Differential Calculus for Social Science 201-103 • CEGEP, Montreal

Corrected exercises: related rates (201-103)

These ten corrected exercises are about related rates: quantities that depend on one another and, both of them, on time. In Social Science, these quantities are almost always the two terms of a ratio: unemployed over labour force, inhabitants over square kilometres, payroll over headcount.

Exercise 0.1 opens the set with ten relations to differentiate directly with respect to time, as in the textbook lists: a weighted sum, a polynomial and 12x\frac{12}{x}, a two-link chain rule, the product x2yx^{2}y and the quotient xy2\frac{x}{y^{2}}, the implicit relation x2+y2=169x^{2}+y^{2}=169, the root x2+y2\sqrt{x^{2}+y^{2}}, a logarithm, and the relative rate of a product of powers x2y3x^{2}y^{3}, each with the rate to find, checked as you type it.

The thread of the set fits in one sentence: an indicator that is a QUOTIENT never says which of its two terms has moved. Differential calculus does, and that is what separates reading numbers from analysing them.

Three pitfalls are named explicitly: substituting the values before differentiating, which always gives zero; forgetting the factor that comes from the chain rule; and concluding from a rise in the numerator that the quotient rises.

11 corrected exercises • 110 points • 150 minutes

This chapter is part of 201-103, every chapter with its set and sheet Before you start Revision sheet: the traps and the method for this chapter

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Course recap

  • • The FIVE STEPS: name the variables that depend on time, write the relation, differentiate with respect to time, substitute, conclude with the units.
  • • Differentiate the RELATION, then substitute. A value substituted too early becomes a constant, and its derivative is zero.
  • • Every differentiation with respect to time of a quantity that is not tt brings out a chain-rule factor: ddt(n2)=2n dndt\dfrac{d}{dt}\bigl(n^{2}\bigr)=2n\,\dfrac{dn}{dt}.
  • • Product: dzdt=dxdt y+x dydt\dfrac{dz}{dt}=\dfrac{dx}{dt}\,y+x\,\dfrac{dy}{dt}. Quotient: dzdt=x′y−xy′y2\dfrac{dz}{dt}=\dfrac{x'y-xy'}{y^{2}}.
  • • RELATIVE RATES: (xy)′xy=x′x+y′y\dfrac{(xy)'}{xy}=\dfrac{x'}{x}+\dfrac{y'}{y} and (x/y)′x/y=x′x−y′y\dfrac{(x/y)'}{x/y}=\dfrac{x'}{x}-\dfrac{y'}{y}. This is the shortest route on an indicator.
  • • A quotient increases if and only if x′x>y′y\dfrac{x'}{x}>\dfrac{y'}{y}: it is the order of the PERCENTAGES that decides, never that of the absolute values.
  • • A stock is differentiated into its flows: dPdt=B−D+M\dfrac{dP}{dt}=B-D+M, births minus deaths plus net migration.
  • • A crude rate 1,000BP\dfrac{1{,}000B}{P} falls as soon as PP grows, even with BB constant: the denominator alone is enough to move the indicator.
  • • Chain of several links: dWdt=dWdρ×dρdc×dcdt\dfrac{dW}{dt}=\dfrac{dW}{d\rho}\times\dfrac{d\rho}{dc}\times\dfrac{dc}{dt}, and the intermediate units cancel.
  • • The payoff of an investment depends on where you are on the curve: 1(1−ρ)2\dfrac{1}{(1-\rho)^{2}} equals 4 at 50% utilization and about 62 at 87.3%.
  • • Units are the final check: days per week, dollars per year, people per square kilometre per year, percentage points per year.
  • • dAdt\dfrac{dA}{dt} and dAdr\dfrac{dA}{dr} are not measured in the same unit: the unit depends on the variable of differentiation.
  • • An unemployment rate is always read together with the participation rate: the first alone cannot tell a job found from a search abandoned.

Calculations: the rates to compute

Exercise 0.1: Differentiating a relation with respect to time: ten direct calculations

In each relation, every quantity depends on time tt. Differentiate the relation with respect to tt, then substitute the values and rates given to obtain the rate asked for.

Three steps, always in this order: differentiate both sides with respect to tt, writing the factor dxdt\frac{dx}{dt} or dydt\frac{dy}{dt} each time you differentiate an expression in xx or in yy, with the product or quotient rule as soon as two varying quantities meet; ONLY THEN substitute the values of the instant; solve for the rate you want.

  • a) z=4x+7yz=4x+7y, with dxdt=2.5\frac{dx}{dt}=2.5 and dydt=−1.5\frac{dy}{dt}=-1.5: compute dzdt\frac{dz}{dt}.
  • b) y=2x3−5xy=2x^{3}-5x, with x=2x=2 and dxdt=4\frac{dx}{dt}=4: compute dydt\frac{dy}{dt}.
  • c) y=12xy=\frac{12}{x}, with x=4x=4 and dxdt=−3\frac{dx}{dt}=-3: compute dydt\frac{dy}{dt}.
  • d) y=u3+2uy=u^{3}+2u and u=t2+1u=t^{2}+1: compute dydt\frac{dy}{dt} at t=1t=1.
  • e) z=x2yz=x^{2}y, with x=3x=3, y=5y=5, dxdt=2\frac{dx}{dt}=2 and dydt=−1\frac{dy}{dt}=-1: compute dzdt\frac{dz}{dt}.
  • f) z=xy2z=\frac{x}{y^{2}}, with x=8x=8, y=2y=2, dxdt=3\frac{dx}{dt}=3 and dydt=0.5\frac{dy}{dt}=0.5: compute dzdt\frac{dz}{dt}.
  • g) x2+y2=169x^{2}+y^{2}=169, at the point (5,12)(5, 12), with dxdt=6\frac{dx}{dt}=6: compute dydt\frac{dy}{dt}.
  • h) z=x2+y2z=\sqrt{x^{2}+y^{2}}, with x=6x=6, y=8y=8, dxdt=3\frac{dx}{dt}=3 and dydt=−2\frac{dy}{dt}=-2: compute dzdt\frac{dz}{dt}.
  • i) y=ln⁡(x2+1)y=\ln(x^{2}+1), with x=3x=3 and dxdt=−2\frac{dx}{dt}=-2: compute dydt\frac{dy}{dt}.
  • j) z=x2y3z=x^{2}y^{3}, where xx grows by 1.51.5% per year and yy shrinks by 0.80.8% per year: compute the relative rate 1zdzdt\frac{1}{z}\frac{dz}{dt}, in percent per year.

