Why Study Mathematics?
The subject Economics deals with many quantitative variables and functions, in consumption,production,distribution and policy making. Hence, the mathematical methods would help economists to use the quantitative variables in a better way and to obtain accurate results.
The lengthy and descriptive economic contents can be clearly set in simple notationsin mathematical models for clear and easy understanding. For example, the number of pens demanded in a given time period in a Higher Secondary School is 200 when price is zero. This decreases by 10 for every Rs.1 rise in the price of pen. It is expressed mathematically as
Q = 200 - 10 P
, here Q is the quantity demanded and P is the price. Thus large information can be expressed and communicated with simple functions and equations.
Sir William Petty declared that he wanted to reduce political and economic matters in terms of number, weight and measure. He was the first one to use mathematics economics. The first known writer to apply mathematical method to economic problems was Giovanni Ceva (1711), an Italian.
1. Mathematical Methods help to present the economic problems in a more precise form.
2. Mathematical Methods help to explain economic concepts.
3. Mathematical Methods help to use a large number of variables in economic analyses.
4. Mathematical Methods help to quantify the impact or effect of any economic activity implemented by Government or anybody. There are of course many other uses.
Think and Do
Who is the father of Economics? Did he use any of the mathematical tools in his contributions? If yes, list out.
Find out the mathematical tools, which are used by you in your daily routine life.