Unit 5, lesson 71

Integration in Economics, Ecology, and Physiology

How integrals measure consumer and producer surplus, the present value of income, changes in a renewable stock, blood flow and cardiac output, and what each model assumes.

  • Theory part 141
  • Practice part 142
  • Applications of Integration

A doctor wants to know how much blood a heart pumps per minute without opening the chest. A forester wants to know whether a cutting plan will leave the forest bigger or smaller in twenty years. Neither can measure the total directly, but both can measure a rate. Integrating the rate turns it into the total, as long as the model behind it fits the situation.

Key terms

Accumulation from measured rates

Definition If FF is differentiable on [a,b][a, b] and its rate of change F′=fF' = f is continuous there, the net change theorem gives

F(b)−F(a)=∫abf(t) dt.F(b) - F(a) = \int_a^b f(t) \, dt.

When ff is known only at measured times t0<t1<⋯<tnt_0 < t_1 < \dots < t_n, the integral is estimated by a Riemann sum or by the trapezoid estimate, the average of the left and right sums.

In plain words A rate tells you how fast something builds up. Add the rate over time and you get how much built up.

Example Water flows into a reservoir at these measured rates.

Time (h)0022446688
Rate (m3/h)(\text{m}^3/\text{h})40405252606056564848

The left sum is 2(40+52+60+56)=4162(40 + 52 + 60 + 56) = 416 and the right sum is 2(52+60+56+48)=4322(52 + 60 + 56 + 48) = 432. Their average estimates the inflow over the 88 hours as 424 m3424 \ \text{m}^3.

Consumer surplus

Definition Let the demand function p=D(x)p = D(x) give the price at which consumers would buy xx units, with DD continuous and decreasing on [0,X][0, X]. If the market sells XX units at price P=D(X)P = D(X), the consumer surplus is

CS=∫0X(D(x)−P) dx.\text{CS} = \int_0^X \big( D(x) - P \big) \, dx.

In plain words Some buyers would have paid more than the market price. Consumer surplus adds up what they saved.

Example Take D(x)=50−0.5xD(x) = 50 - 0.5x and X=40X = 40, so P=30P = 30. Then

CS=∫040(20−0.5x) dx=800−400=400.\text{CS} = \int_0^{40} (20 - 0.5x) \, dx = 800 - 400 = 400.

Producer surplus

Definition Let the supply function p=S(x)p = S(x) give the price at which producers would supply xx units, with SS continuous and increasing on [0,X][0, X]. At sales of XX units and price P=S(X)P = S(X), the producer surplus is

PS=∫0X(P−S(x)) dx.\text{PS} = \int_0^X \big( P - S(x) \big) \, dx.

At the market equilibrium, XX is the quantity where D(X)=S(X)D(X) = S(X).

In plain words Some producers would have sold for less than the market price. Producer surplus adds up what they gained.

Example With supply S(x)=10+0.5xS(x) = 10 + 0.5x and the demand above, 50−0.5x=10+0.5x50 - 0.5x = 10 + 0.5x gives X=40X = 40 and P=30P = 30. Then

PS=∫040(30−(10+0.5x)) dx=∫040(20−0.5x) dx=400.\text{PS} = \int_0^{40} \big( 30 - (10 + 0.5x) \big) \, dx = \int_0^{40} (20 - 0.5x) \, dx = 400.

Present value

Definition Suppose money arrives as a continuous stream at a rate of f(t)f(t) dollars per year for 0≤t≤T0 \le t \le T, with ff continuous, and interest is compounded continuously at a constant annual rate r>0r > 0. The present value of the stream is

PV=∫0Tf(t) e−rt dt.\text{PV} = \int_0^T f(t) \, e^{-rt} \, dt.

In plain words A dollar that arrives in tt years is worth e−rte^{-rt} dollars today, because that smaller amount would grow to one dollar by then. The integral discounts every bit of the stream and adds the results.

Example An income of 10001000 dollars per year for 55 years at r=0.05r = 0.05 has present value

∫051000e−0.05t dt=20000(1−e−0.25)≈4424 dollars,\int_0^5 1000 e^{-0.05t} \, dt = 20000 \left(1 - e^{-0.25}\right) \approx 4424 \ \text{dollars},

less than the 50005000 dollars paid in total.

Renewable resource models

Definition Let S(t)S(t) be the size of a renewable stock, such as timber or a fish population, that regrows at rate g(t)g(t) and is harvested at rate h(t)h(t), both continuous. Then S′(t)=g(t)−h(t)S'(t) = g(t) - h(t) and

S(T)=S(0)+∫0T(g(t)−h(t)) dt.S(T) = S(0) + \int_0^T \big( g(t) - h(t) \big) \, dt.

The harvest is sustainable over [0,T][0, T] when S(T)≥S(0)S(T) \ge S(0).

In plain words The stock goes up by what grows and down by what is taken. The integral of the difference gives the net change.