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  • a) dzdt=4dxdt+7dydt\frac{dz}{dt}=4\frac{dx}{dt}+7\frac{dy}{dt}; −0.5-0.5
  • b) dydt=(6x2−5)dxdt\frac{dy}{dt}=(6x^{2}-5)\frac{dx}{dt}; 7676
  • c) dydt=−12x2dxdt\frac{dy}{dt}=-\frac{12}{x^{2}}\frac{dx}{dt}; 2.252.25
  • d) dydt=(3u2+2)⋅2t\frac{dy}{dt}=(3u^{2}+2)\cdot 2t; 2828
  • e) dzdt=2xydxdt+x2dydt\frac{dz}{dt}=2xy\frac{dx}{dt}+x^{2}\frac{dy}{dt}; 5151
  • f) dzdt=1y2dxdt−2xy3dydt\frac{dz}{dt}=\frac{1}{y^{2}}\frac{dx}{dt}-\frac{2x}{y^{3}}\frac{dy}{dt}; −0.25-0.25
  • g) dydt=−xydxdt\frac{dy}{dt}=-\frac{x}{y}\frac{dx}{dt}; −2.5-2.5
  • h) dzdt=xdxdt+ydydtx2+y2\frac{dz}{dt}=\frac{x\frac{dx}{dt}+y\frac{dy}{dt}}{\sqrt{x^{2}+y^{2}}}; 0.20.2
  • i) dydt=2xx2+1dxdt\frac{dy}{dt}=\frac{2x}{x^{2}+1}\frac{dx}{dt}; −1.2-1.2
  • j) z′z=2x′x+3y′y\frac{z'}{z}=2\frac{x'}{x}+3\frac{y'}{y}; 0.60.6% per year

The move that decides everything: DIFFERENTIATE BEFORE SUBSTITUTING. A value substituted too early freezes a quantity into a constant, and its derivative disappears; every quantity must remain a function of tt until the relation between the rates has been written.

a)

The coefficients are constant: dzdt=4dxdt+7dydt=4×2.5+7×(−1.5)=10−10.5=−0.5\frac{dz}{dt}=4\frac{dx}{dt}+7\frac{dy}{dt}=4\times 2.5+7\times(-1.5)=10-10.5=-0.5. zz decreases even though xx grows.

b)

dydt=(6x2−5)dxdt\frac{dy}{dt}=(6x^{2}-5)\frac{dx}{dt}. At x=2x=2: 6×4−5=196\times 4-5=19, so dydt=19×4=76\frac{dy}{dt}=19\times 4=76. Pitfall: substituting x=2x=2 before differentiating, which gives y=6y=6, a constant, and dydt=0\frac{dy}{dt}=0.

c)

y=12x−1y=12x^{-1}, so dydt=−12x2dxdt\frac{dy}{dt}=-\frac{12}{x^{2}}\frac{dx}{dt}. At x=4x=4: dydt=−1216×(−3)=2.25\frac{dy}{dt}=-\frac{12}{16}\times(-3)=2.25. The two minus signs cancel: xx decreases, so yy increases.

d)

Two-link chain rule: dydt=dydu⋅dudt=(3u2+2)⋅2t\frac{dy}{dt}=\frac{dy}{du}\cdot\frac{du}{dt}=(3u^{2}+2)\cdot 2t. At t=1t=1, u=2u=2: dydt=(12+2)×2=28\frac{dy}{dt}=(12+2)\times 2=28. Pitfall: forgetting to compute uu at t=1t=1 and replacing uu with 11.

e)

Product: dzdt=2xdxdt⋅y+x2dydt\frac{dz}{dt}=2x\frac{dx}{dt}\cdot y+x^{2}\frac{dy}{dt}. So dzdt=2×3×2×5+9×(−1)=60−9=51\frac{dz}{dt}=2\times 3\times 2\times 5+9\times(-1)=60-9=51. Pitfall: writing 2xdxdt⋅dydt2x\frac{dx}{dt}\cdot\frac{dy}{dt}, that is, differentiating both factors at once.

f)

z=xy−2z=xy^{-2}, a product: dzdt=1y2dxdt−2xy3dydt\frac{dz}{dt}=\frac{1}{y^{2}}\frac{dx}{dt}-\frac{2x}{y^{3}}\frac{dy}{dt}. So dzdt=34−2×88×0.5=0.75−1=−0.25\frac{dz}{dt}=\frac{3}{4}-\frac{2\times 8}{8}\times 0.5=0.75-1=-0.25. The numerator grows and yet the quotient falls: the square of the denominator weighs more.

g)

Differentiate both sides: 2xdxdt+2ydydt=02x\frac{dx}{dt}+2y\frac{dy}{dt}=0, so dydt=−xydxdt\frac{dy}{dt}=-\frac{x}{y}\frac{dx}{dt}. At the point (5,12)(5, 12): dydt=−512×6=−2.5\frac{dy}{dt}=-\frac{5}{12}\times 6=-2.5. Pitfall: differentiating y2y^{2} as 2y2y, without the factor dydt\frac{dy}{dt}, and having nothing left to solve for.

h)

dzdt=12x2+y2(2xdxdt+2ydydt)=xdxdt+ydydtx2+y2\frac{dz}{dt}=\frac{1}{2\sqrt{x^{2}+y^{2}}}\left(2x\frac{dx}{dt}+2y\frac{dy}{dt}\right)=\frac{x\frac{dx}{dt}+y\frac{dy}{dt}}{\sqrt{x^{2}+y^{2}}}. Here 36+64=10\sqrt{36+64}=10, so dzdt=6×3+8×(−2)10=210=0.2\frac{dz}{dt}=\frac{6\times 3+8\times(-2)}{10}=\frac{2}{10}=0.2.

i)

dydt=2xx2+1dxdt\frac{dy}{dt}=\frac{2x}{x^{2}+1}\frac{dx}{dt}: the derivative of the logarithm, then that of the inside, then the rate of xx. At x=3x=3: dydt=610×(−2)=−1.2\frac{dy}{dt}=\frac{6}{10}\times(-2)=-1.2.

j)

Take the logarithm: ln⁡z=2ln⁡x+3ln⁡y\ln z=2\ln x+3\ln y, then differentiate with respect to tt: 1zdzdt=2⋅1xdxdt+3⋅1ydydt\frac{1}{z}\frac{dz}{dt}=2\cdot\frac{1}{x}\frac{dx}{dt}+3\cdot\frac{1}{y}\frac{dy}{dt}. Relative rates are weighted by the exponents: 2×1.5+3×(−0.8)=3−2.4=0.62\times 1.5+3\times(-0.8)=3-2.4=0.6% per year. Pitfall: adding the rates without the exponents, 1.5−0.8=0.71.5-0.8=0.7%.

