To understand the application of mathematics in economic theory.
Basics of a mathematical model; Functions and their types. Demand and supply functions, Cost and revenue functions, Consumption function, IS & LM functions; Multivariate functions-Market equilibria.
Fundamentals of matrix algebra; properties of determinants; solving equations by inverse matrix method and Crammer’s rule; Application: Input-output analysis.
Rules of simple differentiation, higher order derivatives, concavity and convexity, maxima, minima and point of inflection, Partial derivatives; unconstrained and constrained optimization, Use of derivatives in economics
Concept of integration, simple rules of integration, definite integral, Application of integration - Consumer’s surplus, producer’s surplus; cost, revenue, demand and consumption/ saving functions.
Basic Concepts, formulation of LP problem, basic feasible solution and optimal solution, graphical and simplex methods; concept of primal and dual.
Game Theory