Chapter IV

Relations and Functions

Ordered Pairs:
• In writing a set {a, b}, we do not care
about the order in which the elements a
and b appear, because, by definition {a, b}
= {b, a}. The pair of elements a and b is in
this case an unordered pair.
• When the ordering of a and b does carry
a significance, we can write two different
ordered pairs denoted by (a, b) and (b, a),
which have the property that (a, b) ≠ (b, a)
unless a = b. 2

1
 • Similarly, we can distinguish between ordered
and unordered triples, quadruples, quintuples,
and so forth.
• Ordered pairs, triples, etc., collectively can be
called ordered sets.
• Ordered pairs, like other objects, can be
elements of set S.
• Consider the rectangular (cartesian coordinate
plane) where an x axis and a y axis cross
each other at a right angle, dividing the plane
into four quadrants.
3

• The xy plane is an infinite set of points, each of

which represents an ordered pair whose first
element is an x value and the second element a y
value. Clearly, the point labeled (4, 2) is different
from the point (2, 4); thus ordering is significant
here.
• Suppose, from two given sets, x = {1, 2} and y =
{3, 4}, we wish to form all the possible ordered
pairs with the first element taken from set x and the
second element taken from set y. The result will, of
course, be the set of four ordered pairs (1,3), (1,
4), (2, 3), and (2, 4). This set is called the cartesian
product or direct product of the set x and y and is
denoted by x X y (x cross y). 4

2
• While x and y are sets of numbers, the
cartesian product turns out to be a set of
ordered pairs. By enumeration, or by
description, we may express the cartesian
product alternatively as
x X y = {(1, 3), (1, 4), (2, 3), (2, 4)}
or x X y = {(a, b) | a ε x and b ε y}
• Let x and y include all the real numbers. Then
the cartesian product
x X y = {(a, b) | a ε R and b ε R} ……….(1)
will represent the set of all ordered pairs with
real-valued elements. 5

• Each ordered pair corresponds to unique point

in the cartesian coordinate plane and,
conversely, each point in the coordinate plane
also corresponds to a unique ordered pair in the
set x X y.
• In view of this double uniqueness, a one-to-one
correspondence is said to exist between the set
of ordered pairs in the cartesian product and
the set of points in the rectangular coordinate
plane.
• Another way of expressing the set x X y in (1) is
to write it directly as R X R; this is also
commonly denoted by R2. 6

3
• We may also define the cartesian product of
three sets x, y, and z as follows:
x X y X z = {(a, b, c)| a ε x, b ε y, c ε z}
Which is a set of ordered triples.
• If the sets x, y and z each consist of all the real
numbers, the cartesian product will correspond
to the set of points in a three dimensional
space. This may be denoted by R X R X R, or
more simply, R3.
• In this way, we can have R2, or R3,……, or Rn.

Relation:

• Since any ordered pair associates a y

value with an x value, any collection of
ordered pairs – any subset of the
cartesian product (1) – will constitute a
relation between y and x.
• Given an x value, one or more y values
will be specified by that relation.

4
 Example 1:
The set {(x, y) | y = 2x} is a set of ordered pairs
including for example, (1, 2), (0, 0), and (-1, -
2). It constitutes a relation, and its graphical
counterpart is the set of points lying on the
straight line y = 2x (see Fig. 1).
Example 2:
The set {(x, y) | y ≤ x}, which consists of such
ordered pairs as (1, 0), (1, 1), and (1, -4),
constitutes another relation (see Fig. 1).

• When the x value is given, it may not be always

possible to determine a unique y value from a
relation.
• In Example 2, the three exemplary ordered
pairs show that if x = 1, y can take various
values, such as 0, 1, or -4, and yet in each case
satisfy the stated relation.
• A relation may be such that for each x value
there exists only one corresponding y value.
• The relation in Example 1 indicates that y is
said to be a function of x, and this is denoted by
y = f(x). 10

5
Function:
• A function is a set of ordered pairs with the
property that any x value uniquely
determines a y value.
• Although the definition of a function
stipulates a unique y for each x, the
converse is not required. In other words,
more than x value may legitimately be
associated with the same y value (Fig. 2).
• A function must be a relation, but a relation
may not be a function.
11

• A function is also called a mapping, or

transformation.

• In the statement y = f (x), the functional

notation f may be interpreted to mean a
rule by which the set x is
“mapped”(“ transformed ”) into the set y.