Check: for each line, advance each quantity by a small step, x+0.001dxdtx+0.001\frac{dx}{dt} and y+0.001dydty+0.001\frac{dy}{dt}, recompute the quantity sought, and its increase divided by 0.0010.001 must recover the rate obtained.

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Part A: the basics (/50)

Exercise 1: The five-step method

A related rate links the speeds of two quantities that depend on one another and, both of them, on time. The method never changes: name, relate, differentiate with respect to TIME, substitute, conclude with the units.

The average processing delay of a case in a public service is T=n220,000+3T=\dfrac{n^{2}}{20{,}000}+3 days, where nn is the number of cases filed per week. Filings increase by 12 cases per week, every week.

1002003004005006007008009001000510152025303540455055delay T, in daysn, cases filed per week
  • a) State the five steps of the related-rates method, in order.
  • b) Write dTdt\dfrac{dT}{dt} in terms of nn and dndt\dfrac{dn}{dt}.
  • c) Compute dTdt\dfrac{dT}{dt} when n=400n=400, then when n=800n=800.
  • d) The service starts at n=400n=400. In how many weeks will the delay reach 20 days?
  • e) Filings grow at a constant speed. Why does the delay get worse faster and faster?

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  • a) Name, relate, differentiate with respect to time, substitute, conclude with the units.
  • b) dTdt=n10,000×dndt\dfrac{dT}{dt}=\dfrac{n}{10{,}000}\times\dfrac{dn}{dt}.
  • c) 0.480.48 then 0.960.96 day per week.
  • d) n≈583.1n\approx 583.1 cases, reached at t≈15.26t\approx 15.26 weeks.
  • e) dTdt\dfrac{dT}{dt} is proportional to nn, the relation being quadratic.
a)

First step, NAME the variables and say which ones depend on time: here TT and nn both depend on tt. Second step, WRITE the relation that links them, T=n220,000+3T=\dfrac{n^{2}}{20{,}000}+3. Third step, DIFFERENTIATE both sides with respect to TIME, which brings out the chain rule. Fourth step, SUBSTITUTE the numerical values, and only now. Fifth step, CONCLUDE with the units and a sentence. The order of steps 3 and 4 is the only real difficulty of the chapter, and exercise 2 is devoted to it.

b)

Differentiating with respect to tt: dTdt=2n20,000×dndt=n10,000×dndt\dfrac{dT}{dt}=\dfrac{2n}{20{,}000}\times\dfrac{dn}{dt}=\dfrac{n}{10{,}000}\times\dfrac{dn}{dt}. The factor dndt\dfrac{dn}{dt} comes from the chain rule, because nn is not the variable of differentiation: it is a function of time. Leaving it out would amount to computing dTdn\dfrac{dT}{dn}, a completely different number, whose unit would be days per case and not days per week.

c)

For n=400n=400: dTdt=40010,000×12=0.04×12=0.48\dfrac{dT}{dt}=\dfrac{400}{10{,}000}\times 12=0.04\times 12=0.48 day per week. For n=800n=800: dTdt=0.08×12=0.96\dfrac{dT}{dt}=0.08\times 12=0.96 day per week. The same inflow of twelve extra cases a week degrades the delay twice as fast when the service is already loaded.

d)

First find the corresponding nn: n220,000+3=20\dfrac{n^{2}}{20{,}000}+3=20 gives n2=17×20,000=340,000n^{2}=17\times 20{,}000=340{,}000, so n=340,000≈583.1n=\sqrt{340{,}000}\approx 583.1 cases. Since n(t)=400+12tn(t)=400+12t, solve 400+12t=583.1400+12t=583.1, which gives t≈15.26t\approx 15.26 weeks. In fifteen weeks, the delay will have almost doubled.

e)

Because the relation between TT and nn is QUADRATIC, while the growth of nn is linear. Formally, dTdt=n10,000×12\dfrac{dT}{dt}=\dfrac{n}{10{,}000}\times 12 is proportional to nn, so it grows with it. In concrete terms, a lightly loaded service absorbs the extra cases in its idle time, and a loaded one stacks them up. It is the same phenomenon as the asymptote of the waiting line seen in chapter 2, in polynomial form: the degradation of a saturated service is never proportional to the extra demand.

Exercise 2: Substituting before differentiating: the error that cancels everything

This is the costliest error of the chapter, and it looks reasonable: you know the values, you substitute them, then you differentiate. The result is always zero, because you have differentiated a number.

An organization pays a total payroll of M=4,800,000M=4{,}800{,}000 dollars to n=120n=120 employees. The payroll grows by 180,000180{,}000 dollars a year and the headcount by 6 people a year.

  • a) The average salary is R=MnR=\dfrac{M}{n}. Compute it, then explain why substituting the values before differentiating gives dRdt=0\dfrac{dR}{dt}=0.
  • b) Differentiate the relation with respect to time and give dRdt\dfrac{dR}{dt} in terms of MM, nn and their speeds.
  • c) Compute dRdt\dfrac{dR}{dt} and interpret its sign.
  • d) What growth of the payroll would make dRdt\dfrac{dR}{dt} zero?
  • e) State the rule in one sentence, and say what it protects.

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  • a) R=40,000R=40{,}000 dollars; substituting first differentiates a constant, hence zero.
  • b) dRdt=M′n−Mn′n2\dfrac{dR}{dt}=\dfrac{M'n-Mn'}{n^{2}}.
  • c) −500-500 dollars per year: the average salary falls while the payroll rises.
  • d) 240,000240{,}000 dollars per year, that is R×dndtR\times\dfrac{dn}{dt}.
  • e) Differentiate the relation, then substitute. Only true constants are substituted at the start.
a)

R=4,800,000120=40,000R=\dfrac{4{,}800{,}000}{120}=40{,}000 dollars per employee. If you substitute first, you write R=40,000R=40{,}000, which is a CONSTANT, and the derivative of a constant is zero. The calculation is perfectly correct and the answer is perfectly wrong: you have differentiated a snapshot of one instant, not the film. The values 4,800,0004{,}800{,}000 and 120120 are true at one date only, and it is precisely their variation that is asked for.

b)

Differentiate the relation R=MnR=\dfrac{M}{n} with respect to tt, with the quotient rule and the chain rule: dRdt=dMdt n−M dndtn2\dfrac{dR}{dt}=\dfrac{\dfrac{dM}{dt}\,n-M\,\dfrac{dn}{dt}}{n^{2}}. It is the WHOLE relation that is differentiated, before any substitution.

