The subject Economics deals with many quantitative variables and functions, in consumption,production,distribution and policy making.

**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.

Tags : Economics , 11th Economics : Chapter 12 : Mathematical Methods for Economics

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11th Economics : Chapter 12 : Mathematical Methods for Economics : Why Study Mathematics? | Economics

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