We may write f: x y

12

6
 y x=a y = 2x y=x

O
a x
y≤x

Fig. 1 13

y = f (x)

y0

00 x
x1 x2
Fig. 2 14

7
 y

y2 ( x2, y2 )

f y1 ( x1, y1 )
f

x1 x2 y1 y2 0 x
x1 x2
x
( Domain) ( Range)
Fig. 3b

Fig. 3a

15

• Since f represents a particular rule of mapping, a

different functional notation must be employed to
denote another function that may appear in the
same model.
• The customary symbols (besides f) used for the
above purpose are g, F, G, the Greek letters 1
(phi), ψ (psi), and their capitals, Φ and Ψ.
• It is permissible to write y = y (x) and z = z (x).
• In the function y = f(x), x is referred to as the
argument of the function, y is called the value of
the function. We shall also alternatively refer to x
as the independent variable and y as the
dependent variable. 16

8
 Domain and Range of the Function
• The set of all permissible values that x can
take in a given context is known as the domain
of the function, which may be a subset of the
set of real numbers.
• The y value into which an x value is mapped is
called the image of that x value. The set of all
images is called the range of the function,
which is the set of all values that the y variable
will take.
• The domain pertains to the independent
variable x, and the range has to do with the
dependent variable y. 17

Example 1: The total cost C of a firm per day is a

function of its daily output Q: C = 150 + 7Q. The
firm has a capacity limit of 100 units of output
per day. What are the domain and the range of
the cost function?
Class Assignments:
1.If the domain of the function y = 5 + 3x is the
set {x | 1 ≤ x ≤ 4}, find the range of the function
and express it as a set.
2.For the function y = - x2, if the domain is the of
all nonnegative real numbers, what will its
range be? 18

9
 Types of Function
Constant Function:
• A function whose range consists of
only one element is called a constant
function.
As an example, we cite the function
y = f (x) = 7
Which is alternatively expressible as y
= 7 or f (x) = 7. In the coordinate
plane, such a function will appear as a
horizontal straight line. 19

P
(Price)

3.50
P = $ 3.50

O Q
(Bushels of Wheat)

Figure: The constant demand function P = $ 3.50

20

10
Polynomial Function:
• The constant function is a “degenerate”
case of what are known as polynomial
functions.
• The word “polynomial” means
“multiterm”, and a polynomial function of
a single variable x has the general form
y = a0 + a1x + a2x2 + … +anxn
in which each term contains a coefficient
as well as a nonnegative-integer power of
the variable x.
21

• Depending on the value of the integer n

(which specifies the highest power of x),
we have several subclasses of polynomial
function:
Case of n = 0: y = a0 [constant function]
Case of n=1: y=a0+a1x [linear function]
Case of n=2: y=a0+a1x+a2x2[quadratic
function]
Case of n=3: a0+a1x+a2x2+a3x3 [cubic
function]
and so forth.
22

11
• The superscript indicators of the powers
of x are called exponents. The highest
power involved, i.e., the value of n, is
called the degree of the polynomial
function; a quadratic function, for
instance, is a second-degree polynomial,
and a cubic function is a third-degree
polynomial.
• When plotted in the coordinate plane, a
linear function will appear as a straight
line. When x = 0, the linear function
yields y = a0; thus the ordered pair (0,
a0) is on the line. 23

• The coefficient a1 measures the slope

(the steepness of incline) of the line.
This means that a unit increase x will
result in an increment in y in the
amount of a1.
• When a1>0, there is positive slope and
an upward-sloping line; if a1<0, the line
will be down-ward sloping line.
• A quadratic function, on the other hand,
plots as a parabola – roughly, a curve
with a single built-in bump or wiggle.
• The graph of a cubic function will, in
general, manifest two wiggles. 24

12
Linear Functions:
Example 1
• Assume that transportation costs for a small
delivery truck (Y = transportation cost) are
dependent on the mileage traveled by the truck
(X = mileage).
• The specific function is
Y = 54 + 1.29X (General form is Y = a0 + a1X)
Where Y is measured in dollars and X is
measured in miles.
25

