Math 135 Business Calculus Spring 2009

Class Notes
1.3 Average Rates of Change
Consider a function y = f (x) and two input values x1 and x2 . The change in input, or the change in
x, is
x2 − x1 .
The corresponding change in output, or the change in y, is
y2 − y1 = f (x2 ) − f (x1 ).
DEFINITION OF AVERAGE RATE OF CHANGE
The average rate of change of y = f (x) with respect to x, as x changes from x1 to x2 , is the ratio of
the change in output to the change in input:
y2 − y1 f (x2 ) − f (x1 )
=
x2 − x1 x2 − x1
where x1 6= x2 .

If we look at the graph of the function, then

the average rate of change will equal the slope
of the line passing through the points P (x1 , y1 )
and Q(x2 , y2 ). The line passing through P and
Q is called a secant line.

EXAMPLE The graph in the figure shows a typical response to adversing. Aftr an amount a is spent
on advertising, the company sells N (a) units of a product. Find the average rate of change of N as a
changes
a) from 0 to 1 N

700

600

500
b) from 1 to 2
400

300

200
c) from 2 to 3
100

0 a
0 1 2 3 4

11
12 Chapter 1 Differentiation

DIFFERENCE QUOTIENTS AS AVERAGE RATES OF CHANGE

We can rewrite the average rate of
change of a function in a different no-
tation as follows. Instead of using x1
for an initial input, use x. From x,
we move h units to the second input
x2 = x + h. Then the average rate of
change is
f (x2 ) − f (x1 ) f (x + h) − f (x)
=
x2 − x1 (x + h) − x
f (x + h) − f (x)
=
h

DEFINITION OF DIFFERENCE QUOTIENT

The average rate of change of a function f with respect to x is also called the difference quotient. It
is given by
f (x + h) − f (x)
h
° ¢ ° ¢
The difference quotient is equal to the slope of the line from x, f (x) to x + h, f (x + h) .

EXAMPLE Let f (x) = x2 . Find the difference quotient when:

a) x = 5 and h = 3

b) x = 5 and h = 0.1

EXAMPLE Let f (x) = x2 . Find a simplified form of the difference quotient. Then find the value of
the difference quotient when x = 5 and h = 0.1.
 1.3 Average Rates of Change 13

EXAMPLE Let f (x) = x3 . Find a simplified form of the difference quotient.

EXAMPLE Let f (x) = 3/x. Find a simplified form of the difference quotient.