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Mathematics for Business and Economics

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 Mathematics
for
Business and Economics

( x2  x1)2 + ( y2  y1)2
f ´(x) = = and =

Y=mX+C &

Akim M. Rahman, Ph.D. (OSU, USA)

 Mathematics
for
Business and Economics

Akim M. Rahman Ph.D. (OSU, USA)

Year 2020

Print Your Books

Publisher
Social and Economic Research Institute (SERI)
Registration No.: S – 12707; www.seribd.org
Imprint
Any part of this book is subject to trademark, brand or patent protection and is
trademarks or registered trademarks of its respective holders. The use of brand names,
product names or product descriptions etc. is no way to be reconstructed to mean that
such names may be regarded as unrestricted in respect to trademark and brand
protection legislation and could thus be used by anyone.

Publisher:
Print Your Books
Shop # 55, Block # C
Bakusha Market, Nilkhet
Dhaka 1000
BANGLADESH

Printed at: see last page

ISBN: 978-0-9557163-0-0

Copy right@ Dr. Akim Rahman

Copyright @ 2020

Social and Economic Research Institute (SERI)

Registration No.: S – 12707; www.seribd.org

H # 213 / Ka, R # 11, Suite # A– 7

ANZ Properties Springfield
(Outside Gate # 3, Niketon)
Gulshan 1, Dhaka 1212
BANGLADESH

Price: TK 350.00, US $ 25.00

 LEGAL & DISCLAIMER

Mathematics for Business and Economics

Lecture Note, Math Examples and Exercises for Practices

Akim M. Rahman, Ph.D. (USA)

Copyright @ [Dr. Akim M. Rahman]

Social and Economic Research Institute (SERI)

Registration No.: S – 12707; www.seribd.org

H # 213 / Ka, R # 11, Suite # A– 7

ANZ Properties Springfield
(Outside Gate # 3, Niketon)
Gulshan 1, Dhaka 1212
BANGLADESH

All rights reserved. No part of this book may be reproduced in any form without
permission in writing from the publisher except in the case of brief quotations
embodied in critical or reviews.

Cover: Dr. Akim M. Rahman

Book Design: Dr. Akim M. Rahman

Font & Page Makeup: Lavina Moureen Zaman, Librarian, SERI

Photographer: Sujana Salvin (B.Sc. in EEE, BUET), Asst. Engineer, PGCB

Print Your Books

Shop # 55, Block # C
Bakusha Market, Nilkhet
Dhaka 1000
BANGLADESH

Registration No.: S – 12707

Through Social and Economic Research Institute (SERI)
 Table of Contents

Page
Dedication & Acknowledgement v
Preface vi
Why this book: A textbook of Mathematics for Business and Economics?
vii
Chapters

Chapter 1: Algebraic Expression 1-5

Chapter 2: Functions 6 - 12
Chapter 3: Equations 13 - 23
Chapter 4: Coordinates 24 - 39
Chapter 5: Geometry 40 - 57
Chapter 6: Sets Theory 58 - 77
Chapter 7: Differentiation / Derivatives 78 - 91
Chapter 8: Matrices 92 - 108
Chapter 9: Integration 109 - 118
Chapter 10: Logarithm 119 - 125
Chapter 11: Forecasting Fundamentals to Business & Economics 126 - 130
Chapter 12: Graphs / Charts 131 - 133
A Mixed Math Problem Set 134 - 147

Bibliography
 Dedication & Acknowledgement

I dedicate this work in the name of my

beloved late father,
Md. Azher Ali.
He was my First Teacher in mathematics.
My father could have been proud today.
He could have reviewed this work.

On author’s Thank You Note opportunities, I acknowledge that I have received

advantages from the selfless thinking of my sister, Dr. Sabera Yasmin who resides
with her own lovely family near to my place. She has ensured, with the help of two
house-helps, making available all delicious foods including tea or coffee to my
reading-desk on a timely fashion. This has facilitated me investing extra hours for
completion this book within the timeframe as it was planned in my hectic schedule.

Thus I say to my sis “Thank you Mother Teresa” for your generosity in a fashion of
thoughtful actions in multi-faucets.

----------------------------------------------
Akim M. Rahman, Ph.D. (OSU, USA)
January 20, 2020
 Preface

A major challenge in writing a book on mathematics is to select appropriate topics and

then present them with the necessary clarity. Another challenge is to motivate students
in business and economics to study topics by convincingly demonstrating their power
to deal with problems in areas of business and economics. These must be done without
sacrificing anything in terms of the rigor and correctness of the mathematics itself.

