Mathematical Methods for Economics-II

Paper Code: 
ECO 212
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

1.      To develop an understanding of the use of differential calculus in respect of multivariable functions. 

2.      To interpret the concepts of indefinite and definite integrals.

3.      To acquaint the students with the technique of linear programming and its applications.

12.00
Unit I: 
Calculus of Multivariable Functions

First- and second-order partial derivatives; Total Differentials; Optimization- Unconstrained and constrained (Lagrange-Multiplier Method); Applications in Economics 

12.00
Unit II: 
Integral Calculus I (Indefinite Integrals)

Nature of Integrals; Basic Rules of Integration; Integration by substitution and by parts; Simple Economic Applications.

12.00
Unit III: 
Integral Calculus II (Definite Integrals)

Meaning of Definite Integrals; Definite Integral as an Area under a curve; Properties of Definite Integrals; Simple Economic Applications-Consumer’s and Producer’s surplus.

12.00
Unit IV: 
Difference and Differential Equations

First-Order Linear Difference equations: Solution, stability conditions, and applications – Lagged income determination model and Cobweb model; First-Order Linear Differential equations with constant coefficient and constant term.

12.00
Unit V: 
Linear Programming

Meaning, assumptions, formulation and graphical solution of a Linear Programming Problem.

Essential Readings: 

1.      Sydsaeter,K and Hammond, P. J., Mathematics for Economic Analysis. Pearson Educational Asia. 2017.

2.      Chiang, A. C. &Wainwright,K, Fundamental Methods of Mathematical Economics McGraw Hill Education. 4th Edition,2013.

References: 

1.      Schmidt, P.A. and Ayres F. Schaum’s Outlines of Theory and Problems of College Mathematics McGraw Hill, 3rdEdition ,2005.

2.      Dowling, E. T..Schaum’s Outline of Introduction to Mathematical Economics, McGraw Hill, 3rd Edition, 2011.      

Academic Session: