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This lecture covers the concept of state variables and thermodynamic functions, discussing the choice of state variables and elastic and calorimetric coefficients. It also explores the differential of a function of multiple variables, the fundamental relation of thermodynamics, and the Legendre transformation to create new functions. Different functions like internal energy, enthalpy, free energy, and Gibbs free energy are analyzed in terms of their suitability for specific variables. The lecture emphasizes the importance of selecting appropriate state functions and variables for studying thermodynamic systems.