Textbook of Mathematical Economics

Economics is a social science. It does not just describe what goes on in the economy. It attempts to explain how the economy operates and to make predictions about what may happen to specified economic variables if certain changes take place, e.g. what effect a crop failure will have on crop prices, what effect a given increase in sales tax will have on the price of finished goods, what will happen to unemployment if government expenditure is increased. It also suggests some guidelines that firms, governments or other economic agents might follow if they wished to allocate resources efficiently. Mathematics is fundamental to any serious application of economics to these areas. A strong relationship clearly exists between mathematics and modern economics; mathematics helps extend and formalize economic theory, and quantitative economic data influences the development and refinement of mathematical models. Mathematics allows economists to form meaningful, testable propositions about wide-ranging and complex subjects which could not be adequately expressed infirmary. This book introduces students to a variety of new mathematical tools and explains how to apply those tools to a broad range of economic problems. The book is a detailed study of each and every important aspect of subject. Each aspect is discussed in a systematic and rational manner. The important objectives of writing this book is to equip the reader with enough fundamental issues relating to different aspect of the subject. The method of presentation has ensured that a somewhat dry and difficult subject has been made extremely interesting and easy to understand.