c)

dRdt=180,000×120−4,800,000×61202=21,600,000−28,800,00014,400=−7,200,00014,400=−500\dfrac{dR}{dt}=\dfrac{180{,}000\times 120-4{,}800{,}000\times 6}{120^{2}}=\dfrac{21{,}600{,}000-28{,}800{,}000}{14{,}400}=\dfrac{-7{,}200{,}000}{14{,}400}=-500 dollars per year. The AVERAGE salary falls by 500 dollars a year, while the payroll rises by 180,000 dollars. Both facts are true at the same time: the organization spends more on salaries and pays less well, because it hires faster than it grows its budget. A report that quoted only the payroll would give exactly the opposite impression of the reality experienced.

d)

Set the numerator to zero: dMdt×120=4,800,000×6\dfrac{dM}{dt}\times 120=4{,}800{,}000\times 6, so dMdt=28,800,000120=240,000\dfrac{dM}{dt}=\dfrac{28{,}800{,}000}{120}=240{,}000 dollars per year. In other words, it would take 240,000 dollars more per year, not 180,000, for the average salary to hold. It can be read another way: dMdt=R×dndt\dfrac{dM}{dt}=R\times\dfrac{dn}{dt}, that is 40,000×640{,}000\times 6, which amounts to funding each new employee at the current average salary.

e)

Differentiate the RELATION, then substitute: never the reverse. What the rule protects is the distinction between a value and a function. Every quantity that varies must remain a letter until the last line, and only the quantities that are TRULY constant, a contractual price, a fixed area, a number of weeks per year, may be substituted from the start.

Exercise 3: A product: the price falls, the volume rises

When the two factors of a product move in opposite directions, no intuition tells you what happens to the product. The product rule, differentiated with respect to time, settles it in one line.

A service is sold at p=24p=24 dollars and sells q=540q=540 units per month. The price falls by 0.500.50 dollar per month and the volume rises by 18 units per month. The figure below shows the situation.

R = pqq = 540 units per monthq rises by 18 per monthp = 24 dollarsp falls by 0.50 dollar per month
  • a) Write the revenue R=pqR=pq and compute its current value.
  • b) Differentiate with respect to time and compute dRdt\dfrac{dR}{dt}.
  • c) What monthly price drop would leave the revenue unchanged?
  • d) Check your answer to b) with relative rates: R′R=p′p+q′q\dfrac{R'}{R}=\dfrac{p'}{p}+\dfrac{q'}{q}.
  • e) The price falls by 2.1% per month and the volume rises by 3.3% per month. What is the business conclusion?

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  • a) R=12,960R=12{,}960 dollars per month.
  • b) dRdt=−270+432=+162\dfrac{dR}{dt}=-270+432=+162 dollars per month.
  • c) −0.80-0.80 dollar per month.
  • d) −2.08-2.08% + 3.33+\,3.33% =+1.25=+1.25%, and 0.0125×12,960=1620.0125\times 12{,}960=162 dollars.
  • e) The discount stays profitable as long as the relative rise in volume exceeds the relative drop in price.
a)

R=pq=24×540=12,960R=pq=24\times 540=12{,}960 dollars per month.

b)

dRdt=dpdt q+p dqdt=(−0.50)×540+24×18=−270+432=+162\dfrac{dR}{dt}=\dfrac{dp}{dt}\,q+p\,\dfrac{dq}{dt}=(-0.50)\times 540+24\times 18=-270+432=+162 dollars per month. The revenue INCREASES by 162 dollars per month: the volume effect, 432 dollars, outweighs the price effect, −270-270 dollars. The two terms of the product rule each have a name in management, and their sum is what you observe at the end of the month.

c)

We want dpdt\dfrac{dp}{dt} such that dpdt×540+24×18=0\dfrac{dp}{dt}\times 540+24\times 18=0, so dpdt=−432540=−0.80\dfrac{dp}{dt}=-\dfrac{432}{540}=-0.80 dollar per month. A drop of 80 cents per month would exactly cancel the volume gain. The current drop, 50 cents, therefore stays below the break-even point, and that is the only question that matters in deciding whether to continue the discount.

d)

p′p=−0.5024≈−0.02083\dfrac{p'}{p}=\dfrac{-0.50}{24}\approx -0.02083, that is −2.08-2.08% per month. q′q=18540=0.03333\dfrac{q'}{q}=\dfrac{18}{540}=0.03333, that is +3.33+3.33% per month. The sum is 0.01250.0125, that is +1.25+1.25% per month. We do recover dRdt=0.0125×12,960=162\dfrac{dR}{dt}=0.0125\times 12{,}960=162 dollars per month. The two routes agree, and the second can be done in your head.

e)

The revenue grows by about 1.25% per month, the difference of the two percentages. The business conclusion fits in one sentence: the discount is PROFITABLE as long as the relative rise in volume exceeds the relative drop in price. It is a decision rule that can be used without a calculator, and it explains why a company tracks the percentage change in its sales rather than their number: only the percentage compares directly with the discount granted.

Exercise 4: Stock and flow: the demographic balance

A population is a STOCK, fed and drained by FLOWS: births, deaths, migratory inflows and outflows. The derivative of a stock is the algebraic sum of its flows, and it is the simplest form of related rate.

A municipality has P=48,000P=48{,}000 inhabitants. Over one year, it records 1,1201{,}120 births, 860 deaths and a net migration of −140-140 people. The figure below shows the situation.

P = 48,000peoplebirths 1,120net migration −140deaths 860
  • a) Write dPdt\dfrac{dP}{dt} in terms of the flows, compute it, then give the relative growth rate.
  • b) An attraction program raises net migration to +300+300. What do dPdt\dfrac{dP}{dt} and the relative rate become?
  • c) The crude birth rate is N=1,000 BPN=\dfrac{1{,}000\,B}{P}, in births per thousand inhabitants. Compute it in the starting situation.
  • d) Births stay at 1,1201{,}120 per year and the population grows as in a). Compute dNdt\dfrac{dN}{dt}.
  • e) Can a municipality see its crude birth rate fall without a single birth missing? Explain.

