Lecture Notes on Mathematics for Economists / 2024

CHAPTER FOUR
4. LIMIT
4.1. The concept of limit and rate of change
In its simplest interpretation a limit indicates how the output of a function behaves as the input is
changed. Hence, it helps to spot the patterns of the behavior. To understand the concept of limit
and to see the patterns in the relationship in detail let relate the input and output of a function
using tables and graphs. In-fact, these representations take a bit of work to set up, in later, we
will see other methods that can helps to evaluate a limit.
2
x −9
Suppose we have a rational function f ( x )= ; then, we can examine the behavior of this
x−3
function by constructing a table of values as:
x 2.8 2.9 2.99 2.999 3 3.001 3.01 3.1 3.2
Undefine
f(x) 5.8 5.9 5.99 5.999 6.001 6.01 6.1 6.2
d

The above table shows how the functions values change for different values of x; and as shown
in the table, this function is undefined at x = 3. So, it is impossible to find a function value there.
However, we can find function values near x = 3. The function values get closer and closer to 6
as x gets closer to 3. Mathematically, we say that the limit as x approaches 3 from the left is 6. A
limit represents the relationship between x and f (x) as x approaches some value. Hence, this
relationship is represented symbolically using the symbol lim as:
lim ¿
−¿
x→ 3 f ( x ) =6 ¿

This can be read as “the limit of f (x) as x approaches 3 from the left is 6.” The value of the limit
is determined by x values that are closer and closer to 3, not the value at x=3. In fact, later, we
will see the situations how to examine when we will use the value at a point to find the limit. In
general, however, the value of the limit as x approaches some value is not equal to the value of
2
x −9
the function at that x value. In the case of f ( x )= , the function is not even defined at x =3.
x−3
Moreover, based on the above table, we see that as x gets closer and closer to 3 on the right, f (x)
gets closer and closer to 6. This means that
lim ¿
+¿
x→ 3 f ( x )= 6 ¿

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 Lecture Notes on Mathematics for Economists / 2024

NB. For the existence of the limit of a function, the limits from the right and the left must agree.
Note: If the functional values f(x) of a function f draw closer to one and only one finite real
numbers L for all values of x as x draws closer to a from both sides, but does not equal a, L is
defined as the limit of f(x) as x approaches a and is written

lim f ( x )=L
x →a

Rules of limit
Using the definition of the limit,lim f (x ), we can derive many general laws of limits (limit
x →a

theorem), that help us to calculate (evaluate) limits quickly and easily. The following rules apply
to any functions f(x) and g(x) and also apply to left and right sided limits. Suppose that ‘c’ is a

constant and the limits lim f ( x ) and lim g (x) exist (i.e., if they are finite numbers). Then:
x→ a x →a

1. lim ⌈ f ( x ) + g( x)⌉=lim f ( x )+ lim g(x ); Which means the limit of a sum is the sum of the
x →a x→ a x→a

limits.

2. lim ⌈ f ( x ) −g (x)⌉=lim f ( x )−lim g(x ); Which means; the limit of a difference is the
x →a x→a x→a

difference of the limits.

3. lim [cf ( x ) ]=c lim f (x ); Which means, the limit of a constant times a function is the
x →a x→ a

constant times the limit of the function.

4. lim ⌈ f ( x )∗g(x )⌉=lim f ( x )∗lim g(x ); Which means; the limit of a product is the product
x →a x→a x→ a

of the limits.
lim f (x)
f (x )
5. lim ⌈ ⌉= x → a if lim g(x )≠ 0; Which means, the limit of a quotient is the
x →a g(x ) lim g(x ) x →a
x→ a

quotient of the limits provided that the limit of the denominator is not 0.

Note: If lim g ( x )=¿ 0 ¿ and lim f ( x )=b ; where b is a finite number with b≠ 0; then:
x →a x →a

f (x )
 The values of the quotient can be made arbitrarily large in absolute value as x →
g (x)
a and thus the limit does not exist.

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 Lecture Notes on Mathematics for Economists / 2024

f (x )
 If the values of the quotient are positive as x → a in the above situation, then
g (x)
f (x )
lim ⌈ ⌉=∞
x →a g(x )
f (x )
 If the values of the quotient are negative as x → a in the above situation, then l
g (x)
f (x )
lim ⌈ ⌉=−∞
x →a g(x )

 If on the other hand, if lim g ( x )=¿ 0=lim f ( x ) ¿, we cannot make any conclusions
x →a x →a

about the limit.

[ ]
n n
6. lim [ f ( x )] = lim f (x) , where n is a positive integer.
x →a x→a

7. lim
x →a
c=c , where ‘c’ is a constant

8. lim
x →a
x=a

n n
9. lim x =a , where n is a positive integer. (This follows from rules 6 and 8)
x →a

10. lim √ x= √ a, where n is a positive integer and a > 0 if n is even.

n n

x →a

√ √
n
11. lim f (x )= n lim f (x ), assuming that the lim f ( x ) >0 if n is even
x →a x→ a x →a

4.2. Evaluation of limits and Rate of change and slope of tangent Lines

Limit Rule Examples: Find the following limits using the above limit rules:

lim 9 =9
a) x →5

lim x 2 =( 6 )2 =36
b) x →6

lim 2 x 3=2 lim x 3 =2( 3)3 =54

c) x →3 x →3

lim ( x 4 +3 x )=lim x 4 +3 lim x=(2 )4 +3( 2 )=22

d) x →2 x→ 2 x →2

lim [ ( x +8 ) ( x−5 ) ] =lim ( x+ 8)×lim ( x−5 )=( 4+ 8)( 4−5 )=−12

e) x →4 x→4 x→ 4

We will now use the concept of limit to solve some of the problems of calculus. Before pursuing
with these problems, we digress for a moment to introduce the concept of increments.