Y = 54 + 1.29X
Y = transportation cost

54

X
O
X = mileage

26

13
• In this function, a0 = $54, indicating that
transportation costs are $54 whether or not the
delivery truck is in operation. This dollar amount
represents those elements of transportation cost
not explained by mileage, such as license fees and
a part of depreciation.
• The slope of the line, a1, measures the change in
transportation cost (in dollars) in response to a 1-
mile change in miles traveled.
• Since a1 = $1.29, transportation costs increase
$1.29 for each additional mile traveled. Similarly,
for each 1-mile reduction, transportation costs
decrease by $1.29. The same relationship applies
regardless of the miles traveled by the truck.
27

Example 2
• The total cost of manufacturing a product can be
expressed as a linear function of the quantity
produced.
• As total costs include fixed costs (such as rent,
property taxes, and interest payments) and
variable costs (such as wages, raw materials, etc.),
the following notation can be used for the linear
function given below:
TC = F + VQ
Where TC = total cost for given number of units
produced
28

14
 F = fixed cost
V = variable cost per unit
Q = number of units produced
• Fixed costs are incurred regardless of output
level. Variable costs change as output changes.
• Total cost is a linear function of output Q where
fixed costs represent the Y intercept a0 and the
variable cost corresponding to a unit change in
output a1, or the slope.
• The total cost of producing light bulbs can be
expressed as the linear function 29

TC = $5500 + 0.14Q
• Fixed costs of $5500 must be paid by the firm
at all levels of output including the point of zero
production.
• Each additional light bulb adds $0.14 to total
cost, representing the variable cost per light
bulb produced.
• Total cost of producing 10, 000 light bulbs for
the firm is $6900, which is shown below:
TC = $5500 + (0.14)(10,000)
= $5500 + 1400 = $6900 30

15
• The above function shows a direct relation
between the quantity produced and total cost,
i.e., as quantity increases, total cost increases,
and as quantity decreases, total cost of output
decreases.

31

Class Assignment 1:
A firm assumes that its new shaving cream will be
sold at the constant retail price of $1.89 per unit.
Find the function expressing total revenue from the
sale of this new shaving cream. Draw this total
revenue function in quadrant I of the coordinate
axis.
Class Assignment 2:
A city newspaper has a fixed cost per daily printing
of $7000 and a variable cost per copy printed of
$0.12. State the total cost function for a daily
printing of this newspaper. What is the total cost of
a daily printing of 25,000 copies? 32

16
Quadratic Functions:
• Quadratic functions have the form
Y = b0 + b1X + b2X2
where b0, b1 and b2 are constants and b2 is not
equal to zero.
• When graphed on the coordinate axis, a
quadratic function is a vertical parabola.
• A vertical parabola is characterized by one
turning point where the function changes
direction either from increasing to decreasing
or from decreasing to increasing. 33

• The turning point is called the vertex. The

vertex is either a maximum (Fig. a) or
minimum (Fig. b).
Y
Y

O X O X
Fig. a Fig. b

• If b2 is less than zero, the vertical parabola will

appear as in Fig. a (concave downward).
34

17
• If b2 is greater than zero, the vertical parabola
will appear as in Fig. b (concave upward).
• The X coordinate point of the vertex is found
by setting X equal to -b1/2b2.
• Substitution of the resulting X value into the
quadratic function yields the value of Y and,
therefore, the coordinates of the vertex.
Example 1
• The demand for televisions sold by a chain of
retail outlets is expressed by the linear
equation where price is a function of the
quantity sold. 35

P = 720 – 0.09Q
with P = price in dollars and Q = quantity of
televisions demanded.
• Total revenue (TR) = price (P) . quantity (Q)
P.Q = (720 – 0.09Q)Q = 720Q – 0.09Q2
• The above equation is a quadratic total revenue
function with b0 = 0.
• In the expression, b2 is negative, indicating that
the function is concave downward.
• The X coordinate (or quantity consumed) at the
vertex is X = -b1/2b2 = (-720)/2(-0.09) = 400036

18
• X or the quantity of televisions corresponding
to maximum total revenue, is equal to
Q = X = 4000
• The firm will achieve maximum total revenue
by selling 4000 televisions.
• The total revenue corresponding to this
quantity is: TR = 720Q – 0.09Q2
720(4000) – 0.09(4000)2 = $1, 440, 000
• The maximum point of the total revenue
function specifies a total revenue of $1,440,000
and a quantity of 4000 televisions. 37

• To determine the price corresponding to this

quantity, Q = 4000 is substituted into the
demand function as follows:
P = 720 – 0.09(4000) = $360
• Analysis of the above quadratic function has
shown that the retailer will be able to achieve a
maximum total revenue of $1,440,000 by
selling 4000 televisions at a price of $360 per
television.