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  • a) dPdt=120\dfrac{dP}{dt}=120 inhabitants per year, that is 0.250.25% per year.
  • b) 560560 inhabitants per year, that is about 1.171.17% per year.
  • c) N≈23.33N\approx 23.33 births per thousand inhabitants.
  • d) dNdt≈−0.058\dfrac{dN}{dt}\approx -0.058 per thousand per year.
  • e) Yes: a crude rate is a quotient, and its denominator can grow on its own.
a)

dPdt=B−D+M=1,120−860−140=120\dfrac{dP}{dt}=B-D+M=1{,}120-860-140=120 inhabitants per year. The relative rate is 12048,000×100=0.25\dfrac{120}{48{,}000}\times 100=0.25% per year. The municipality is growing, but slowly: the positive natural balance, 260 people, is cut by more than half by the migration deficit.

b)

dPdt=1,120−860+300=560\dfrac{dP}{dt}=1{,}120-860+300=560 inhabitants per year, and the relative rate becomes 56048,000×100≈1.17\dfrac{560}{48{,}000}\times 100\approx 1.17% per year. A net migration improved by 440 people multiplies the growth rate by nearly five, without any demographic parameter having changed. It is the quickest lever a municipality has, and this is why attraction policies weigh more in the short run than birth-rate policies.

c)

N=1,000×1,12048,000=1,120,00048,000≈23.33N=\dfrac{1{,}000\times 1{,}120}{48{,}000}=\dfrac{1{,}120{,}000}{48{,}000}\approx 23.33 births per thousand inhabitants.

d)

The numerator is constant and the denominator varies, so dNdt=1,000 B×(−1P2)dPdt=−1,000×1,120×12048,0002=−134,400,0002,304,000,000≈−0.058\dfrac{dN}{dt}=1{,}000\,B\times\left(-\dfrac{1}{P^{2}}\right)\dfrac{dP}{dt}=-\dfrac{1{,}000\times 1{,}120\times 120}{48{,}000^{2}}=-\dfrac{134{,}400{,}000}{2{,}304{,}000{,}000}\approx -0.058 per thousand per year. The crude birth rate FALLS, although the number of births has not moved by a single unit.

e)

Yes, and the previous calculation is the proof. A crude rate is a QUOTIENT: it falls as soon as its denominator grows faster than its numerator, here as soon as the population increases with births constant. The same mechanism applies to the crime rate, the equipment rate, the number of doctors per thousand inhabitants. The methodological consequence is constant: faced with a rate that moves, the first question is which of the two terms has moved, and exercise 10 will ask it about the most quoted figure of all, the unemployment rate.

Exercise 5: A three-link chain: investing to reduce a wait

Public decisions are almost always assessed at the end of a chain: you invest, the investment raises a capacity, the capacity lowers a utilization rate, and that rate drives the waiting time. Each link is a derivative, and the chain rule multiplies them.

The capacity of a service is c=60+0.5 Ic=60+0.5\,I cases per day, where II is the cumulative investment in thousands of dollars. Demand is stable at 96 cases per day, the utilization rate is ρ=96c\rho=\dfrac{96}{c} and the waiting time is W=ρ1−ρW=\dfrac{\rho}{1-\rho}. Today I=100I=100 and the investment grows by 12 thousand dollars per year. The figure below shows the situation.

IinvestmentccapacityρutilizationWwaiting+ 12 per year
  • a) Compute cc, ρ\rho and WW today.
  • b) Compute dcdt\dfrac{dc}{dt}.
  • c) Compute dρdt\dfrac{d\rho}{dt}.
  • d) Compute dWdt\dfrac{dW}{dt} and give its unit.
  • e) Would the same annual investment produce the same gain if the service were less loaded? Justify without a new full calculation.

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  • a) c=110c=110 cases per day, ρ≈0.873\rho\approx 0.873, W≈6.86W\approx 6.86 service times.
  • b) dcdt=6\dfrac{dc}{dt}=6 cases per day per year.
  • c) dρdt≈−0.0476\dfrac{d\rho}{dt}\approx -0.0476 per year.
  • d) dWdt≈−2.94\dfrac{dW}{dt}\approx -2.94 service times per year.
  • e) No: the factor 1(1−ρ)2\dfrac{1}{(1-\rho)^{2}} drops from 61.761.7 to 4, so the gain would be about fifteen times smaller.
a)

c=60+0.5×100=110c=60+0.5\times 100=110 cases per day. ρ=96110≈0.8727\rho=\dfrac{96}{110}\approx 0.8727, that is 87.3% utilization. W=0.87271−0.8727=0.87270.1273≈6.86W=\dfrac{0.8727}{1-0.8727}=\dfrac{0.8727}{0.1273}\approx 6.86 service times: a user waits on average nearly seven times the duration of one processing.

b)

dcdt=0.5×dIdt=0.5×12=6\dfrac{dc}{dt}=0.5\times\dfrac{dI}{dt}=0.5\times 12=6 cases per day per year. The capacity grows by six daily cases each year.

c)

ρ=96 c−1\rho=96\,c^{-1}, so dρdt=−96c2×dcdt=−96×61102=−57612,100≈−0.04760\dfrac{d\rho}{dt}=-\dfrac{96}{c^{2}}\times\dfrac{dc}{dt}=-\dfrac{96\times 6}{110^{2}}=-\dfrac{576}{12{,}100}\approx -0.04760 per year. The utilization rate falls by about 4.76 percentage points per year.

d)

dWdρ=1(1−ρ)2=10.12732≈61.73\dfrac{dW}{d\rho}=\dfrac{1}{(1-\rho)^{2}}=\dfrac{1}{0.1273^{2}}\approx 61.73. By the chain rule, dWdt=61.73×(−0.04760)≈−2.94\dfrac{dW}{dt}=61.73\times(-0.04760)\approx -2.94 service times per year. The waiting time therefore decreases by about three service times each year, which is considerable compared with the starting 6.86: at the initial rate, more than 40% of the wait (2.94 out of 6.86) disappears over the first year.

e)

No, and the gain would be much SMALLER. The only factor that changes in the chain is dWdρ=1(1−ρ)2\dfrac{dW}{d\rho}=\dfrac{1}{(1-\rho)^{2}}, which equals 61.7 at 87.3% utilization and only 4 at 50%. The other two links, dcdt=6\dfrac{dc}{dt}=6 and the form of ρ\rho, are almost unchanged. The same investment would therefore produce about fifteen times less reduction in waiting in a lightly loaded service. This is the quantitative argument for investing where saturation is strongest, and it rests only on the square in the denominator.

Part B: problems and reasoning (/50)

Exercise 6: The rule for relative rates, proved then checked

Exercises 2 and 3 each gave a result through a long calculation. The same thing is obtained in your head as soon as you work in PERCENTAGES, and the proof takes three lines.

It is the most profitable result of the chapter: it turns a quotient calculation into a subtraction of percentages.

