chapter 7 : partial differentiation....determine the first partial derivative of z w.r.t y:.. treat...

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CHAPTER 7 : PARTIAL DIFFERENTIATION. © John Wiley and Sons 2013 www.wiley.com/college/Bradley © John Wiley and Sons 2013 Essential Mathematics for Economics and Business, 4 th Edition

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  • CHAPTER 7 : PARTIAL DIFFERENTIATION.

    © John Wiley and Sons 2013 www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Essential Mathematics for Economics and Business, 4th Edition

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    • What is partial differentiation • How to get first order partial derivatives • How to get second order partial derivatives • Worked Example 7.2 • Worked Example 7.3 • Worked Example 7.4

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Graphs and derivatives for function of one variable

    Ordinary differentiation:

    Example

    26249)( 23 +−+−= xxxxf 26249 23 +−+−= xxxy

    Graph: a curve in 2 dimensions

    OR

    24183 2 −+−= xxdxdy

    18622

    +−= xdx

    yd

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Functions of several variables

    Copyright© 2013 Teresa Bradley and John Wiley & Sons Ltd

    ..treat y as a constant

    Example

    Graph: a surface in 3 dimensions

    OR 42),( ++= yxyxf 42 ++= yxz

    To differentiate z partially with respect to x

    Partial differentiation

    ..then differentiate w.r.t. x:

    xzxz or ∂∂

    N.B. ∂ ..denotes partial differentiation d ..denotes ordinary differentiation

    ..denote the partial derivative of z wrt x

    --see next slide

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Determine the first partial derivative of z w.r.t x:

    Worked Example 7.2(a) 42 ++= yxz

    ..treat y as a constant

    ..then differentiate z w.r.t. x:

    4][2 ++= yxz

    1001 =++=∂∂xz

    ..since derivatives of constant terms (2y and 4) are zero

    xzxz or ∂∂

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Determine the first partial derivative of z w.r.t y: or zy

    Worked Example 7.2(b) 42 ++= yxz

    ..treat x as a constant

    ..then differentiate w.r.t. y:

    yz∂∂

    42][ ++= yxz

    20)1(20 =++=∂∂yz

    ..since derivatives of constant terms (x and 4) are zero

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Worked Example 7.3

    Find the first-order partial derivatives for each of the following functions.

    (a) (b) (c)

    532 2 ++= yxxz

    3.07.010 KLQ =

    U x y= 2 5

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Determine the first partial derivative of z w.r.t x:

    ..treat y as a constant

    ..then differentiate w.r.t. x: yxxz )1(3)2(2 +=∂∂

    532 2 ++= yxxzWorked Example 7.3(a) 5][32 2 ++= yxxz

    yxxz 34 +=∂∂

    xzxz or ∂∂

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Determine the first partial derivative of z w.r.t y:

    ..treat x as a constant

    ..then differentiate z w.r.t. y:

    yzyz or ∂∂

    0)1(30 ++=∂∂ xyz

    532 2 ++= yxxzWorked Example 7.3(a) 5][3][2 2 ++= yxxz

    xyz 3=∂∂

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Determine the first partial derivative of Q wrt L:

    ..treat K as a constant

    ..then differentiate Q w.r.t. L:

    LQLQ or ∂∂

    Worked Example 7.3(b) 3.07.010 KLQ =

    ][10 3.07.0 KLQ =

    ( ) 3.017.07.010 KLLQ −=∂∂

    3.03.07 KLLQ −=∂∂

    http://www.wiley.com/college/Bradley

  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the first partial derivative of Q wrt K:

    ..treat L as a constant

    ..then differentiate Q w.r.t. K:

    KQKQ or ∂∂

    Worked Example 7.3(b) 3.07.010 KLQ =

    3.07.0 ][10 KLQ =

    ( )13.07.0 3.010 −=∂∂ KLKQ

    7.07.03 −=∂∂ KLKQ

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the first partial derivative of U wrt x:

    ..treat y as a constant

    ..then differentiate U w.r.t. x:

    xU∂∂

    Worked Example 7.3(c)

    ( ) 52 yxxU

    =∂∂

    U x y= 2 5

    ][ 52 yxU =

    52xyxU

    =∂∂

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the first partial derivative of U wrt y:

    ..treat x as a constant

    ..then differentiate U w.r.t. y:

    yU∂∂

    Worked Example 7.3(c)

    )5( 42 yxyU

    =∂∂

    U x y= 2 5

    52][ yxU =

    425 yxyU

    =∂∂

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    Worked Example 7.4

    Find the second order partial derivatives for each of the following functions.

