Topic 4: Indices and

Logarithms
Jacques Text Book (edition 4):
Section 2.3 & 2.4
Indices & Logarithms
 Indices
• Definition - Any expression written as an is
defined as the variable a raised to the power of
the number n
• n is called a power, an index or an exponent of a

• Example - where n is a positive whole number,

a1 = a
a2 = a × a
a3 = a × a × a
an = a × a × a × a……n times
Indices satisfy the following rules:
1) where n is positive whole number
an = a × a × a × a……n times
• e.g. 23 = 2 × 2 × 2 = 8

2) Negative powers…..
1
a-n = n
a
1
e.g. a-2 = 2
a
• e.g. where a = 2
• 2-1 = 1 or 2-2 = 1 = 1
2 2× 2 4
• 3) A Zero power
a0 = 1
e.g. 80 = 1

• 4) A Fractional power

1
a = an n

e.g. 1
9 =2 9 = 9 =3
2

1
83 =38=2
All indices satisfy the following rules
in mathematical applications
Rule 1 am. an = am+n
e.g. 22 . 23 = 25 = 32
e.g. 51 . 51 = 52 = 25
e.g. 51 . 50 = 51 = 5

m
a
Rule 2 = a m −n
23
an e . g .1 2
= 2 3− 2
= 2 1
=2
2
23
e . g .2 0
= 2 3− 0
= 2 3
=8
2
 Rule 2 notes…
________________________________
note: if m = n,
am m –n 0
then a n =a =a =1 2 3
e .g . =2 =2 3
3− 3 0
=1
2
________________________________
m
a
note: a
−n = a m – (-n) = a m +n
23
e.g . − 2 = 23−( −2 ) = 25 = 32
________________________________
2
−m
a 1
-m – n
note: = a n = m + n
a a
_________________________________
2−3 1 1
e.g . = 2 − 3− 2
= 2 −5
= =
22 25 32
R u le 3
m
(a )n = a m .n

e .g . ( 2 3 ) 2 = 2 6
= 64

R u le 4
a n. b n
= (a b )n
e .g . 3 2
× 4 2
= (3 × 4 )2 = 1 2 2
= 144

L ik e w is e ,
n
an ⎛ a ⎞
n = ⎜ ⎟
if b ≠ 0
b ⎝ b ⎠
e .g .
2
⎛ 6 ⎞
2
6
= ⎜ ⎟ = 2 2
= 4
⎝ 3 ⎠
2
3
Simplify the following using the
above Rules:
1) b = x × x
1/4 3/4

2) b = x ÷ x
2 3/2

3/4 8
3) b = (x )
2 3
x y
4) b = x 4 y
These are practice questions for you to try at home!
 Logarithms
A L o g a r ith m is a m ir r o r im a g e o f a n
in d e x
n
If m = b th e n lo g bm = n
T h e lo g o f m to b a s e b is n

If y = x n th e n n = lo g x y
T h e lo g o f y to th e b a s e x is n

e .g .
1000 = 103 th e n 3 = lo g 10 1 0 0 0

0 .0 1 = 1 0 -2 th e n – 2 = lo g 10 0 .0 1
 Evaluate the following:
1) x = log39
2) x = log42
the log of m to base b = n then m = bn the log of m to base b = n then m = bn
the log of 9 to base 3 = x then the log of 2 to base 4 = x then

Ö 9 = 3x
Ö 2=4 x

Ö 2 = √4 = 4 1/2
Ö 9=3×3=3 2

x = 1/2
Ö x=2
The following rules of logs apply
1 ) lo g b(x × y ) = lo g b x + lo g b y
e g . l o g 1 0 (2 × 3 ) = l o g 1 0 2 + l o g 1 0 3

⎛ x ⎞
⎜⎜ ⎟⎟
2) lo g b ⎝ y ⎠
= lo g b x – lo g b y
⎛ 3 ⎞
lo g 1 0 ⎜ ⎟ = lo g 1 0 3 − lo g 1 0 2
eg. ⎝ 2 ⎠

3) lo g b x m = m . lo g b x
e .g . l o g 10 3 2
= 2 lo g 1 0 3
From the above rules, it follows that
(1) logb 1 = 0
1x1
(since => 1 = b , )hence x must=0)
e.g. log101=0

and therefore,
( 1)
logb x = - logb x
1
e.g. log10 ( /3) = - log103
 And……..
(2) logb b = 1
1x
(since => b = b ,)hence x must = 1)
e.g. log10 10 = 1