  • a) Let z=xyz=xy, all three quantities depending on time. Prove that z′z=x′x+y′y\dfrac{z'}{z}=\dfrac{x'}{x}+\dfrac{y'}{y}.
  • b) Let z=xyz=\dfrac{x}{y}. Prove that z′z=x′x−y′y\dfrac{z'}{z}=\dfrac{x'}{x}-\dfrac{y'}{y}.
  • c) Check the product rule on the revenue of exercise 3.
  • d) Check the quotient rule on the average salary of exercise 2, and recover the −500-500 dollars per year.
  • e) Why is this rule used more in management than the quotient formula itself?

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  • a) Divide z′=x′y+xy′z'=x'y+xy' by z=xyz=xy: z′z=x′x+y′y\dfrac{z'}{z}=\dfrac{x'}{x}+\dfrac{y'}{y}.
  • b) Multiply x′y−xy′y2\dfrac{x'y-xy'}{y^{2}} by yx\dfrac{y}{x}: z′z=x′x−y′y\dfrac{z'}{z}=\dfrac{x'}{x}-\dfrac{y'}{y}.
  • c) −2.08-2.08% + 3.33+\,3.33% =1.25=1.25%, and 0.0125×12,960=1620.0125\times 12{,}960=162 dollars per month.
  • d) 3.753.75% − 5-\,5% =−1.25=-1.25%, and −0.0125×40,000=−500-0.0125\times 40{,}000=-500 dollars per year.
  • e) Because it compares percentages, the only quantities comparable with each other, whereas absolute values are not.
a)

The product rule gives z′=x′y+xy′z'=x'y+xy'. Divide both sides by z=xyz=xy, which is nonzero: z′z=x′yxy+xy′xy=x′x+y′y\dfrac{z'}{z}=\dfrac{x'y}{xy}+\dfrac{xy'}{xy}=\dfrac{x'}{x}+\dfrac{y'}{y}. The simplification is immediate, each term losing the factor that it does not contain in the numerator.

b)

The quotient rule gives z′=x′y−xy′y2z'=\dfrac{x'y-xy'}{y^{2}}. Divide by z=xyz=\dfrac{x}{y}, which amounts to multiplying by yx\dfrac{y}{x}: z′z=x′y−xy′y2×yx=x′y−xy′xy=x′x−y′y\dfrac{z'}{z}=\dfrac{x'y-xy'}{y^{2}}\times\dfrac{y}{x}=\dfrac{x'y-xy'}{xy}=\dfrac{x'}{x}-\dfrac{y'}{y}. The minus sign comes from the numerator of the quotient rule, and it carries all the economic interest of the result.

c)

Revenue R=pqR=pq with p=24p=24, q=540q=540, p′=−0.50p'=-0.50 and q′=18q'=18. Relative rates: −0.5024≈−2.08\dfrac{-0.50}{24}\approx -2.08% and 18540≈3.33\dfrac{18}{540}\approx 3.33% per month. Sum: 1.251.25% per month. Multiplied by R=12,960R=12{,}960, it gives back 162162 dollars per month, exactly the value found in exercise 3 with the product rule.

d)

Average salary R=MnR=\dfrac{M}{n} with M=4,800,000M=4{,}800{,}000, n=120n=120, M′=180,000M'=180{,}000 and n′=6n'=6. Relative rates: 180,0004,800,000=3.75\dfrac{180{,}000}{4{,}800{,}000}=3.75% and 6120=5\dfrac{6}{120}=5% per year. Difference: 3.75−5=−1.253.75-5=-1.25% per year. Multiplied by R=40,000R=40{,}000 dollars, it gives −500-500 dollars per year, the value of exercise 2. The reading is direct: the payroll grows more slowly, in percent, than the headcount, so the average salary falls.

e)

Because it answers, with no calculation, the only question that comes up in a meeting: which of the numerator and the denominator is growing faster in PERCENT? The absolute values, 180,000 dollars and 6 people, cannot be compared; the percentages, 3.75% and 5%, can be compared at once. The rule also explains why so many indicators deteriorate without any of their components deteriorating: gross domestic product per capita, average salary, density of doctors, crude birth rate. In each case, both terms rise, and it is their ORDER in percent that decides the direction of the quotient.

Exercise 7: A capped model: market share and revenue

The revenue of a service is the product of its market share and the size of the market. When the first levels off and the second keeps growing, the contribution of each reverses over time.

Market share M(t)=80tt+12M(t)=\dfrac{80t}{t+12}, in percent, and market size T(t)=250+3tT(t)=250+3t, in millions of dollars, with tt in months. The revenue is A=M100 TA=\dfrac{M}{100}\,T.

51015202530354045505560102030405060708090ceiling 80%M(t)t, in monthsM(t), in %
  • a) Compute M′(t)M'(t), then M(12)M(12) and M′(12)M'(12).
  • b) Compute T(12)T(12) and A(12)A(12), then dAdt\dfrac{dA}{dt} at t=12t=12.
  • c) Redo the calculation at t=48t=48.
  • d) In each of the two cases, what share of the growth comes from market share and what share from market size?
  • e) What strategic consequence do you draw from this reversal?

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  • a) M′(t)=960(t+12)2M'(t)=\dfrac{960}{(t+12)^{2}}; M(12)=40M(12)=40% and M′(12)≈1.667M'(12)\approx 1.667 points per month.
  • b) T(12)=286T(12)=286, A(12)=114.4A(12)=114.4 million and dAdt≈5.97\dfrac{dA}{dt}\approx 5.97 million per month.
  • c) M(48)=64M(48)=64%, A(48)=252.16A(48)=252.16 million and dAdt≈2.97\dfrac{dA}{dt}\approx 2.97 million per month.
  • d) About 80% against 20% at t=12t=12; about 35% against 65% at t=48t=48.
  • e) Shift away from winning share as soon as M′100T\dfrac{M'}{100}T falls below M100T′\dfrac{M}{100}T'.
a)

By the quotient rule, M′(t)=80(t+12)−80t(t+12)2=960(t+12)2M'(t)=\dfrac{80(t+12)-80t}{(t+12)^{2}}=\dfrac{960}{(t+12)^{2}}, in percentage points per month. At t=12t=12: M(12)=96024=40M(12)=\dfrac{960}{24}=40% and M′(12)=960576≈1.667M'(12)=\dfrac{960}{576}\approx 1.667 points per month.

b)

T(12)=250+36=286T(12)=250+36=286 million dollars and A(12)=0.40×286=114.4A(12)=0.40\times 286=114.4 million. By the product rule, dAdt=M′100T+M100T′=1.667100×286+0.40×3≈4.767+1.200=5.97\dfrac{dA}{dt}=\dfrac{M'}{100}T+\dfrac{M}{100}T'=\dfrac{1.667}{100}\times 286+0.40\times 3\approx 4.767+1.200=5.97 million dollars per month.

