section 1 - Aniko Oery University of California, Berkeley...

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Aniko Oery University of California, Berkeley Section 1: Math Review Econ 100A, MICRO-ECONOMIC ANALYSIS, Spring 2010 In Microeconomics we try to model the behavior of firms and consumers under the constraint of scarce resources. We try to do this by assuming that firms maximize their profit functions and consumers maximize their utility (constrained optimization). Moreover, we model the aggregate outcome in the market using supply and demand functions (equilibrium analysis). Therefore, we need to use some mathematical tools which we will discuss in this section. Most of this should be a review for you. 1 Different Types of Functions 1.1 Univariate functions (with a single independent variable) y |{z} dependent variable = f ( x |{z} independent variable ) Examples: polynomial: y = f ( x ) = a + bx + cx 2 + dx 3 + . . . (e.g. linear: y = f ( x ) = a + bx , quadratic: y = f ( x ) = a + bx + cx 2 ) exponential: y = f ( x ) = exp( x ) = e x logarithmic: y = f ( x ) = log( x ) = ln(
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section 1 - Aniko Oery University of California, Berkeley...

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