Question 8
A quantity is Tasks
Derive a relative-differential formula for .
Estimate the signed percentage change if rises , falls , and rises .
Identify the dominant contribution.
Show solutionHide solution
Question 8 – Solution
Strategy. Divide the total differential by , or equivalently differentiate the logarithmic power structure.
Step 1: Relative differential Differentiating gives
Step 2: Percentage estimate Thus the predicted first-order percentage change is .
Step 3: Contributions The increase contributes , the decrease , and the increase . The term is individually largest, but the three first-order effects cancel exactly.