DEPARTMENT OF ECONOMICS AND SOCIAL SCIENCES

[Mathematics for Business and Economics]

[Mathematics is the Poetry of Logical Ideas Albert Einstein

Mathematics is the Music of Reason James Joseph Sylvester].

[Summer 2017]
[Section 6: UB 30203]
[Monday & Wednesday: 3.30 - 4.50 pm]

Instructor: [Fahmida Saadia Rahman] [UB 40606, fsaadia@bracu.ac.bd]

Office Hours: [Sunday & Tuesday (11.00-4.00 pm); Thursday (11.00-1.00 pm) and by
appointment]

I. Rationale:
The course provides an introduction to basic concepts and tools of mathematics that are frequently
used in the fields of Business and Economics. This is one of the core courses for BBA students
and provides a thorough analytical approach to higher level business and economics courses.

II. Course Aims and Outcomes:

Aims
It builds upon the mathematical theories like linear algebra, differential calculus and optimization
techniques which have wide varied applications not only in Economics (comparative static
analysis, elasticity, price discrimination etc.) but in several areas of business like marketing,
finance and operations.

Specific Learning Outcomes:

By the end of this course, students will be able to:
identify and define different business and economic problems using an analytical framework
and translate them into mathematical expressions and thus their quantitative skills will be
developed.
get introduced to statistical software and programs like EXCEL SOLVER to solve business
models (eg. linear programming models) and produce results and hence they will be aware
about the technology.
interpret the results and synthesize them into a conclusion or recommendation and this practice
will develop their communication skill.
have an overall insight of mathematical tools and techniques and their application on various
business and economic concepts and theories and in this way they will be able to think about
the global aspect.

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 develop critical thinking and numerical skills.

III. Format and Procedures:

There will be four quizzes among which best two will be considered. Similarly three assignments
will be taken and best two will be considered. There will be a lab assignment separately. Apart
from these students will face one midterm and the final exam during the semester.

IV. My Stance
The course is split into 24 lectures, each of which should take one hour twenty minutes sessions
to cover. The topics follow the structure of the textbook. For each topic, the power points will
follow the book quite closely, although in places they will deviate from the text where I feel
additional/alternative explanations are helpful.

BRAC University policy regarding minimum required attendance to sit for exams applies. If you skip
lectures you will miss out on the full power points and all the explanations that go with them, you
will miss out on the answers to in-class exercises, and you will either have to work very hard to
make up for it, or you will risk failing the exam. Use of mobile phones, pagers, iPods and any device
that may disrupt the class must be turned off during lectures.

The theory for each topic, along with proper applications in economics will be discussed in the
lecture classes. After finishing a chapter you should go through the problems presented at the end of
the chapter in the text. These problems will prepare you for the in-class quizzes and exams. In-class
multiple choice exercises and quizzes are a good guide to the types of questions you might face.
You will receive written feedback on your midterm exam, assignments, and on quizzes within 3
days of the exams. Make sure you read the comments and not just the mark!

V. Course Requirements: We will use basic mathematical and tools and economic concepts
that you have learned in MTA 101 and ECO1 101 BUT we will not have any time to go through
the basics.

1. Class attendance and participation policy:

5% marks are allotted for class attendance and participation. Students with less than 30%
attendance will not be allowed to appear in the final exam.

2. Course readings:

(a) Alpha C. Chiang, Kevin Wainwright, 'Fundamental Methods of Mathematical Economics', 4th Edition,
McGraw Hill, 2005 (Chiang)

(b) Edward T. Dowling, 'Schaum's Outline of Mathematical Methods for Business and Economics

VI. Grading Procedures:

(a) Quiz (15%)
(b) Assignment (20%)
(c) Mid Term (20%)
(d) Attendance (5%)
(e) Final (40%)

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VII. Academic Integrity
Each student in this course is expected to abide by the BRAC University Code of Academic
Integrity. Students are encouraged to study together and to discuss information and concepts
covered in lecture with other students. However, copying from another student or copying from
published or unpublished or electronic sources without appropriate citations will be considered as
plagiarism. Such dishonest practices will automatically result in students getting zero marks. During
examinations, you must do your own work. Talking or discussion is not permitted during the
examinations, nor may you compare papers, copy from others, or collaborate in any way. Any
collaborative behavior during the examinations will result in failure of the exam, and may lead to
University disciplinary action.