Example A forest holds 5000 m35000 \ \text{m}^3 of timber. It grows at g(t)=200+10tg(t) = 200 + 10t cubic meters per year and is cut at 250250 cubic meters per year. After 2020 years it holds

5000+∫020(10t−50) dt=5000+2000−1000=6000 m3.5000 + \int_0^{20} (10t - 50) \, dt = 5000 + 2000 - 1000 = 6000 \ \text{m}^3.

Blood flow

Definition Poiseuille’s law models steady laminar flow of blood through a straight cylindrical vessel of radius RR and length ll, with pressure difference PP between the ends and viscosity η\eta. The velocity at distance rr from the axis is

v(r)=P4ηl(R2−r2),0≤r≤R.v(r) = \frac{P}{4\eta l} \left( R^2 - r^2 \right), \qquad 0 \le r \le R.

A thin ring of radius rr and width Δr\Delta r has area about 2πr Δr2\pi r \, \Delta r, so the flux, the volume of blood per unit time, is

Q=∫0R2πr v(r) dr=πPR48ηl.Q = \int_0^R 2\pi r \, v(r) \, dr = \frac{\pi P R^4}{8 \eta l}.

In plain words Blood moves fastest along the center and not at all against the wall. Adding the flow through thin rings gives the total, and that total grows with the fourth power of the radius.

Example With η=0.027\eta = 0.027, R=0.008R = 0.008 cm, l=2l = 2 cm and P=4000 dyn/cm2P = 4000 \ \text{dyn}/\text{cm}^2,

Q=π⋅4000⋅(0.008)48⋅0.027⋅2≈1.19×10−4 cm3/s.Q = \frac{\pi \cdot 4000 \cdot (0.008)^4}{8 \cdot 0.027 \cdot 2} \approx 1.19 \times 10^{-4} \ \text{cm}^3/\text{s}.

Cardiac output

Definition In the dye dilution method, an amount AA of dye is injected into a vein near the heart, and the dye concentration c(t)c(t) is measured in an artery for 0≤t≤T0 \le t \le T, until the dye has passed. If cc is continuous, ∫0Tc(t) dt>0\int_0^T c(t) \, dt > 0, and the heart pumps at a constant rate FF, then all the dye passes the sensor, so

A=F∫0Tc(t) dtA = F \int_0^T c(t) \, dt

and therefore

F=A∫0Tc(t) dt.F = \frac{A}{\int_0^T c(t) \, dt}.

In plain words All the dye that went in comes out past the sensor. A strong heart washes it through quickly, so the area under the concentration curve is small.

Example Inject A=6A = 6 mg and suppose c(t)=0.5 t(10−t)c(t) = 0.5\,t(10 - t) mg per liter for 0≤t≤100 \le t \le 10 seconds. Then

∫0100.5 t(10−t) dt=0.5(500−10003)=2503,\int_0^{10} 0.5\,t(10 - t) \, dt = 0.5 \left( 500 - \frac{1000}{3} \right) = \frac{250}{3},

so F=18/250=0.072F = 18/250 = 0.072 liters per second, which is 4.324.32 liters per minute.

Model assumptions

Definition Each formula above is exact only for its model. Surplus assumes continuous demand and supply curves and a single market price. Present value assumes a continuous stream and a constant rate rr. Poiseuille’s law assumes steady laminar flow in a rigid straight tube. The dye method assumes the dye mixes fully, the output FF is constant, and no dye comes around a second time before TT.

In plain words The integral is only as good as the model behind it. Before trusting a number, ask whether the assumptions hold well enough.

Example By Poiseuille’s law QQ is proportional to R4R^4. If a vessel narrows by 10%10\%, the flux becomes 0.94≈0.6560.9^4 \approx 0.656 of its former value, about 34%34\% less. That large drop is what the model predicts, but a real artery is elastic and the flow pulses, so the true change may differ.

Check yourself

  1. Find the consumer surplus for demand D(x)=100−2xD(x) = 100 - 2x when 2020 units are sold.
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The price is P=D(20)=60P = D(20) = 60, so

CS=∫020(40−2x) dx=800−400=400.\text{CS} = \int_0^{20} (40 - 2x) \, dx = 800 - 400 = 400.
  1. What is the present value of 20002000 dollars per year for 33 years at r=0.04r = 0.04?
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The present value is

∫032000e−0.04t dt=50000(1−e−0.12)≈5654 dollars.\int_0^3 2000 e^{-0.04t} \, dt = 50000\left(1 - e^{-0.12}\right) \approx 5654 \ \text{dollars}.
  1. In a dye test 88 mg of dye is injected and ∫0Tc(t) dt=160 mg⋅s/L\int_0^T c(t) \, dt = 160 \ \text{mg} \cdot \text{s}/\text{L}. Find the cardiac output in liters per minute.
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The output is

F=8160=0.05F = \frac{8}{160} = 0.05

liters per second, which is 33 liters per minute.

How this lesson connects

It also uses context-specific modeling.