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Let f ( x )= y
If x changes from x1 to x2, then y changes from f(x1) to f(x2). Mathematically, the change in x and
the corresponding change in y, called increments in x and y, respectively, are denoted by δx or
∆x, and δy or ∆y.
That is,
x 2 − x1 = Δx
x 2 = Δx + x 1
f ( x 2 )−f ( x 1 )=Δy
f ( Δx + x 1 )= Δy+ f ( x1 )
The concept of coordinate geometry tells us that a tangent to a circle is a line that passes through
one and only one point on the circle. But, how do we define and find a tangent line to graph of a
function at a point?

Rise f ( x 2 )−f ( x1 ) f ( Δx + x 1 )−f (x 1 ) Δy

Slope of the sec ant line= = = =
Run x 2 −x 1 Δx Δx
As we let δx tend to 0, the secant line approaches the tangent line. Thus, the slope of the tangent
line becomes.

f ( Δx + x 1 )−f ( x 1 )
m= lim
Δx→ 0 Δx
2
Example: Given f ( x )=x , find the slope and equation of the tangent line to f ( x ) at x=1 .

Solution

f ( x )=x 2
f (1)=1
f (1+ Δx )=( Δx+1)2 =Δx 2 +2 Δx+1

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 Lecture Notes on Mathematics for Economists / 2024

f ( Δx+ x 1 )−f ( x 1 )
Slope of the tan gent line= lim
Δx→0 Δx
2
( Δx ) +2( Δx )+1−1
= lim
Δx→ 0 Δx
= lim Δx+2=2
Δx→ 0

To find equation of the tangent line use

y=mx+b
y=2 x +b
1=2+b
b=−1

Thus, the equation of the tangent line is y=2 x−1

Average and instantaneous rates of change

The slope of the tangent line is also called the instantaneous rate of change and the slope of a
secant line is known as the average rate of change.

f ( Δx + x 1 )−f ( x 1 )
Ins tantan eous rate of change= lim
Δx →0 Δx

f ( Δx+ x 1 )−f ( x 1 )
Average rate of change =
Δx

The value of the average rate of change is also known as the difference quotient.

Given f ( x )=1000−2 x 2
Example: , find

a. The average rate of f ( x ) when x increases from 40 to 50

b. Find the rate of change of f ( x ) at x=50
Solution

a . f ( 40)=1000−2( 40)2 =−2 , 200

f (50)=1000−2(50 )2=−4 , 000
Δy f (50)−f (40 ) −4000−(−2200 )
= = =−180
Δx 50−40 10

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 Lecture Notes on Mathematics for Economists / 2024

Interpretation: For x between 40 and 50, for a unit increase in x, on average, brings a decrease
of y by 180.

b. The give value of x=50

f ( Δx+ x )−f ( x )
Ins tantan eous rate of change= lim
Δx →0 Δx

f ( x )=1000−2 x 2 f ( x +Δx )=1000−2( x+ Δx)2 =1000−2 x 2 −4 xΔx−2( Δx )2

f ( x+ Δx)−f ( x )=1000−2 x 2 −4 xΔx−2 xΔx−2( Δx )2 −1000+2 x2

f ( x+ Δx)−f ( x )
=−4 x−2 Δx
Δx
f ( x + Δx )−f ( x )
lim =−4 x
Δx→0 Δx

So at x = 50, the instantaneous rate of change becomes -4x = -200.

Interpretation: When x changes by a number closer to zero from 50, y decreases at a rate 200

for unit x. for example if Δx=2 % , Δy=[ 2 % ]× [−200 ] =−4

N.B, The rate of change between two points is average rate of change and at a point is
instantaneous rate of change.
2
Example: Revenue of X- company R( x )=30 x +0 . 1 x , find

a. Average rate of change in revenue when x increases from 10 to 20 units

b. Marginal revenue at x = 50

Solution

R (20)−R (10) 640−310

a . Average rate of change = = =33
20−10 10

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 Lecture Notes on Mathematics for Economists / 2024

R ( x+ Δx)−R ( x )
b . MR ( x )= lim
Δx→0 Δx
1 1 1 1
30 x +30 Δx+ x 2 + xΔx+ ( Δx )2−30 x− ( Δx )2
10 5 10 10
= lim
Δx→0 Δx
1 1
30 Δx+ xΔx+ ( Δx )2
5 10
= lim
Δx→ 0 Δx
1 1
=lim 30+ x+ Δx
5 10
1
=30+ x
5
1
MR ( x )=20−30+ ( 20 )=34
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