ELEMENTARY

MATHEMATICS
FOR ECONOMICS
Catering the need of

Second year B.A./B.Sc. Students of Economics (Major)

Third Semester of Guwahati and other Indian Universities.

2nd Semester

R.C. Joshi

Nancy

M.A., M.Phil.
Formerly Head, P.G. Dept. of Mathematics
Doaba College, JALANDHAR

B. Tech.

VISHAL PUBLISHING CO.

Future for WINNERS

JALANDHAR DELHI

CONTENTS
1. LINEAR EQUATIONS
110
1. Introduction
1.1. Special Products
1.2. Definition of an Equation
1.3. Identity and Equations
1.4. Linear Equations
Exercise1
2. Economic application of linear equations in
one variable
Exercise2
3. Economic Applications
Exercise3
Questions VSA and MCQ
2. SYSTEM OF EQUATIONS
1124
1. Introduction
1.1. Simulataneous Linear Equations
1.2. Methods of Solving Simultaneous
Linear Equations
Exercise1
2. Business application of Linear Equations in
Two Variables
Exercise2
3. Market Equilibrium when demand and
supply of two commodities are given
Exercise3
4. Economic Applications of Linear Equations
4.1. Effect of Taxes and subsides in
Equilibrium Price and Quantity
Exercise4
Questions VSA and MCQ
3. QUADRATIC EQUATIONS
2542
1. Defination
1.1. To solve the Standard Quadratic
Equation
Exercise1
2. Equation reducible to Quadratic Equation
Exercise2
3. Equation of the form ax + b/x = c, where x
is an expression containing the variable,
may be solved by putting x = y.
Exercise3
4. Irrational Equations. An equation in which
the unknown quantity occurs under a radical
is called an irrational equation
Exercise4

5. Equation which can be put in the form

ax2 + bx + p ax 2 bx c + k=0 be solved by
putting

ax 2 bx c y .

Exercise5
6. Equation of type
ax 2 bx k ax 2 bx k = p, can be

solved by putting A =

ax 2 bx k ,

B = ax 2 bx k .
Exercise6
7. Reciprocal Equations
Exercise7
8. Simultaneous Quadratic Equations
Exercise8
9. Application in Economics
Exercise9
Questions VSA and MCQ
4. FUNCTION, LIMIT AND CONTINUITY
OF FUNCTIONS
4376
1. Introduction
1.1. Definition of Function
1.2. Image and pre-image
1.3. Domain
1.4. Real Valued Function
1.5. Types of Functions
1.6. Linear Homogeneous Function
1.7. Functions in Economics
1. Demand Function
2. Supply Function
3. Total Cost Function
4. Revenue Function
5. Profit Function
6. Consumption Function
7. Production Function
1.8. Value of a function at a point
Exercise 1
2. Limit
2.1. Left Limit
2.2. Definition : Left Hand Limit
2.3. Theorem on Limits
2.4. Methods of Finding Limit of a Function
Type 1. Method of Factors
Type 2. Method of Substitution

Type 3. Use of Binomial Theorem for any index.

Type 4. Rationlazing Method
Type 5. Evaluation of limit when x
Exercise 2
3. Some Important Limit
Exercise3
4. Continuity
4.1. Continuity Definitions 2
4.2. Type of Discontinuity of a Function
Illustrative Examples
Exercise4
Questions VSA and MCQ
5. SETS
77105
1. Introduction
1.1. Definition
1.2. Representation of Sets
1.3. Some Standard Sets
Exercise1
2. Types of Sets
2.1. Empty Set
2.2. Finite and Infinite Sets
2.3. Equal Sets
Exercise 2
3. Subset
3.1. Proper Subset
3.2. Singleton Set or Unit Set
3.3. Power Set
3.4. Comparable Sets
3.5. Universal Sets
Exercise3
4. Venn Diagrams
4.1. Operations on Sets
4.2. Union of Sets
Illustrative Examples
4.3. Definition
4.4. Some Properties of the Operation of
Union
4.5. Intersection of Sets
4.6. Definition
4.7. Disjoint Sets
4.8. Some Properties of Operation of
Intersection
4.9. Difference of Sets
4.10. Symmetric Difference of two Sets
4.11. Complement of a Set
4.12. Complement Laws
Exercise 4
5. Number of Elements in a Set
6. Economic Application of Sets

Exercise 5
Question VSA and MCQ
6. MATRICES
106135
1. Introduction
1.1. Matrix
1.2. Types of Matrices
Exercise 1
2. Sum of Matrices
2.1. Properties of Addition of Matrices
2.2. Scalar Multiple of a Matrix
2.3. Properties of Scalar Multiplication
Exercise 2
3. Product of Two Matrices
3.1. Zero Matrix as the Product of Two
non Zero Matrices
3.2. Theorem
3.3. Distributive Law
3.4. Associative Law of Matrix
Multiplication
3.5. Positive Integral Powers of a Square
Matrix A
3.6. Matrix Polynomial
Exercise 3
4. Transpose of Matrix
4.1. Properties of Transpose of Matrices
4.2. Special Types of Matrices
Exercise 4
Questions VSA and MCQ
7. DETERMINANTS
136174
1. Determinants
1.2. Determinant of a Matrix of order 3 3
1.3. Singular Matrix
1.4. Minor
1.5. Cofactors
Exercise 1
2. Properties of Determinants
2.1. To Evaluate Determinant of Square
Matrices
2.2. Type I
2.3. Type II
2.4. Type III
2.5. Type IV
2.6. Type V
Exercise - 2
3. Solution of a System of Linear Equations
3.1. Homegeneous System of Linear
Equations
Exercise - 3
Questions VSA and MCQ