Keeping this in mind, the goal of this book is to help preparing students for academic
courses: Mathematics for Business & Economics and Fundamental of Mathematics
and then for the mathematical rigor of graduate economics by putting emphasis on its
application. Specifically, mathematics is the backbone of economics and business in
the sense that it forces learners to be very explicit about his or her assumptions and
how s/he proves results by writing mathematical models.

Furthermore, it helps establishing quantitatively causal links and to forecast the effects
of policies and other economic phenomenon under conditions we might observe x
causing y but also to what degree x can affect y. Particularly, calculus and dynamic
programming for example enable economists to show how agents optimize their
decisions over a time horizon and with uncertainty. Applications of mathematics in
business and economics require the individuals to be creative and proficient in
application of math techniques. It would not be overstated saying that without
mathematics, all we could do is claim x causes y and not be able to show how it occurs
except through vague wording and will still be unable to provide precise predictions as
to how it works. Definitely, Mathematics is a problem solving subject and the key to
succeeding in Mathematics is not to study Mathematics but working on mathematical
problem solving. That raises question: what would be my advice on success?

Answering question posed, I would suggest, in class, you simply need to pay attention
to all work examples as it is expected to be shown by your class-teacher or from this
textbook. And then you put your acquired knowledge into your solution working,
covering a myriad variety of problems expected to be taken out from this course-book,
all on your own. This textbook contains over 300 math-problems derived from subject
areas of business & economics. Thus utilization of this book can serve you in multi-
faucets: train you on the application of math-techniques, enhance your proficiency in
the subject areas, which can be instrumental in your endeavors for better outcome.

Finally, it is expected that students find this book useful as a guide to what they should
expect to achieve; and professionals find this book as a resource in their professional
endeavors.

----------------------------------------------
Akim M. Rahman, Ph.D. (OSU, USA)
January 20, 2020
 Why this book: A textbook of Mathematics for Business and Economics?

Knowledge of mathematical methods, especially, proficiency in Mathematics for

Business and Economics, has become a prerequisite for students those wish to grasp
economic & business phenomenon domestically or globally. Underpinning the
importance of the course, many experts in the subject area have written many books
with one common goal that is it can be helpful to users in their endeavors. Mine is no
exception. Moreover, the articulation of this book makes it to be unique based on my
attempts in this book addressing the ongoing concerns / questions: how much math do
the students majoring business or economics need for succeeding in their endeavors?
Do these students need proficiency in math theories or do they just need proficiency in
the application of mathematical methods? Do these students, in general, have
backgrounds in mathematics, I mean, in calculus, algebra, matrices and geometry?
Can effective application of math-techniques in subject areas of business and
economics make these courses to be technical meeting the 21st Century needs?

Addressing the concerns or questions posed, keeping the goals in mind, my

emphasis is on application of math-techniques, not math-theorems & its elaboration.
In this approach, meeting the 21st Century needs when it come the arena of business
and economics, this book has captured applications of algebra, linear equations,
matrix algebra in measuring revenue, costs, profit and equilibrium price & quantity
in market. Capturing consumer & producer surpluses, social gain / losses, elasticity,
utility or satisfaction measurement, decision analysis and policy diagnosis, this book
has captured the applications of various math-techniques. They are: coordinates &
geometry and the basics of calculus namely differentiation, integration, logarithm
and forecasting fundamentals to business. Rather emphasizing theories, efforts have
been invested in this book on applications of mathematical models where exercises
have been included so that it can be instrumental to students and professionals. This
approach makes this book to be exceptional from other-one written for courses
namely: Mathematics for Business & Economics and Fundamental of Mathematics.

This book not only presents the fundamentals of mathematics, but also it shows how
mathematics is applied, especially, in business economics. Thus, this resource has
been created with goals in mind. They are: accessibility, affordability and
customization for ensuring facilitation for student engagement - all while encouraging
learners toward high levels of learning globally. Professionals, Instructors and students
alike will find that this book offers a strong foundation of math-techniques application.

With this understanding, I take liberty here to cite one of over 300 math-examples from this textbook.

Suppose other day, Miss Bangladesh went to buy a dress in Basundara City Market. Before fixing price, seller
and buyer had eye contact and buyer clicked one eye and smiled targeting the seller. Seller supplied the dress
demanded by the Beauty Queen with smiley face. Later seller was interviewed and it was his highest
happiness & excitement in life. Based on interview-outcome & knowledge in Mathematics for Business and
Economics, you interpreted seller’s pleasure & excitement in a form of equation S = 5000x – 0.50x2.
Question is: what was the price of the dress in the market?

Answer is: S = 5000x – 0.50x2 or = 5000 – x = 0  x = 5000  price equivalent to TK5000.00

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