    (a)

    (b)

    (c)

    532 2 ++= yxxz

    3.07.010 KLQ =

    U x y= 2 5

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    or zxx : second partial derivative of z wrt x:

    ..treat y as a constant

    ..differentiate

    2

    2

    xz

    ∂∂

    532 2 ++= yxxzWorked Example 7.4(a)

    yxxz 34 +=∂∂

    ..first partial derivative zx see Worked Example 7.3

    ][34 yxxz

    +=∂∂

    04)1(422

    +==∂∂xz

    xz∂∂ w.r.t x

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second partial derivative of z wrt y:

    ..treat x as a constant

    ..differentiate w.r.t. y:

    2

    2

    yz

    ∂∂

    532 2 ++= yxxzWorked Example 7.4(a)

    xyz 3=∂∂

    ..first partial derivative zy see Worked Example 7.3

    ][3 xyz=

    ∂∂

    022

    =∂∂yz

    yz∂∂

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second partial derivative of z wrt x and y:

    ..treat x as a constant

    ..differentiate w.r.t. y:

    xyz∂∂

    ∂2

    532 2 ++= yxxzWorked Example 7.4(a)

    yxxz 34 +=∂∂

    ..first partial derivative zx see Worked Example 7.3

    xz∂∂

    yxxz 3][4 +=∂∂

    3)1(302

    =+=∂∂

    ∂xy

    z

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    or QLL: second partial derivative of Q wrt L

    ..treat K as a constant

    ..then differentiate QL w.r.t. L:

    2

    2

    LQ

    ∂∂

    Worked Example 7.4(b) 3.07.010 KLQ =

    ( ) 3.013.022

    3.07 KLLQ −−−=

    3.03.07 KLLQ −=∂∂

    ..first partial derivative: QL

    ][7 3.03.0 KLLQ −=∂∂

    3.03.12

    21.2 KL

    LQ −−=

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    : the second partial derivative of Q wrt K

    Copyright© 2013 Teresa Bradley and John Wiley & Sons Ltd

    ..treat L as a constant

    ..differentiate QK w.r.t. K:

    2

    2

    KQ

    ∂∂

    Worked Example 7.4(b) 3.07.010 KLQ =

    ( )17.07.022

    7.03 −−−=∂

    ∂ KLK

    Q

    7.07.03 −=∂∂ KLKQ

    ..first partial derivative QK

    7.17.02

    21.2 −−=

    ∂ KLK

    Q

    7.07.0 ][3 −=∂∂ KLKQ

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second ‘mixed’ partial derivative of Q

    Copyright© 2013 Teresa Bradley and John Wiley & Sons Ltd

    ..treat L as a constant

    ..differentiate QL w.r.t. K:

    LKQ∂∂

    ∂2

    Worked Example 7.4(b) 3.07.010 KLQ =

    ( )13.03.02 3.07 −−=∂∂

    ∂ KLLK

    Q

    3.03.07 KLLQ −=∂∂..first partial derivative: QL

    3.03.0 ][7 KLLQ −=∂∂

    7.03.12

    1.2 −−=∂∂

    ∂ KLLK

    Q

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second partial derivative: Uxx

    Copyright© 2013 Teresa Bradley and John Wiley & Sons Ltd

    ..treat y as a constant

    ..then differentiate Ux w.r.t. x:

    2

    2

    xU

    ∂∂

    Worked Example 7.4(c)

    ][2 5yxxU

    =∂∂

    U x y= 2 5

    52xyxU

    =∂∂

    ..first partial derivative: Ux

    552

    22)1(2 yy

    xU

    ==∂

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second partial derivative: Uyy

    Copyright© 2013 Teresa Bradley and John Wiley & Sons Ltd

    ..treat x as a constant

    ..then differentiate Uy w.r.t. y:

    2

    2

    yU

    ∂∂

    Worked Example 7.4(c) U x y= 2 5

    425 yxyU

    =∂∂

    ..first partial derivative: Uy

    32322

    220)4(5 yxyx

    yU

    ==∂

    42][5 yxyU

    =∂∂

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  • www.wiley.com/college/Bradley © John Wiley and Sons 2013

    the second mixed derivative: Uxy

    ..treat x as a constant

    ..then differentiate Ux w.r.t. y:

    xyU∂∂

    ∂2

    Worked Example 7.4(c)

    5][2 yxxU

    =∂∂

    U x y= 2 5

    52xyxU

    =∂∂

    ..first partial derivative: Ux

    442

    10)5(2 xyyxxy

    U==

    ∂∂∂

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    Chapter 7 : partial differentiation.�Slide Number 2Graphs and derivatives for function of one variableFunctions of several variables Determine the first partial derivative of z w.r.t x: �Determine the first partial derivative of z w.r.t y: or zy �Worked Example 7.3Determine the first partial derivative of z w.r.t x:Determine the first partial derivative of z w.r.t y: �Determine the first partial derivative of Q wrt L: the first partial derivative of Q wrt K: the first partial derivative of U wrt x: the first partial derivative of U wrt y: Worked Example 7.4 or zxx : second partial derivative of z wrt x: the second partial derivative of z wrt y: the second partial derivative of z wrt x and y: or QLL: second partial derivative of Q wrt L : the second partial derivative of Q wrt K the second ‘mixed’ partial derivative of Q the second partial derivative: Uxx the second partial derivative: Uyy the second mixed derivative: Uxy