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Each year approximately 90,000 high school students achieve a 4 or a 5 score on the Advanced Placement Calculus Examination (AB or BC).

Those blessed with a working knowledge of calculus are prepared to absorb the basic analytical framework of economics by a much easier route than those who lack this background. I dedicate this book to my family Adrienne Goolkasian Lovell Leslie and Kenneth Chausse: Nathaniel, Colleen, Laurel Stacie and Steve Markoski: Michael, Andrew, Alexander George Lovell and Carrie Cihak Martin Lovell and Sharon Hunter: Mica This page intentionally left blank Preface How should one approach the study of economics? There is no one answer to this question because the appropriate learning style depends in large measure upon the reader’s prior training and interests. In this case permission to photocopy is not required from the publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher. Copyright © 2004 by World Scientific Publishing Co. L68 2004 330.01'515-dc22 2004052464 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Includes bibliographical references and index.

5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401–402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Economics with calculus / Michael C. CHENNAI This page intentionally left blank Published by World Scientific Publishing Co.Economics with CalculuszyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONM Economics zyxw with Calculus Michael C Lovell Wesleyan University, USA W World Scientific NEW JERSEY

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