c)

At t=48t=48: M(48)=3,84060=64M(48)=\dfrac{3{,}840}{60}=64% and M′(48)=9603,600≈0.267M'(48)=\dfrac{960}{3{,}600}\approx 0.267 point per month. T(48)=250+144=394T(48)=250+144=394 million and A(48)=0.64×394=252.16A(48)=0.64\times 394=252.16 million. Then dAdt=0.267100×394+0.64×3≈1.051+1.920=2.97\dfrac{dA}{dt}=\dfrac{0.267}{100}\times 394+0.64\times 3\approx 1.051+1.920=2.97 million dollars per month.

d)

At t=12t=12, market share contributes 4.7674.767 of the 5.9675.967 million, about 80%, and market size 1.2001.200, about 20%. At t=48t=48, market share contributes only 1.0511.051 of the 2.9712.971 million, about 35%, and market size 1.9201.920, about 65%. The two contributions have reversed, and the reversal comes solely from the capping of MM: its growth rate collapses as 960(t+12)2\dfrac{960}{(t+12)^{2}}, while the contribution of the market stays fixed at 0.03 M0.03\,M.

e)

That the effort to win share has an expiry date. As long as market share is far from its ceiling, each point gained brings in more than the growth of the market, and the sales spending is justified. Past a certain point, the same effort produces almost nothing, and growth comes mostly from the market itself, that is, from a factor the company does not control. The resulting decision is to shift resources from WINNING SHARE to retention, a broader offering or a new market, and the calculation says precisely when: as soon as M′100T\dfrac{M'}{100}T falls below M100T′\dfrac{M}{100}T'.

51015202530354045505560102030405060708090ceiling 80%M(t)M(12) = 40M(48) = 64t, in monthsM(t), in %

Exercise 8: Five statements to correct

Each of these five sentences has been heard in class. Say whether it is true or false, and if it is false, write the correct statement.

A correction that merely says “false” earns no marks: it is the correct sentence that is asked for.

  • a) You can substitute the known numerical values before differentiating; it changes nothing in the result.
  • b) If the numerator of a quotient increases, the quotient increases.
  • c) A related rate is computed without the chain rule; you just differentiate the relation.
  • d) dAdt\dfrac{dA}{dt} and dAdr\dfrac{dA}{dr} are measured in the same unit.
  • e) The relative rate of a product is the product of the relative rates.

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  • a) False: a substituted value becomes a constant, with a zero derivative.
  • b) False: the quotient grows if x′x>y′y\dfrac{x'}{x}>\dfrac{y'}{y}.
  • c) False: the factor dndt\dfrac{dn}{dt} comes from the chain rule and is never omitted.
  • d) False: the unit depends on the variable of differentiation.
  • e) False: they add for a product and subtract for a quotient.
a)

FALSE, and it is the error that systematically earns zero. A substituted value becomes a constant, and the derivative of a constant is zero. Exercise 2 shows it: substituting M=4,800,000M=4{,}800{,}000 and n=120n=120 before differentiating would give dRdt=0\dfrac{dR}{dt}=0, whereas the average salary falls by 500 dollars a year. Correct statement: differentiate the relation, then substitute; only the quantities that are TRULY constant are substituted from the start.

b)

FALSE. The quotient depends on BOTH terms: it increases if the numerator grows faster, in percent, than the denominator. Exercise 2 gives a counterexample, a payroll that rises with an average salary that falls, exercise 4 another, constant births with a crude birth rate that falls. Correct statement: the quotient grows if x′x>y′y\dfrac{x'}{x}>\dfrac{y'}{y}.

c)

FALSE. Differentiating T=n220,000+3T=\dfrac{n^{2}}{20{,}000}+3 with respect to TIME requires the chain rule, since nn is itself a function of time: you get n10,000×dndt\dfrac{n}{10{,}000}\times\dfrac{dn}{dt}, and not n10,000\dfrac{n}{10{,}000}. The forgotten factor is exactly what distinguishes a related rate from an ordinary derivative. Correct statement: every related rate is an application of the chain rule, and the factor dndt\dfrac{dn}{dt} is never omitted.

d)

FALSE, and the units say so. If AA is an area in square kilometres, rr a radius in kilometres and tt a time in years, then dAdr\dfrac{dA}{dr} is measured in square kilometres per kilometre, that is, in kilometres, and dAdt\dfrac{dA}{dt} in square kilometres per year. Correct statement: the unit of a derivative depends on the variable of differentiation, and the units check is the quickest way to spot a forgotten factor.

e)

FALSE. The relative rates of a product ADD, and those of a quotient subtract. The proof is in exercise 6: divide z′=x′y+xy′z'=x'y+xy' by z=xyz=xy. A product of rates would in any case make no dimensional sense, since two percentages multiplied give a percentage of a percentage. Correct statement: (xy)′xy=x′x+y′y\dfrac{(xy)'}{xy}=\dfrac{x'}{x}+\dfrac{y'}{y}.

Exercise 9: Problem: the density of a sprawling city

Urban sprawl is the most discussed phenomenon in land-use planning, and it is a related rate: population and urbanized area both grow, and it is their quotient that decides.

A city has P=182,000P=182{,}000 inhabitants on S=74S=74 square kilometres of urbanized land. The population gains 1,4501{,}450 inhabitants per year and the urbanized area 1.81.8 square kilometres per year.

tP, people+ 1,450 per yeartS, km²+ 1.8 km² per year
  • a) Compute the current density d=PSd=\dfrac{P}{S}, to the nearest tenth.
  • b) Compute dddt\dfrac{dd}{dt} to the nearest hundredth and give its unit.
  • c) Recover this result with relative rates and give the relative rate of the density, in percent.
  • d) What annual growth of the urbanized area would keep the density constant?
  • e) The city gains inhabitants and loses density. Why is this a budget problem, and not only an aesthetic one?

