a. Verify that

This expression is called the relative rate of change. It expresses the rate of change of f relative to the size of f. Stephen B. Maurer denotes this expression by f̂ and notes that economists commonly work with relative rates of change.
b. Verify that

Interpret this equation in terms of relative rates of change.

c. In his article, Maurer uses the result of part b to solve the following problem: “Last year, the population grew by 1% and the average income per person grew by 2%. By what approximate percent did the national income grow?” Explain why the result from part b implies that the answer to this question is approximately 3%.

Transcribed Image Text:

d In f(x) dx f'(x) f(x)*