preferences can lead to a shift in
demand.



Real-world Example:


If a new health trend emerges that promotes the consumption of a

particular type of fruit, the demand for that fruit is likely to
increase, even if the price remains the same.


Graphical Analysis:

Similar to income, changes in tastes and preferences cause a shift
of the demand curve. Increased preference shifts the curve to the
right, and decreased preference shifts it to the left.


4. Prices of Related Goods:



Concept:


Related goods can be substitutes (goods that can be used in

place of another, like tea and coffee) or complements (goods that
are used together, like cars and petrol).



Real-world Example:


If the price of coffee increases, the demand for tea (a substitute) is

likely to increase. Conversely, if the price of petrol increases, the
demand for cars (a complement) might decrease.


Graphical Analysis:

Changes in the prices of related goods can cause the demand
curve for the original good to shift. An increase in the price of a
substitute good will shift the demand curve for the original good to
the right.


5. Consumer Expectations:


Concept:


Consumer expectations about future prices or income can also

affect current demand. For example, if consumers expect prices to
rise in the future, they may increase their current purchases.



Real-world Example:


If a popular video game is expected to be released at a higher

price in the future, consumers may choose to purchase it now to
take advantage of the current lower price, increasing current
demand.


Graphical Analysis:

Like income and preferences, changes in consumer expectations
also lead to a shift of the demand curve