38

19
Class Assignment 3:
• For the following demand function for shirts
where price (in dollars) is a function of the
quantity demanded:
P = 36 – 0.06Q
a.Find the total revenue function for shirts.
b.Find the vertex of the total revenue function.
c.Show that this point represents maximum total
revenue.
d.What is the price charged for shirts at the
vertex of the total revenue function? 39

Class Assignment 4:
Given the following average cost (per unit cost)
function for the production of programmable
calculators:
Average cost per unit = 0.06Q2 – 84Q + 30,000
a.Find the quantity at the vertex of the average-
cost-per-unit function.
b.Find the average cost per unit at the vertex.
c.Is this vertex a maximum point or a minimum
point? Why?
40

20
Cubic Functions:
• It is the polynomial of degree 3 with one
independent variable.
• The form of the cubic function is
Y = b0 + b1X + b2X2 + b3X3
where b3 is not equal to zero.
• A definitive statement about the shape of all cubic
functions is not possible.
• Often, however, a cubic function has two turning
points.
• Many cubic functions include a segment which is
concave downward and a segment which is
concave upward. 41

Example 1
• The law of diminishing returns states that when
units of a variable factor (e.g., labor) are added
to a fixed factor (e.g., land), the output
resulting from additional units of labor first
increases at an increasing rate, then increases
at a decreasing rate, and finally decreases.
• The function used to express this law is
referred to as a production function.
• In the present case, production function
specifies the relation between output and the
use of the variable factor. 42

21
 Total Production

Y = Output
Y = b0 + b1X + b2X2 + b3X3

X = Input
• Operation of the law of diminishing returns causes the
typical production function to be cubic as there is (1) a
concave upward segment where returns to the
variable factor are increasing at an increasing rate and
(2) a concave downward segment where returns to
the variable factor are first increasing at a decreasing
rate and then decreasing. 43

• In the production function, b0 often equals 0 as

output is not possible without the application of
at least some of the variable input.

44

22
Example 2
• The total cost function, expressing total cost as
a function of a firm’s output, frequently is
cubic.
• In the present case, there is a concave
downward segment followed by a concave
upward segment.
• The total cost of production is related to
returns from the use of variable factors.
• In general, if returns from a factor are
increasing at an increasing rate, total costs of
production are increasing at a decreasing rate.
45

• And if factor returns are increasing at a

decreasing rate or decreasing, total costs of
production are increasing at an increasing rate.
• A cubic total cost function has the functional
form Y = b0 + b1X + b2X2 + b3X3
where Y = total cost
X = quantity of output
b3 ≠ 0

46

23
 Total cost:
Y = b0 + b1X + b2X2 + b3X3
Y = Total cost

b0

X = Output
• The above graph shows that as output increases,
costs increase at a decreasing rate and,
subsequently, increase at an increasing rate as
diminishing returns to the variable factor occur.
Thus, a concave downward segment follows a
concave upward segment of the curve as output
increases. 47

• In the equation for total cost, b0 represents fixed

costs or those costs which do not vary with
output.
Class Assignment 5:
In the total cost equation, where cost is a function
of the quantity produced C(Q):
C(Q) = -0.2Q3 + 0.03Q2 + 2Q + 1500
1.What cost component is represented by the
constant 1500?
2.Why are there both concave upward and
concave downward segments on a typical total
cost curve? 48

24
Rational Functions:
A function such as
y = (x -1) / (x2 + 2x + 4)
In which y is expressed as a ratio of two
polynomials in the variable x, is known
as a rational function. According to this
definition, any polynomial function must
itself be a rational function, because it
can always be expressed as a ratio to 1,
which is a constant function.
49

• A special rational function that has

interesting applications in business/
economics is the function
y = a/x or xy = a
Which plots as a rectangular hyperbola.
• This function may be used to represent
that special demand curve – with price P
and quantity Q on the two axes – for
which the total expenditure PQ is
constant at all levels of price. Such a
demand curve is the one with a unitary
elasticity at each point on the curve.
50

