Mathematics for Economics

Euncheol Shin

Kyung Hee University

[email protected]

Lecture 4

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Recall

Functions

Definition

Injective and surjective functions

Inverse function

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Outline

A brief introduction to number systems

Natural numbers (N) and integers (Z)

Rational numbers (Q)

Real numbers (R)

Sequences in R

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Natural Numbers and Integers

The set of natural numbers:

N = {0, 1, 2, 3, . . . }

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Natural Numbers and Integers

The set of natural numbers:

N = {0, 1, 2, 3, . . . }

In other words, N is the set of nonnegative integers: N = Z+

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Natural Numbers and Integers

The set of natural numbers:

N = {0, 1, 2, 3, . . . }

In other words, N is the set of nonnegative integers: N = Z+

Z− = {0, −1, −2, −3, . . . } is the set of nonpositive integers

Z = Z+ ∪ Z−

[Figures Here]

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Rational Numbers
The set of intergers does not contain a multiplicative inverse

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Rational Numbers
The set of intergers does not contain a multiplicative inverse

For given two integers, we can operate + and ·

Thus, it makes sense to consider a simple linear equation like

2·x=1

However, we cannot solve this equation in Z

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Rational Numbers
The set of intergers does not contain a multiplicative inverse

For given two integers, we can operate + and ·

Thus, it makes sense to consider a simple linear equation like

2·x=1

However, we cannot solve this equation in Z

As you know, we solve those equations in Q:

nm o
Q = {the collection of all fractions} = | m, n ∈ Z and n 6= 0
n
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Rational Numbers

Proposition
For any two rationals p and q with p > q, there exists r ∈ Q such that
p > r > q.

[Proof Here]

Meaning: Q is dense!

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Rational Numbers

Proposition
For any two rationals p and q with p > q, there exists r ∈ Q such that
p > r > q.

[Proof Here]

Meaning: Q is dense!

Q is still not enough!

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Real Numbers

Consider the following example:

x2 = 2

This equation does not have a solution in Q

[Proof Here]

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Real Numbers

There are two rational number p and q such that p2 > 2 > q 2

We now know that there is no r ∈ Q with r2 = 2

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Real Numbers

There are two rational number p and q such that p2 > 2 > q 2

We now know that there is no r ∈ Q with r2 = 2

It is like there is a hole in the set of rational numbers!

Thus, we wish to complete Q by filling up such holes with new

numbers

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Real Numbers

There are two rational number p and q such that p2 > 2 > q 2

We now know that there is no r ∈ Q with r2 = 2

It is like there is a hole in the set of rational numbers!

Thus, we wish to complete Q by filling up such holes with new

numbers

Question: How do we formalize this idea?

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Real Numbers
Definition
A set S ⊆ R is said to be bounded above if there is a real number a
such that x ≤ a for all x ∈ S.

The number s∗ is said to be the supremum of S (or the least upper

bound of S) if s∗ is an upper bound of S and s∗ ≤ a for all upper
bounds of S.

[Figures Here]

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Real Numbers
Definition
A set S ⊆ R is said to be bounded above if there is a real number a
such that x ≤ a for all x ∈ S.

The number s∗ is said to be the supremum of S (or the least upper

bound of S) if s∗ is an upper bound of S and s∗ ≤ a for all upper
bounds of S.

[Figures Here]

Similarly, we define a set S is said to be bounded below if there

is a real number b such that b ≤ x for all x ∈ S

The number s∗ is said to be the infimum of S (or the greatest

lower bound of S) if s∗ is an upper bound of S and b ≤ s∗

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Real Numbers

Axiom
( The Completeness Axiom) Every nonempty subset S of R which is
bounded above has a supremum in R.

This is the main difference between Q and R

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Real Numbers

Axiom
( The Completeness Axiom) Every nonempty subset S of R which is
bounded above has a supremum in R.

This is the main difference between Q and R

Example: S = q ∈ Q | q 2 < 2 does not have a supremum in Q



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Real Numbers

Axiom
( The Completeness Axiom) Every nonempty subset S of R which is
bounded above has a supremum in R.

This is the main difference between Q and R

Example: S = q ∈ Q | q 2 < 2 does not have a supremum in Q



In this regard, R is called a complete ordered field

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

That is, S = {m · x |m ∈ N} is bounded above. (WHY?)

