In this video I will explain how calculus is applied in life, one of which is the

application of calculus in economics. Following are several explanations of the

application of calculus in economics.

One application of calculus is in calculating speed and acceleration as a function

of distance and time. In banking, calculus is also used to calculate the minimum
payment for bills that can be paid. Calculus is also used in epidemiology to study
the spread of infectious diseases.

Not only that, the application of calculus in economics involves concepts such as
derivative and integral to analyze change and accumulation in an economic context.
For example, derivatives can be used to calculate elasticity of demand, while
integrals can help in estimating total production or national income. Calculus can
also be used in optimization analysis, such as determining maximum production
levels or minimum costs.

One example of the application of calculus in economics is in the analysis of

demand and income. Elasticity of demand, which measures the degree to which
quantity demanded changes in response to changes in price, can be calculated using
the concept of derivatives. For example, price elasticity of demand can be
estimated by the derivative of the demand function with respect to price.

Additionally, to analyze total revenue, integrals can be used. The marginal revenue
curve can be taken as an integral to get total revenue. It provides insight into
the total revenue generated by a particular level of production or sales.

Application of Calculus in Economics

Marginality Theory
Explains how small changes in an economic variable can have a big impact on the
final result.

Demand Function and

Offer
Can be described and calculated using integral concepts in calculus.

Thus, the application of calculus helps economists to gain a deeper understanding

of economic relationships and make more informed decisions.