25
• Another application is to the average
fixed cost (AFC) curve. With AFC on
one axis and output on the other,
the AFC must be rectangular-
hyperbolic because AFC X Q (= total
fixed cost) is a fixed constant.
• The rectangular hyperbola drawn
from xy = a never meets the axes.
The curve approaches the axes
asymptotically. The axes constitute
the asymptotes of this function.
51

y
Linear
y= a0+a1 x

Slope = a1

a0
x
o

y
y= a0+a1 x +a2x2 Quadratic

( Case of a2 ‹ 0 )

a0

0 x 52

26
 y y= a0+a1 x +a2x2 + a3x3

Cubic

a0
x
o

Rectangular-hyperbolic
y=a/x

(a>0)

o x 53

y
y

Exponential
y = bx Logarithmic

y = logb x

(b> 1)

0 x 0 x

54

27
Algebraic Functions:
• Any function expressed in terms of
polynomials and/or roots (such as square
root) of polynomials is an algebraic
function. Accordingly, the functions
discussed far are all algebraic. A function
such as y = x2+3 is not rational, yet it is
algebraic.
Nonalgebraic Functions:
• Exponential functions such as y = bx, in
which the independent variable appears
in the exponent, are nonalgebraic. 55

y = 4x y = 2x
y = 6x

(0, 1)

Fig. Exponential function where the value of b is greater than one.

56

28
• In the above figure, for each of the functions,
the value of the function y approaches the X
axis as x approaches -∞. This indicates y
approaches 0, but never equals it, as x
decreases.
• The exponential function y = bx when b is
greater than 1 is asymptotic to the X axis as x
approaches -∞.
• y is continually increasing for increasing values
of x. So, y = bx when b is greater than 1 is a
monotonically increasing function of x.
57

• For example, automobile sales may rise

continually as national employment increases.
So, automobile sales are a monotonically
increasing function of national employment.

58

29
• The closely related logarithmic
functions, such as y = logbx, are
also nonalgebraic.
• Nonalgebraic functions are also
known as transcendental functions.

59

Functions of Two or More Independent Variables

• The concept of a function can be readily
extended to the case of two or more
independent variables. Given a function
z = g (x, y)
a given pair of x and y values will
uniquely determine a value of the
dependent variable z. Such a function is
exemplified by
z = ax + by or z = a0 + a1x + a2x2 + b1y
+ b2y2 60

30
• Just as the function y = f(x) maps a point in
the domain into a point in the range, the
function g will do precisely the same. The
domain is in this case a set of ordered pairs (x,
y), because we can determine z only when
both x and y are specified.
• The function g is a mapping from a point in a
two-dimensional space into a point on a line
segment (i. e., a point in a one-dimensional
space), such as from the point (x1, y1) into the
point z1 or from (x2, y2) into z2.

61

• The domain of the function will be some subset

of the points in the xy plane, and the value of
the function (value of z) for a given point in the
domain – say (x1, y1) – can be indicated by the
height of a vertical line planted on that point.
• The association between the three variables is
summarized by the ordered triple (x1, y1, z1),
which is a specific point in the three-
dimensional space.
• The function y = f(x) is a set of ordered pairs,
the function z = g(x, y) will be a set of ordered
triples.
62

31
• Suppose that output is determined by the
amounts of capital (K) and labor (L) employed;
then we can write a production function in the
general form Q = Q (K, L).
• With the function y = h (u, v, w), for example,
we can map a point in the three dimensional
space, (u1, v1, w1), into a point in one-
dimensional space (y1).
• Such a function might be used to indicate that a
consumer’s utility is a function of his
consumption of three different commodities, and
the mapping is from a three-dimensional
commodity space into a one-dimensional utility
space. 63

y g
z

g
z1
Y1 (x1 , y 1 )

z2
Y2 (x2 , y 2 )

0 x
x1 x2

64

32
 z
(x1, y1, z1)

(x2, y2, z2)

y1

y2

x1
x2
x

65

• The ordered quadruple (u1, v1, w1, y1) is a

“point” in the four-dimensional space. The locus
of such points will give the (nongraphable)
graph of the function y = h (u, v, w), which is
hypersurface.
• These terms, viz., point and hypersurface, are
carried over to the general case of the n-
dimensional space.
• Functions of more than one variable can be
classified into various types. For instance, a
function of the form
y = a1x1 + a2x2 +…+ anxn is a linear function.
66

33