Learning Objectives for Section 14.1 Area Between Two Curves The student will be able to 1. Determine the area between a curve and the x axis , 2. Determine the area between two curves, and 3. Solve an application involving income distribution. Barnett/Ziegler/Byleen Business Calculus 11e 1 Negative Values for the Definite Integral If f (x) is positive for some values of x on [a, b] and negative for others, then the definite integral b a f ( x) dx is the cumulative sum of the signed areas between the graph of f (x) and the x axis. Areas above the x axis are positive, and areas below are negative. In this section we want find the (unsigned) actual area between a curve and the x axis or between two curves. This is never negative! Barnett/Ziegler/Byleen Business Calculus 11e y = f (x) B a A b a b f ( x) dx A B 2 Negative Values The (unsigned) area between the graph of a negative function and the x axis is equal to the definite integral of the negative of the function. A B b a [ f ( x) ] dx c b y = f (x) B a A b c f ( x) dx Barnett/Ziegler/Byleen Business Calculus 11e 3 Area Between Curve and x axis The area between f (x) and the x axis can be found as follows: For f (x) 0 over [a, b] (i.e. f (x) is above the x axis): Area = b a f ( x) dx For f (x) 0 over [a, b] (i.e. f (x) is below the x axis): Area = b a [ f ( x) ] dx Barnett/Ziegler/Byleen Business Calculus 11e 4 Example Find the area bounded by y = 4 – x2 ; y = 0, 1 x 4. Barnett/Ziegler/Byleen Business Calculus 11e A1 A2 5 Example Find the area bounded by y = 4 – x2 ; y = 0, 1 x 4. A1 A2 Area = A1 - A2 2 0 f ( x) dx 4 2 f ( x) dx x3 2 x3 4 4 x | 4 x | 3 0 3 2 8 – 8/3 – (16 – 64/3 – 8 8/3) 16 Barnett/Ziegler/Byleen Business Calculus 11e 6 Area Between Two Curves Theorem 1. If f (x) g(x) over the interval [a, b], then the area bounded by y = f (x) and y = g(x) for a x b is given by A a f ( x) g ( x) dx b f (x) A a Barnett/Ziegler/Byleen Business Calculus 11e b g (x) 7 Example Find the area bounded by y = x2 – 1 and y = 3. Barnett/Ziegler/Byleen Business Calculus 11e 8 Example Find the area bounded by y = x2 – 1 and y = 3. Note the two curves intersect at –2 and 2, and y = 3 is the larger function on –2 x 2. A 3 (x 2 2 2 1 ) dx 3x – x / 3 x 2 3 Barnett/Ziegler/Byleen Business Calculus 11e 2 32 10.67 3 9 Computing Areas Using a Numerical Integration Routine Suppose we want to find the area bounded by f ( x) e x2 g ( x) x 2 1 Barnett/Ziegler/Byleen Business Calculus 11e 10 Computing Areas Using a Numerical Integration Routine Suppose we want to find the area bounded by f ( x) e x2 g ( x) x 2 1 First, we use a graphing calculator to graph the functions f and g and find their intersection points as in the figure. We see that the graph of f is bell shaped and the graph of g is a parabola, and that f (x) > g(x) on the interval [-1.131, 1.131]. Barnett/Ziegler/Byleen Business Calculus 11e 11 Computing Areas Using a Numerical Integration Routine Then we compute the area by a numerical integration routine on a calculator. Barnett/Ziegler/Byleen Business Calculus 11e 12 Application: Income Distribution The U.S. Bureau of the Census compiles data on distribution of income among families. This data can be fitted to a curve using regression analysis. This curve is called a Lorenz curve. The variable x represents the cumulative percentage of families at or below the given income level. The variable y represents the cumulative percentage of total family income received. If we have absolute equality of income (every family has the same income), the Lorenz curve is y = x. Barnett/Ziegler/Byleen Business Calculus 11e 13 Application (continued) For example, data point (approximately) (0.4, 0.09) in the table indicates that the bottom 40% of families receive only 9% of the total income for all families. Curve of absolute equality y = x Lorenz Curve (0.4, 0.09) Data point (.6, .26) indicates that the bottom 60% of families receive only 26% of the total income, etc. Barnett/Ziegler/Byleen Business Calculus 11e 14 Application (continued) If we have absolute inequality of income (one family has all the income, the rest have none), the Lorenz curve is y(x) = 0 for x < 1, y(1) = 1. The maximum possible area between the Lorenz curve and the line y = x is ½, which occurs in the case of absolute inequality. That is, the area between the Lorenz curve and the line y = x is between 0 and ½. The Gini Index is two times the area between the Lorenz curve and the line y = x. It can take on values between 0 and 1. Barnett/Ziegler/Byleen Business Calculus 11e 15 Application (continued) Gini Index of Income Concentration If y = f (x) is the Lorenz curve, then Index of income concentration = 2 x 1 0 f ( x) dx A measure of 0 indicates absolute equality. A measure of 1 indicates absolute inequality. Barnett/Ziegler/Byleen Business Calculus 11e 16 Example A country is planning changes in tax structure in order to provide a more equitable distribution of income. The two Lorenz curves are: f (x) = x2.3 currently, and g(x) = 0.4x + 0.6x2 proposed. Will the proposed changes work? Barnett/Ziegler/Byleen Business Calculus 11e 17 Example (continue) Currently: Gini Index of income concentration = 2 3.3 1 x x 2.3 | 0.3939 2 [ x x ] dx 2 0 3.3 0 2 1 Future: Gini Index of income concentration = 2 1 0 [ x (0.4 x 0.6 x 2 ] dx 0.6 x 2 0.6 x 3 1 | 0.20 2 3 0 2 The Gini index is decreasing, so the future distribution will be more equitable. Barnett/Ziegler/Byleen Business Calculus 11e 18 Summary ■ We reviewed the definite integral as the area between a curve and the x axis. ■ We learned how to calculate area when the curve was below the x axis. ■ We learned how to calculate the area between two curves. ■ We learned about the Lorenz curve and the Gini index of income concentration. Barnett/Ziegler/Byleen Business Calculus 11e 19