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

That is, S = {m · x |m ∈ N} is bounded above. (WHY?)

Then, sup S is a real number. (WHY?)

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

That is, S = {m · x |m ∈ N} is bounded above. (WHY?)

Then, sup S is a real number. (WHY?)

Since x > 0, sup S − x > 0 is not an upper bound of S. (WHY?)

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

That is, S = {m · x |m ∈ N} is bounded above. (WHY?)

Then, sup S is a real number. (WHY?)

Since x > 0, sup S − x > 0 is not an upper bound of S. (WHY?)

Thus, there exists m0 ∈ N such that m0 · x ≥ sup S − x.

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Real Numbers

Proposition (Archimedean Property)

Let x ∈ R++ and y ∈ R. Then, there exists n ∈ N such that y < m · x.

Proof.
Suppose not.

That is, S = {m · x |m ∈ N} is bounded above. (WHY?)

Then, sup S is a real number. (WHY?)

Since x > 0, sup S − x > 0 is not an upper bound of S. (WHY?)

Thus, there exists m0 ∈ N such that m0 · x ≥ sup S − x.

That is, sup S is not an upper bound of S. Contradiction! (WHY?)

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Real Numbers
Proposition (R is dense)
Let x and y be real numbers with x < y. Then, there exists q ∈ Q such
that x < q < y.

Proof.
By the assumption, y − x > 0.

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Real Numbers
Proposition (R is dense)
Let x and y be real numbers with x < y. Then, there exists q ∈ Q such
that x < q < y.

Proof.
By the assumption, y − x > 0.

By the Archimedean Property, there exists m ∈ N such that

m · (y − x) > 1.

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Real Numbers
Proposition (R is dense)
Let x and y be real numbers with x < y. Then, there exists q ∈ Q such
that x < q < y.

Proof.
By the assumption, y − x > 0.

By the Archimedean Property, there exists m ∈ N such that

m · (y − x) > 1.

Let n := min {k ∈ Z | k > m · x}.

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Real Numbers
Proposition (R is dense)
Let x and y be real numbers with x < y. Then, there exists q ∈ Q such
that x < q < y.

Proof.
By the assumption, y − x > 0.

By the Archimedean Property, there exists m ∈ N such that

m · (y − x) > 1.

Let n := min {k ∈ Z | k > m · x}.

Then, it follows that

m · x < n ≤ m · x + 1 < m · y.

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Real Numbers
Proposition (R is dense)
Let x and y be real numbers with x < y. Then, there exists q ∈ Q such
that x < q < y.

Proof.
By the assumption, y − x > 0.

By the Archimedean Property, there exists m ∈ N such that

m · (y − x) > 1.

Let n := min {k ∈ Z | k > m · x}.

Then, it follows that

m · x < n ≤ m · x + 1 < m · y.

n
Therefore, q := m is the desired rational number. (WHY?)
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Sequences

Definition
A sequence in a nonempty set X is a function f : N → X.

Instead of f , we represent a sequence in X as (x1 , x2 , . . . ) as

xn = f (n) for all i ∈ N

Simply, we also write (xn )∞

n=1

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Sequences

Definition
A sequence in a nonempty set X is a function f : N → X.

Instead of f , we represent a sequence in X as (x1 , x2 , . . . ) as

xn = f (n) for all i ∈ N

Simply, we also write (xn )∞

n=1

A sequence is said to be a real sequence if X = R

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Real Sequences

Definition
A sequence (xn )∞
n=1 is said to converge to x if for each ε > 0, there
exists N ∈ N such that
|xn − x| < ε for all n ≥ N .

x is called the limit of the sequence

We write xn → x as n → ∞ or lim xn = x
n→∞

A sequence is said to be diveregent if it is not convergent

[Figures Here]

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Real Sequences: Examples

(xn )∞
n=1 defined as xn =
1
n converges to zero

(xn )∞ n
n=1 defined as xn = (−1) is divergent

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Real Sequences

Proposition
Let x ∈ R be a real number. Then, there exists a sequence of rational
numbers, say (qn )∞
n=1 , such that qn → x as n → ∞.

[Proof Here]

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Real Sequences

Proposition
If (xn )∞
n=1 is a convergent real sequence such that xn → x and
xn → y, then x = y.

[Proof Here]

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Next Lecture

Sequences

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