How Do You Find The Approximate Percentage Increase Of Say Y=x3 Resulting From An Increase Of 2% In X?


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amber Jhon answered
As Y and x are related with each other therefore, whenever, there will be a change in the value of x, there will be an obvious change in y. Now, as there is 2% change in x therefore, the new value will be x + 0.2x = 1.2x. Now putting this new value in the equation we will get,

y = x3
y =  (x + 0.2x)3
y =  (1.2x)3
y =  1.728x3

Now, change in y = 1.728x3 - x3

Change in y = 0.728x3

Percentage change in y = (0.728x3/x3)*100

Percentage change in y = (0.728x3/x3)*100

Percentage change in y = 72.8x3 %

thanked the writer.
Oddman commented
The last time I looked, 2% was .02, not 0.2. You would expect the change to be about 3*.02, or 6%. 1.02^3 = 1.061208, so the actual change will be 6.1208% ≈ 6.1%.

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