8. ADJOINT AND INVERSE OF A MATRIX

175195
1.1. Theorem
1.2. (a) The Inverse of a Matrix
(b) Singular and Non-Singular Matrix
1.3. The Necessary and Sufficent Condition
for a Square Matrix to Possess its
Inverse is That | A | 0.
Exercise 1
2. Elementary Transformation
2.1. Symbols for Elementary Transformation
2.2. Equivalent Matrices
2.3. Elementary Matrices
2.4. Theorem
2.5. Inverse of a Matrix by Elementary
Transformation
2.6. Method to Compute the Inverse
Illustration Examples
Exercise 2
3. Rank of a Matrix
3.1. Steps to Determine the Rank of a Matrix
Exercise 3
Questions VSA and MCQ
9. SO LUTIO NS O F SIM ULTANEO US
LINEAR EQUATIONS
196210
1. Introduction
1.1. To solve simultaneous linear equations
with the help of inverse of a matrix
1.2. Criterion of Consistency
1.3. Type-I
1.4. Type-II
1.5. Type-III
Exercise 1

Questions VSA and MCQ

10. NATIONAL INCOME MODEL 211220

1. National Income Model

1.1. Solving National Income Model Using
Inverse Method or Matrix Method
1.2. Partial Equilibrium Market Model
1.3. Application of partial equilibrium market
model
Exercise
Questions VSA and MCQ
11. STRUCTURE OF INPUT OUTPUT TABLE
221237
1. Introduction
1.1. Characteristics of Input-Output
Analysis

1.2.
1.3.
1.4.
1.5.
1.6.
1.7.

Assumptions of Input-Output Analysis

Types of Input-output Models
Main Concept of Input-output Model
Input-output Analysis Techniques
Technological Coefficient Matrix
Steps to determine Gross Level of
Output and Labour Requirements
1.8. The Hawkins-Simon Conditions or
Viability Conditions of the Input-output
Model
Three Sector Economy
Exercise
Questions VSA and MCQ
12. DERIVATIVE
238289
1. Introduction
1.1. Definition
1.2. Another Definition
1.3. Differentiation by delta method
Exercise 1
2. Derivation of some standard functions
Exercise 2
3. Differentiation of product of two functons
Exercise 3
4. Differentiation of quotient of two functions
Exercise 4
5. Differentiation of a function of a function :
The chain rule
Exercise 5
6. If y = un, where u is function of x, then
dy
du
= nun1
.
dx
dx
Exercise 6
7. (a) If y = loga u, where u = f(x), then
dy
1
du
=
loga e
.
dx
u
dx
Exercise 7
8. (a) If y = au, where u is function of x, then
dy
du
= au log a
, where a is constant.
dx
dx
Exercise 8
9. Differentiation of Implicit Function
Exercise 9
10. Differentiation of Parametric Functions
Exercise 10
11. Differentiation of a function w. r. to another
function
Exercise 11

6. To show that

12. Logarithmic Differentiation

Exercise 12
13. Higher Derivatives
Exercise 13
Questions VSA and MCQ

n
[ f ( x)] f ( x ) dx

Exercise 6

13. PARTIAL AND TOTAL

DIFFERENTIATION
290311
1. Function of Two Variables
1.1. Partial Derivative
Exercise 1
2. Higher Order Partial Derivatives
2.1. Change of order of differentiation
Exercise 2
3. Homogeneous Functions
3.1. Linear Homogeneous function
Exercise 3
4. Properties of homogeneous functions
4.1. First property of homogeneous
function
4.2. Second property of homogeneous
function
4.3. Eulers Theorem (Property III)
Exercise 4
5. Total Differential
5.1. Method to Determine Total Differential
5.2. Total Derivative
Questions VSA and MCQ
14. INTEGRATION (WITH ECONOMIC
APPLICATIONS)
312360
1. Introduction
1.1. Constant of Integration
1.2. Basic Rules of Integration
Exercise 1
2. Integration by substitution
Exercise 2
3. To evaluate integrals of type

[ f ( x )]n 1
c, n 1.
n 1

f ( x)

ax b dx .

Exercise 3
4. Definite Integral
Exercise 4
5. To integrate an expression which involves
linear , Method is, put linear = y.
Exercise 5

7. To show that

f ( x )
dx = log | f (x) | +c.
f ( x)

Exercise 7
8. To show that

f (x )

f ( x ) dx

a f ( x)
c,
log a

where a is constant.
Exercise 8
9. Method of Partial Fraction
Exercise 9
10. Case II. Partial Fraction
Exercise 10
11. Case III. When the denominator contains
linear repeated factors
Exercise 11
12. Type IV. When denominator contains a
quadratic factor of the type x2 + a.
Exercise 12
13. Integration by parts
13.1. TYPE I. When integral of one of the
function is not known.
Exercise 13
14. Type II. The single function whose integral
is not known can also be integrated by
integration by parts.
Exercise 14
15. Type III. When integral of both the
functions is known, then we take polynomial
in x as first function.
Exercise 15

16. Type IV.

[ f ( x ) f ( x )

]e x dx f ( x )e x

Exercise 16
17. Application of Integration in Economics :
Marginal cost. total cost.
Exercise 17
Questions