SEMINAR

PRESENTATION
 WHAT IS COMMON?

MAT HEMAT I C S ECONOMI CS

 MATHEMATICS IN
ECONOMIC PLANNING
MAT HEMAT I C AL E C ON O M I CS
ECONOMIC PLANNING
ECONOMI C PL AN N I N G I S A
R ES OURCE AL L OC ATI ON
MECHANI SM BAS E D ON A
COMPUTATI ON AL PR OCEDURE
FOR S OLVI NG A C ON S TRA I NED
MAXI MI ZATI ON PROBL E M
WI T H AN I TERATI VE PR OCESS
FOR OBTAI NI N G I TS S OLUTI O N.
MAT HEMAT I C AL E C ON O M I CS

It is a method of economics that utilizes math

principles and tools.
PRICING PACKAGE
It permits economists to construct precisely
defined models to draw exact conclusions.
It is used to make quantifiable predictions about
future economic activity.

 Importance of Mathematics
in Economics

1 TO STUDY CAU S E AN D E F F E CT RE L A TIO N SH IP :

The mathema ti c a l rel a ti on s h i p b et ween
demand f or X a n d i ts p ri ce i s wri t t en a s Dx
= f ( Px) .

2 TO ANALYZE MO R E VA RIA BL E S:
The appl i cat i on of th e ma t ri x met h od
makes anal y s i s ea s i er.

3 TO STUDY MAR GI N AL CO N CE P TS:

Di f f erenti al c a l c ul us i s u s ed t o d i s cus s t h e
mar g i n al conc ep ts th a t are common l y us ed
i n economi cs.
4 TO FI ND TH E S L O PE O F A STRA IGH T L IN E :
I t i s a l s o emp l o ye d i n t he
de t er mi na t i o n o f t he slo pe s o f
de ma nd a nd s up p l y cur v es
5 TO DETERMI N E T H E VA L U E S O F
ECONOMI C VAR I AB L ES :
The concept of i n teg ra ti on i s a ppl i ed i n
or d er to cal cul a te a g g rega t e v a l ues

6 TO EXPRESS ECO N O MI C P H E N O ME N A
ALGEBRAI CA L L Y :

Al g ebra i s us ed ex ten s i vel y i n econ omi cs

as can be seen i n mul ti - ma rk et or
g en eral equi l i bri um model s
THE ELEPHANT CURVE
THE ELEPHA N T C URVE, ALSO KNOWN
AS THE LAKN E R- MI L ANO V I C GRA P H O R
THE GLOBA L G ROWTH I NCI DENCE
CUR VE, I S A GR APH TH AT I LLUS TRATE S
THE UNEQUAL DI S TRI BUTI O N O F
I NCOME GR OWTH F OR I N DI VI DUA LS
BEL ONGI NG TO DI FFE R ENT I NCO M E
GR OUPS.
 OTHER APPLICATIONS

DET ERMI NATI ON OF PRI CE.

NAT I ONAL I N C OME C ALCULA TI O N.
FI XI N G OF I N TE RE S T RATE BY BO NUS .
GOVT. BUDGE T TO PL A N REV ENUE A ND EX P EN D I TU R E.
BAL ANCE OF PAYME N T S - EX P O RT & I M P O RT.
TO CENTRO L I N FL ATI O N & DEFLA TI O N.
TO PR OMOTE WE L FARE PRO GRA M ES .
DET ERMI NATI ON OF PRO FI T O R LO S S .
THANK YOU
END O F PRESENTATI O N