Mathematical Methods for Economics-I

Paper Code: 
ECO 112
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To introduce mathematics as a tool to elucidate economic theory.

12.00
Unit I: 
Preliminaries

Basics of a Mathematical Model; Real-Number System; Inequalities and absolute Values; Concept of Sets; Relations and Functions; Types of Functions; Functions of two or more variables; Exponents; Polynomials; Binomial Theorem.

12.00
Unit II: 
Equations and Graphs

Linear Equations and Graphs-slopes, intercepts, the slope-intercept form; Determining the equation of a straight-line; Quadratic Equation versus quadratic Function; Systems of equations-Solution by Elimination of Variables, Graphical Solution, Equilibrium Analysis in Economics.

12.00
Unit III: 
Matrix Algebra I

Types of matrices; Matrix Operations; Commutative, associative and distributive laws; Minors and cofactors.

12.00
Unit IV: 
Matrix Algebra II

Determinants and their properties; Crammer’s rule for solving linear equations; Inverse of a matrix; Solving linear equations with an inverse matrix.

12.00
Unit V: 
Concept of Derivatives

Nature of Comparative Statics; Rate of change and the derivatives; Derivatives and the slope of a curve; Concept of Limit; Limit Theorems; Continuity and Differentiability of a Function.

Essential Readings: 
  1. Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics  ( Fourth Edition), McGraw Hill, 2005
  2. Dowling, E. T. (1993), Schaum’s Outline of Theory and Problems of Mathematical Methods for Business and Economics, McGraw Hill.
References: 
  1. K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.
  2. Allen, R.G.D. (1974), Mathematical Analysis for Economists, Macmillan Press, London.
  3. Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, New Delhi.
  4. Yamane, Taro (1975), Mathematics for Economists, Prentice Hall of India, New Delhi.
Academic Session: