~~MT1174_ZA_2016_d0

This paper is not to be removed from the Examination Halls

UNIVERSITY OF LONDON MT1174 ZA

BSc degrees and Diplomas for Graduates in Economics, Management, Finance

and the Social Sciences, the Diplomas in Economics and Social Sciences

Calculus

Thursday, 5 May 2016 : 10:00 to 13:00

Candidates should answer all FIVE questions. All questions carry equal marks.

Calculators may not be used for this paper.

PLEASE TURN OVER

© University of London 2016

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1. (a) The elasticity of demand for a good is given by
3p2 + 7p
ε= .
p2 + 4p + 3
Find the demand function, q D (p), for this good if q D (1) = 1.
(b) The function f is given by

f (x) = ex − x.

For x ≥ 0, show that f ′ (x) ≥ 0 and deduce that ex ≥ 1 + x.

By considering an appropriate function, use a similar method to show that

x x2
e ≥1+x+ .
2
(c) A monopoly sells its product in a market where the demand function is q D (p) = 18 − p
and its cost function is C(q) = q 2 + 2q + 24.
Find the firm’s profit function, π(q), and determine the value of q which maximises
this profit.

2. (a) In a market, the inverse demand function is given by pD (q) = a − bq for some positive
constants a and b, the equilibrium price is 4 and the equilibrium quantity is 1.
Given that the consumer surplus is 1, find a and b.
(b) Find and classify the stationary points of f where

f (x, y) = y 4 − 2ay 2 − x2 + 1,

and a is a positive constant.

Deduce the nature of any stationary points of f when a is a negative constant.
What happens when a = 0? Justify your answer.

y 4
3. Consider the function f given by f (x, y) = for x 6= 0 and the curve y = 5 − .
x x−1
(a) Sketch the curve clearly labelling all important features.
(b) On your diagram from part (a), sketch some contours f (x, y) = c for positive values
of c and indicate the direction in which f is increasing.
(c) Consider the problem of optimising f (x, y) subject to the constraint that (x, y) lies on
the curve.
Using your sketch, indicate the two points which would be discovered by the method
of Lagrange multipliers and explain why one is a local maximum and the other is a
local minimum.
(d) Use the method of Lagrange multipliers to find the points discussed in part (c).

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 Z e
4. (a) For n ∈ R, evaluate the integral xn ln(x) dx.
1
(b) State the compound angle formula for cos(A + B) and use it to show that

cos(2θ) = 2 cos2 (θ) − 1.

Evaluate the integrals

Z π/2 Z π/2
2
(i) cos (θ) dθ and (ii) cos3 (θ) dθ.
0 0
Z 1
1 + x3
(c) Evaluate the integral dx.
0 1 + x2

5. (a) Show that the differential equation

dy
xy + y 2 − x2 = 0,
dx
is homogeneous and determine its degree of homogeneity.
Hence, given that y(1) = 1, solve this differential equation.
(b) Solve the differential equation

y ′′ (t) − y ′ (t) − 2y(t) = −4,

with y(0) = 1 and y ′ (0) = 1.

Describe the behaviour of this solution as t increases.

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END OF PAPER

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