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  • a) d≈2,459.5d\approx 2{,}459.5 inhabitants per square kilometre.
  • b) dddt≈−40.23\dfrac{dd}{dt}\approx -40.23 inhabitants per square kilometre per year.
  • c) 0.7970.797% − 2.432-\,2.432% =−1.636=-1.636% per year, and −0.01636×2,459.5≈−40.23-0.01636\times 2{,}459.5\approx -40.23.
  • d) S′=S×P′P≈0.59S'=S\times\dfrac{P'}{P}\approx 0.59 square kilometre per year.
  • e) Infrastructure costs follow the area, revenues follow the residents: the cost per resident rises.
a)

d=182,00074≈2,459.5d=\dfrac{182{,}000}{74}\approx 2{,}459.5 inhabitants per square kilometre.

b)

dddt=P′S−PS′S2=1,450×74−182,000×1.8742=107,300−327,6005,476=−220,3005,476≈−40.23\dfrac{dd}{dt}=\dfrac{P'S-PS'}{S^{2}}=\dfrac{1{,}450\times 74-182{,}000\times 1.8}{74^{2}}=\dfrac{107{,}300-327{,}600}{5{,}476}=\dfrac{-220{,}300}{5{,}476}\approx -40.23 inhabitants per square kilometre per year. The sign is negative: the city is becoming LESS DENSE, although both quantities are increasing.

c)

Relative rates: P′P=1,450182,000≈0.797\dfrac{P'}{P}=\dfrac{1{,}450}{182{,}000}\approx 0.797% per year and S′S=1.874≈2.432\dfrac{S'}{S}=\dfrac{1.8}{74}\approx 2.432% per year. The difference is 0.797−2.432=−1.6360.797-2.432=-1.636% per year. Multiplied by the density, −0.01636×2,459.5≈−40.23-0.01636\times 2{,}459.5\approx -40.23, it gives back the previous result. The urbanized area grows three times faster, in percent, than the population: everything is said in that comparison.

d)

The density stays constant when the two relative rates are equal: S′S=P′P\dfrac{S'}{S}=\dfrac{P'}{P}, so S′=S×P′P=74×0.00797≈0.59S'=S\times\dfrac{P'}{P}=74\times 0.00797\approx 0.59 square kilometre per year. The city is currently spreading about three times faster than this land budget, and it is this gap, not the growth itself, that densification policies target.

e)

Because most municipal costs are proportional to the AREA served and not to the number of inhabitants: kilometres of water mains and sewers, of roadway to plow and repave, of electrical network, length of bus routes, travel time of emergency services. Revenues, for their part, come essentially from residents and buildings. When the area grows by 2.4% a year and the population by 0.8%, the infrastructure cost per resident rises mechanically, without any service having been improved. This is exactly the structure of the average cost met in chapter 2, a largely fixed cost divided by a number of users, and it explains why a growing municipality can become poorer.

5101520253017001800190020002100220023002400250026002,459.5 at the startd = P/St, in yearsdensity, people/km²

Exercise 10: Problem: the unemployment rate, numerator and denominator

The unemployment rate is the quotient of the number of unemployed by the labour force. It is therefore a related rate, and its change says nothing until you have looked at which of the two terms has moved.

A region has U=24,800U=24{,}800 unemployed people in a labour force of A=412,000A=412{,}000 people. Over the past year, UU fell by 900 people and AA by 3,000.

  • a) Compute the unemployment rate u=UAu=\dfrac{U}{A}, in percent, to the nearest thousandth.
  • b) Compute dudt\dfrac{du}{dt} and express it in percentage points per year.
  • c) What would dudt\dfrac{du}{dt} be if the number of unemployed stayed put and the labour force still lost 3,000 people?
  • d) What would dudt\dfrac{du}{dt} be if 3,0003{,}000 unemployed people left the labour force, with no job created?
  • e) Is a falling unemployment rate always good news? Answer using c) and d).

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  • a) u≈6.019u\approx 6.019%.
  • b) dudt≈−0.175\dfrac{du}{dt}\approx -0.175 percentage point per year.
  • c) +0.044+0.044 point per year: the rate would rise without one more unemployed person.
  • d) −0.684-0.684 point per year, without a single job created.
  • e) No: a quotient does not say which of its terms has moved, hence the publication of the participation rate.
a)

u=24,800412,000≈0.06019u=\dfrac{24{,}800}{412{,}000}\approx 0.06019, that is 6.0196.019%.

b)

dudt=U′A−UA′A2=(−900)×412,000−24,800×(−3,000)412,0002=−370,800,000+74,400,000169,744,000,000≈−0.001746\dfrac{du}{dt}=\dfrac{U'A-UA'}{A^{2}}=\dfrac{(-900)\times 412{,}000-24{,}800\times(-3{,}000)}{412{,}000^{2}}=\dfrac{-370{,}800{,}000+74{,}400{,}000}{169{,}744{,}000{,}000}\approx -0.001746 per year, that is −0.175-0.175 percentage point per year. The rate therefore goes from about 6.02% to 5.84%.

c)

With U′=0U'=0: dudt=−U A′A2=−24,800×(−3,000)169,744,000,000≈+0.000438\dfrac{du}{dt}=\dfrac{-U\,A'}{A^{2}}=\dfrac{-24{,}800\times(-3{,}000)}{169{,}744{,}000{,}000}\approx +0.000438, that is +0.044+0.044 point per year. The rate would RISE, even though not one more unemployed person would have been recorded: dividing the same numerator by a smaller denominator gives a larger quotient.

d)

Here U′=−3,000U'=-3{,}000 and A′=−3,000A'=-3{,}000: dudt=(−3,000)×412,000+24,800×3,000169,744,000,000=−1,236,000,000+74,400,000169,744,000,000≈−0.00684\dfrac{du}{dt}=\dfrac{(-3{,}000)\times 412{,}000+24{,}800\times 3{,}000}{169{,}744{,}000{,}000}=\dfrac{-1{,}236{,}000{,}000+74{,}400{,}000}{169{,}744{,}000{,}000}\approx -0.00684, that is −0.684-0.684 point per year. The unemployment rate would plunge four times faster than in the actual situation, without a single job having been created: the 3,000 people simply stopped looking, so they left both the numerator and the denominator.

e)

No, and the two previous calculations are enough to show it. The same rate can fall because unemployed people found a job, a desirable situation, or because they gave up looking for one, which is exactly the opposite. A rate is a QUOTIENT, and a quotient never says which of its two terms has moved. This is why statistical agencies always publish, next to the unemployment rate, the PARTICIPATION RATE, that is, the share of the population that is in AA: read alone, the first figure cannot be interpreted, and read with the second, it becomes information. The lesson goes beyond unemployment and applies to every indicator built as a ratio, the density of exercise 9 as much as the crude birth rate of exercise 4.

1234512345678unemployed constant: +0.044actual: −0.1753,000 discouraged: −0.684t, in yearsu, in %
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© Ahmed Squalli Houssaini. Exercise set published at www.letuteurscientifique.ca/en/exercices/cegep-103-related-rates. Free for personal and classroom use; republishing it elsewhere requires written permission (legal notice).

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Get in touch for a first session. Calculus in the mathematics profile is the course that opens the limited-enrolment admissions to business and economics programs, and it is won or lost in the first weeks.

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