VIII. Accommodations for students with disabilities

I am available to discuss appropriate academic accommodations that may be required for student
with disabilities. Students are encouraged to register with Student Disability Services to verify
their eligibility for appropriate accommodations.

IX. Tentative Course Schedule

Lecturers Topics Chapters

Introduction to Mathematical Economics Chiang

Chapter 1
Economic Models: 2.1 Ingredients of a Mathematical
Model 2.2 The Real-Number System 2.3 The Concepts Chiang
of Sets 2.4 Relations and Functions 2.5 Types of Chapter 2
Functions 2.6 Functions of Two or More Independent
Week 1 & 2 Variables * Slope and Intercepts * Graph of Linear and
Non-Linear Functions
Equilibrium Analysis in Economics: 3.1 The Meaning of
Equilibrium 3.2 Partial Market equilibrium A Linear Chiang
Model 3.3 Partial Market equilibrium A Non-Linear Chapter 3
Model 3.4 General Market Equilibrium 3.5 Equilibrium
in National-Income Analysis 3.5 Equilibrium in National-
Income Analysis
Linear Models and Matrix Algebra: 4.1 Matrices and
Week 3, 4, 5 Vectors 4.2 Matrix Operations 4.4 Commutative, Chiang
Associative and Distributive Laws 4.5 Identity Matrices Ch 4 & 5
and Null Matrices 4.6 Transposes and Inverses 5.1
Conditions for Non-singularity of a Matrix 5.2 Test of
Non-singularity by use of Determinants 5.3 Basic
Properties of Determinants 5.4 Finding the Inverse Matrix
5.5 Cramers Rule 5.6 Application to Market and
National-Income Model
5.6 Application to Market and National-Income Model

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 Comparative-Static and the Concept of Derivative: 6.2
Rate of Change and the Derivative 6.3 The Derivative and Chiang
the Slope of a Curve Ch 6
Rules of Differentiation and Their Use in Comparative
Statics: 7.1 Rules of Differentiation for a function of One Chiang
Variable 7.2 Rules of Differentiation Involving two or Ch 7 & 8
More Functions of the Same Variable 7.3 Rules of
Week 6, 7, 8 Differentiation Involving two or More Functions of the
Same Variable(continued)
APPLICATION: Concept of Total, Marginal &
Average 7.4 Partial Differentiation 7.5 Application to
Comparative Static Analysis 7.6 Note on Jacobian
Determinant
Comparative-Static Analysis of General-Function
Models: 8.1 Differentials 8.2 Total Differentials 8.4
Total Derivatives 8.5 Derivatives of Implicit
FunctionsBalance and Output *J- Curve
Optimization: A Special Variety of Equilibrium
Analysis: 9.1 Optimum Values and Extreme Values 9.2 Chiang
Relative maximum and Minimum 9.3 Second and Higher Ch 9, 11,
Derivatives 9.4 Second-Derivative Test 12
Optimization: The Case of More than One Choice
Variable: 11.1 The Differential Version of Optimization
Conditions 11.2 Extreme Values of a Function of Two
Week 9, 10
Variables 11.4 Objective functions with More than Two
Variables 11.6 Economics Applications (*Problem of a
Multi-product Firm *Price Discrimination)
Optimization with Equality Constraints: 12.1 Effects of
a Constraint 12.2 Finding Stationary Values [Lagrange-
Multiplier Method] 12.3 Second Order Conditions
12.5 Utility Maximization and Consumer Demand 12.7
Least Cost Combination of Inputs
Exponential and Logarithmic Functions: 10.1 The Chiang
Nature of Exponential Functions 10.2 Natural Exponential Ch 10
Week 11 Functions and The Problem of Growth 10.3 Logarithms
10.4 Logarithmic Functions 10.5 Derivatives of
Exponential and Logarithmic Functions
Economic Dynamics and Integral Calculus: 14.1 Chiang
Dynamics and Integration Ch 14
Week 12 14.2 Indefinite Integrals (*The Nature of Integrals *Basic
Rules of Integration)
14.3 Definite Integrals 14.5 Some Economic Applications
of Integrals