Chapter 7

Additional
Integration
Topics
 7.1. Area Between Two Curves

Negative Values for the Definite Integral

If f (x) is positive for some values of x on [a, b] and negative
for others, then the definite integral
b y = f (x)
a
f ( x) dx
is the cumulative sum of the signed a B
areas between the graph of f (x) and A b
the x axis. Areas above the x axis are
positive, and areas below are negative.
In this section we want find the
(unsigned) actual area between a curve b

and the x axis or between two curves.  a

f ( x) dx = − A + B
This is never negative!
2
 Negative Values

The (unsigned) area between the

graph of a negative function and the
x axis is equal to the definite
integral of the negative of the y = f (x)
function.
a B
b
A=  a
[ − f ( x) ] dx A b c

c
B=  b
f ( x) dx

3
 Area Between Curve and x axis

▪ The area between f (x) and the x axis can be found as

follows:
▪ For f (x)  0 over [a, b] (i.e. f (x) is above the x axis):
b
Area =  a
f ( x) dx
▪ For f (x)  0 over [a, b] (i.e. f (x) is below the x axis):
b
Area =  a
[ − f ( x) ] dx

4
 Area Between Two Curves

Theorem 1. If f (x)  g(x) over the interval [a, b], then the
area bounded by y = f (x) and y = g(x) for a  x  b is given by

  f ( x) − g ( x) dx
b
A=
a

f (x)
A
g (x)
a b

5
 Example

Find the area bounded by

y = x2 – 1 and y = 3

Note the two curves intersect at –2 and 2, and y = 3 is the larger

function on –2  x  2.
2
A=  −2 
 − −1 ) dx
2
3 (x
2 32
= (3x – x / 3 + x) −2
3
=  10.67
3

6
 Application:
Income Distribution
The U.S. Bureau of the Census compiles
data on distribution of income among
families. This data can be fitted to a curve
using regression analysis. This curve is
called a Lorenz curve.
The variable x represents the cumulative
percentage of families at or below the given
income level. The variable y represents the
cumulative percentage of total family
income received.
If we have absolute equality of income (every family has the same
income), the Lorenz curve is y = x.
7
 Application
(continued)

If we have absolute inequality of income (one family has all

the income, the rest have none), the Lorenz curve is y(x) = 0
for x < 1, y(1) = 1.
The maximum possible area between the Lorenz curve and the
line y = x is ½, which occurs in the case of absolute inequality.
That is, the area between the Lorenz curve and the line
y = x is between 0 and ½.
The Gini Index is two times the area between the Lorenz
curve and the line y = x. It can take on values between 0 and 1.

8
 Application
(continued)

Gini Index of Income Concentration

If y = f (x) is the Lorenz curve, then

 x − f ( x) dx
1
Index of income concentration = 2
0

A measure of 0 indicates absolute equality. A measure of 1

indicates absolute inequality.

9
 Example

A country is planning changes in tax structure in order to

provide a more equitable distribution of income.
The two Lorenz curves are:
f (x) = x2.3 currently, and
g(x) = 0.4x + 0.6x2 proposed.
Will the proposed changes work?

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 Example
(continue)

Currently: Gini Index of income concentration =

1  x 2
x 3.3
 1
2  [ x − x ] dx = 2 
2.3
− | = 0.3939
0
 2 3.3  0
Future: Gini Index of income concentration =
1
2  0
[ x − (0.4 x + 0.6 x 2 ] dx

 0.6 x 2 0.6 x 3  1
= 2  − | = 0.20
 2 3  0
The Gini index is decreasing, so the future distribution will be
more equitable.
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 7.2. Applications in
Business/Economics

▪ Probability Density Functions

A probability density function must
satisfy:
1. f (x)  0 for all x
2. The area under the graph of f (x) is 1
3. If [c, d] is a subinterval then
d
Probability (c  x  d) = c
f ( x) dx

12
 Example

In a certain city, the daily use of water in hundreds of gallons

per household is a continuous random variable with
probability density function
f ( x) = .15 e −.15 x if x  0. Otherwise f ( x) = 0
Find the probability that a household chosen at random will
use between 300 and 600 gallons.
6
Probabilit y (3  x  6) =  .15 e − 0.15 x dx
3

− .15 x 6
=− e | 3
= - e – 0.9 + e - 0.45  0.23

13
 Insight

The probability that a household in the previous example uses

exactly 300 gallons is given by:
3
Probabilit y (3  x  3) =  .15 e − 0.15 x dx = 0
3

In fact, for any continuous random variable x with

probability density function f (x), the probability that x is
exactly equal to a constant c is equal to 0.

14
 Applications in
Business/Economics

▪ Continuous Income Stream

Total Income for a Continuous Income Stream:
If f (t) is the rate of flow of a continuous income stream,
the total income produced during the time period from t = a
to t = b is
b
Total income =  f (t ) dt
a

15
 Example

Find the total income produced by a continuous income

stream in the first 2 years if the rate of flow is
f (t) = 600 e 0.06t
2
Total income =  600 e 0.06t dt
0

= 10 ,000 e 0 .06t 2
0

= 10 ,000 (e0 .12 – 1 )

 $1,275

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 Applications in
Business/Economics

Future Value of a Continuous Income Stream

From previous work we are familiar with the continuous
compound interest formula

A = Pert
If f (t) is the rate of flow of a continuous income stream,
0  t  T, and if the income is continuously invested at a rate r
compounded continuously, the the future value FV at the end of
T years is given by
T T
 
r (T − t )
FV = f (t ) e dt = e rT
f (t ) e −r t dt
0 0

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 Example

Let’s continue the previous example where

f (t) = 600 e0.06 t
Find the future value in 2 years at a rate of 10%.
r = 0.10, T = 2, f (t) = 600 e 0.06t
T
FV = e  f (t ) e −r t dt
rT
0
2
=e  600 e 0.06t e − 0.10t dt
0.10 ( 2 )
0
2
= 600 e  e −0.04t dt
0.2
0

= (600) (1.22140) (1.92209) = 1,408.59

18
 Consumers’ Surplus

( x , p)

x
CS =  [ D( x) − p ]dx
0

19
Example

20
Producers’ Surplus

x
p = PS =  [ p − S ( x)]dx
0

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Example

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