(3) logb ( )
n 1
x = n logb x
 A Note of Caution:
• All logs must be to the same base in applying
the rules and solving for values
• The most common base for logarithms are logs
to the base 10, or logs to the base e (e =
2.718281…)
• Logs to the base e are called Natural Logarithms
• logex = ln x
• If y = exp(x) = ex
then loge y = x or ln y = x
 Features of y = ex
non-linear 8.00

always 7.00

positive 6.00

5.00

as ↑ x get
y=ex

4.00

↑ y and 3.00

↑ slope of 2.00

graph 1.00

(gets 0.00
0 0.02 0.05 0.1 0.15 0.2 0.25 0.5 0.75 1 1.25 1.5 1.75 2

steeper) x
 Logs can be used to solve algebraic equations where
the unknown variable appears as a power
An Example : Find the value of x
(4)x = 64
1) rewrite equation so that it is no longer a power
• Take logs of both sides
log(4)x = log(64)
• rule 3 => x.log(4) = log(64)
2) Solve for x
• x = log(64)
log(4)
Does not matter what base we evaluate the logs, providing the same
base is applied both to the top and bottom of the equation
3) Find the value of x by evaluating logs using (for example) base 10
• x = 1.8062 ~= 3
0.6021
Check the solution
• (4)3 = 64
 Logs can be used to solve algebraic
equations where the unknown variable
appears as a power
An Example : Find the value of x
200(1.1)x = 20000
Simplify
• divide across by 200
(1.1)x = 100
to find x, rewrite equation so that it is no longer a power
• Take logs of both sides
log(1.1)x = log(100)
• rule 3 => x.log(1.1) = log(100)
Solve for x
• x = log(100)
log(1.1)
no matter what base we evaluate the logs, providing the same base is applied both to the top and
bottom of the equation
Find the value of x by evaluating logs using (for example) base 10
2
• x= = 48.32
0.0414
Check the solution
• 200(1.1)x = 20000
• 200(1.1)48.32 = 20004
 Another Example:
Find the value of x
5x = 2(3)x
1. rewrite equation so x is not a power
• Take logs of both sides
log(5x) = log(2×3x)
• rule 1 => log 5x = log 2 + log 3x
• rule 3 => x.log 5 = log 2 + x.log 3

» Cont……..
2. S o lv e fo r x
x [lo g 5 – lo g 3 ] = lo g 2
⎛ 5 ⎞
ru le 2 = > x [lo g ⎜ ⎟ ] = lo g 2
⎝ 3 ⎠

lo g ( 2 )
x = lo g ( 5 )
3

Find the value of x by evaluating logs

3. using (for example) base 10

log( 2 ) 0.30103
x = log( 5 ) = 0.2219 = 1.36
3

4. Check the solution

5x = 2(3)x ⇒ 51.36 = 2(3)1.36 ⇒ 8.92
An Economics Example 1

Y= f(K, L) = A KαLβ

Y*= f(λK, λL) = A (λK)α( λL)β

Y*= A KαLβλα λ β = Yλα+β

α+β = 1 Constant Returns to Scale

α+β > 1 Increasing Returns to Scale
α+β < 1 Decreasing Returns to Scale

Homogeneous of Degree r if:

f(λX, λZ ) = λr f(X, Z) = λr Y
Homogenous function if by scaling all
variables by λ, can write Y in terms of λr
An Economics Example 2
Y = National Income = £30,000 mill in
1964. It grows at 4% p.a. In 1984, Y = ?

1964: Y=3
1965: Y = 3(1.04)
1966: Y = 3(1.04)2
1984: Y = 3(1.04)20
1984: logY = log{3×(1.04)20}
logY = log3 + log{(1.04)20}
logY = log3 + 20.log(1.04)
Evaluate to the base 10
logY = 0.47712 + 20(0.01703)
logY = 0.817788
Find the anti-log of the solution:
Y = 6.5733

In 1984, Y = £65733 mill

 Good Learning Strategy!
• Up to students to revise and practice
the rules of indices and logs using
examples from textbooks.
• These rules are very important for
remaining topics in the course.