BACHELORS WITH ECONOMICS AS MAJOR
4th SEMESTER
CREDITS: THEORY: 3; TUTORIAL: 1
ECO422J2 ECONOMICS _ MATHEMATICS FOR ECONOMICS
Course Description: This is a core course of 06 credits (01 credit for each unit with the last
two units as tutorials). The course starts with some basic concepts required for
understanding the essence of subject, followed by basic calculus with the topics such as
differentiation, partial differentiation, and integration. Overall, the focus of the course is to
disseminate knowledge, comprehension and skill among the students.
Course Objectives: To develop a solid foundation and understanding of mathematical tools
and techniques. The course enables the students to apply mathematical methods to solve
economic problems and analyse economic models.
Learning Outcomes: After completing this course, the student is expected to:
L01: Understand the concepts of sets and functions, including different types of functions
and their properties, and apply them to economic models and analysis.
L02: Analyse and apply calculus basics, including limits, continuity, differentiability, and
integration techniques, in economic contexts, and solve economic problems using these
tools.
L03: Apply the concepts of partial derivatives, marginal analysis, Lagrange multipliers,
to solve various optimization problems.
L04: Apply concepts of integration to calculate consumer’s & producer’s surplus.
Unit 1: Introduction to Mathematical Economics
Overview of Mathematical Tools in Economics; Mathematical Notation and Symbols
Used in Economic Analysis: Number System—Integers, Rational Numbers, Irrational
Numbers, Real Numbers and Imaginary Numbers; Gradient and Equation of Straight
Line, Parabola and Rectangular Hyperbola; Sets, Relation, Functions, and Their
Types and Properties.
Unit II: Differentiation Basics
Limits, Continuity, and Differentiability, Derivatives: Definition and Evaluation, and
Their Applications in Economics; Maxima and Minima Using First & Second order
Conditions.
Unit III: Multivariable Calculus
Partial Derivatives and Their Applications; Marginal Concept and Elasticities;
Constrained Optimization: Lagrange Multipliers; Total Differentials and Total
Derivatives; Euler’s Theorem.
Unit IV: Integration Basics
Integration: Indefinite Integrals and Definite Integrals, Evaluation and Their
Applications in Economics—Consumer’s and Producer’s Surplus.
Unit V: Tutorial-I
Applications of differentiation in economics
Concave and Convex Function, exponential and logarithm function
Computing partial derivatives of functions and interpretation of partial derivatives as
rates of change with respect to various functions used in economics
Understanding the economic implications of positive, negative, and zero partial
derivatives; solving practice problems to compute partial derivatives.
Unit VI: Tutorial-II
Evaluate constrained and un-constrained optimization problems in economics
Using integration to calculate consumer’s and producer’s surplus
Evaluate production functions and utility functions.
Basic Readings
Main References
1. A.C. Chiang and Kevin Wainwright (2017). Fundamental Methods of
Mathematical Economics. McGraw Hill Education; Fourth Edition (1 July 2017)
2. K. Sydsaeter and P. J. Hammond (2016). Mathematics for Economic Analysis.
Pearson Education India.
3. G. Renshaw (2021). Maths for Economics. Oxford Publication (2021).
Additional References
1. E T. Dowling (2011). Schaum’s Outline: Introduction to Mathematical
Economics. McGraw Hill; 3rd Edition (16 November 2011).
2. G.S. Monga (2001). Mathematics and Statistics for Economists. S Chand; 2nd
Edition (12 April 2001).
3. M. Roser (2003). Basic Mathematics for Economists. Routledge; 2nd Edition (13
March 2003).
4. O. Levin (2015). Discrete Mathematics: An open Introduction. CreateSpace
Independent Publishing Platform, 1st Edition (2015).
5. T. Bradley (2013). Essential Mathematics for Economics and Business. Essential
Mathematics for Economics and Business.
