UNIVERSIDAD DEL PACÍFICO

Mathematics III (2023-II)

Lecturer: Diego Winkelried

UNIT 3: TOPICS IN CALCULUS

Session 16:
(1) Implicit function theorem
(2) Comparative statics
 tractions
I
mi :
"relation"

F(x, y) = 0 there exists F : IR->R such that

-

IF : IR ? y f(x) satisfies F(x , f(x)) 0

R)
=
-> =

Sometimes you can find flo) explicitly -

I = f(x) explicit function

Sometime cannot find f conditions such that f exists

,
you
to find df/dx
->
We will be able

2 > e2 y2 1
F(e,y) y2
=

= 0 -
x + - 1 = 0 -
+

y
Explicit function (42 = 1 -
x2)
al
N1
= x
-

- y x2 -
=

-
= -

· x
In
W
1
-

- 1

-N 2x)
I= 1 x2
= i
-
=
-
0
- - -

da
-
1
 d E =-
I
At point A = -
> 0

Ac" (t) dx
·

W dy
' (-) dx
=

A =
.
dy =

srn can undetermined

A 0
E is
= - -

y
+

Implicit function :

Ed
mean
dy = -

Focdx Fydy 0 -
=

Flee, 3)
+

= 0

y f(x) dy f(x)dx
= Fee where
F is the
=

= - --
-

Fy implicit function
-

F(x, 3)
=

x +
y2 -
1 =- -
e 2x x

5d
-
-
--

Fy .

Implicit function theorem :

if Fy fo then If FiR-R , , ,
such

that fix) and F(x, f(x)) 0

(IFT) y
=

and , furthermore ,
dfdx=-FXF
 I - IRM "Explicit function" & f() =

,
filR"->RM
iRn
2 d Df()d
=

- man

IR* such
*

Implicit Function !
F: 1Rm+ -> that
nee

F(2 , ) =
& mx 1
nx1 mx1
e

(m +
n) x 1

Dentral :
DF( , 2) -

(9) =
0 -

[DED).
man mxM
=
0

-> DE dec +DFyd

=

! If IDFylfO ,
then filR" -

-
exists
->
DFyd = DE die
de
-

e
-

dY =

DE DE
mxM mx1 mx 1 ne
DfC2)
Economic modell: F(2 , 2) =
0 = model
a re
x
-
:

exogenous
: endogenous
f(x) solution
y
= -

D
E25 Demand
nur
:

PD=D(P Y) Dp<0 DYI0 , , ,

Say :
I SIP, A) Sp>0 SA ? O
=
, ,

Emilibrium
:

Q PP 05
= =
e =
(Y Al"
,
- > exo

I =
(P, P)" -
endo
Q D(P, 7) Q-D(PY) 0
(1)
Enteractions
=
=
-> :

(2) Q S(P A)
=
, -> Q - S(P , A) 0 = ·

q =

F(Y , A)
e
P =

Fz(Y A) ,

F(x1]) =

0
*
Differential system : dP-(DpdP+DydY) =
0

(Linear) 0
dP-(SpdP+SAdA)
=

dP-DpdP =
DydY
Separate
3
* exo
dP-SpdP- SAdA
from endo

Matrix form
II ][]= [?] [
* :

d DEx de
DFy
= -

the existence of F IR-RR2

Condition for
:

*
DD-Sp <O
IDE1fO -> 1! B) =-sp+Dp= (4) FO
IDE1=0
-

un
Since
"Jacobran" of the system =>
function felo) ,
fels exist
* Solve the diff system /"Computethe demateee

/Pers
TB) cost =

I
SpDY

[a]=
-

Sp-DP

A
Do
-

Sp-DP

d =
-

DFy-1DF d

d =

Df(x) de
G fe(Y
=

, A) - da =

2fzdY +EdA
24 2A
[DF] 1 [DEJ12
(t) (t)
dY> 0
Dy dO>0
do I dy ->
dA =

0 ->
-

Sp-Dip
CeterisParibus -(t)
(conditions Hy) dY ->dP>0
-> d =

Sp-P (H)
P S
- -

↑ ⑧
↳ Di
D

->
①
dY =

0
dO= dA =
-
Isn' dA >0
(t)
dA>0 Sp-Dp
(H)

dP = F2 dA Spt) d
-
= -
- < 0
2A Sp-PP
,+
S
P
S'
↓
8

↓ I &
D

->
①