CRITICAL BOOK REVIEW

ECONOMICAL MATHEMATICS

Arranged By :
NAMA : TIRA KRISTY PANE ( 4163312028 )
NAMA DOSEN : SUDIANTO MANULANG S,SI.M.SC

BILINGUAL MATHEMATICS EDUCATION

FACULTY OF MATHEMATICS AND NATURAL SCIENCES
STATE UNIVERSITY OF MEDAN
2018

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 PREFACE

Thank God we pray to the presence of God Almighty because of the blessing and

grace of His paper Task Mathematical Economics is CBR can be completed.

We would like to thank Our Lecturer of Mathematical Economics of, The foundation

has provided an explanation of the preparation of this paper. We also thank the

friends who have helped in the preparation of this paper.

If there are any shortcomings in this paper, we as the apologizers perform the task of

remembering we are still in the learning stage. We hope you lecturers always

provide direction and guidance for us for the future.

Thus this paper, the authors hope this paper can be useful for writers in particular

and general readers.

Medan, Mei 2018

Author

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 CONTENTS

Excecutive Summary ..............................................................................................................i

Preface ..................................................................................................................................... ii

Table of Content................................................................................................................... iii

Chapter I Introduction .......................................................................................................... 1

A. Rationalization The Importance of Critical Book Review ....................................... 1

B. Purpose ........................................................................................................................... 1

C. Benefit.............................................................................................................................. 1

D. Book Identity Reviewed ............................................................................................... 2

Chapter II Summary of Book............................................................................................... 3

Chapter III Discussion .......................................................................................................... 9

A. Discussion of The Content of The books......................................................9

B. Advantages and Disadvantages of Book ................................................................. 10

Chapter IV Closing .............................................................................................................. 12

A. Conclusion .................................................................................................................... 12

B. Recommendation ......................................................................................................... 12

References.............................................................................................................................. 13

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 CHAPTER I

PRELIMINARY

A. BACKGROUND

Linear function is a function that is very often used by economists and

businesses in analyzing and solving economic problems. This is because most

economic and business problems can be simplified or translated into linear

models.

In making the task of CBR this paper the authors make a comparison of two

books from the same topic of function, linear function and its application in

economics then these two books will be critiqued to show the shortcomings

and advantages of the contents of both books.

B. PURPOSE

1. To fulfill the assignment from our lectur,

2. To increase the authors knowledge about the topic in this book

3. To improve the authors written skills

4. To compare the idea of two books with same topic

5. To find the advantages and disadvantages the book.

C. BENEFIT

1. Finishing the assignment from the lecture

2. Increasing the knowledge about the topic

3. Improving the written skills

4. Knowing how to compare two books in same topic

5. Knowing how to find the advantages and disadvantages from book.

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 D. BOOK IDENTITY

1. The First Book

Title : Fundamental Methods Of Mathematical Economics

Edition :

Author : Alpha C. Chiang and Kevin Wainwright

Publisher : Gary Burke

Publication Year :

City Of Publication :

ISBN : 0-07010910-9

2. The Secound Book

Title : Basic Mathematics For Economist

Edition : Secound Edition

Author : Mike Rosser

Publisher : Routladge

Publication Year : 2003

City Of Publication : London

ISBN : 0-203-42263-5

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 CHAPTER II

SUMMARY OF THE BOOK CONTENTS

1. The first book ( fundamental Methods Of Mathematical Economics )

Since any ordered pair associates a y value with an x value, anycollection of

oedered pairs any subset of the cartesian product will constitutea relation

between y and x. Given an x value, one or more y values will be specified by that

relation. For convenience, we shall now write the elements of x x y generally as

(x,y) ratherthan as (a,b), as was done in cartesian product where both x and y

variables.

Translated into mathematical statements, the model can be written as

One way of finding a solution to an equation system is by successive elimination

of variabies and equations through substitution. However, in view of the

equating of 𝑄𝑑 and 𝑄𝑠 by the equilibrium condition,we can let Q = 𝑄𝑑 =𝑄𝑆 and

rewrite the model equifalently as follows :

Q = a – bP

Q = -c + dP

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 Thereby reducing the model to two equations in two variables. Moreover, by

substituing the first equation in (3.2), the model can be further reduced to asingle

equation in a single variable :

a – bP = -c + dP

or after subtracting (a + dP ) from both side of the equation and multiplying

through by -1, this result is also obtainable directly from equation first by

substituting the secound and third equations into the first. Since b + d not 0, it is

permissible to diide both sides by (b +d). The result is the solution value of P.

To find the equilibrium quantity that corresponds to the value P simply

substitute into either equatuion above and then solve the reslutingequation.

Substituting into the demand function for instance, we can get

2. The secound book( Basic Mathematics For Economist )

A relationship between the values of two or more variables can be defined as a

function when a unique value of one of the variables is determined by the value

of the other variableor variables.

This particular general form just tells us that quantity demanded of a good (Qd)

depends on its price (P). The ‘f’ is not an algebraic symbol in the usual sense and

so f(P) means‘is a function of P’ and not ‘f multiplied by P’. In this case P is what

is known as the‘independent variable’ because its value is given and is not

dependent on the value of Qd,i.e. it is exogenously determined. On the other

hand Qd is the ‘dependent variable’ becauseits value depends on the value of P.

Functions may have more than one independent variable. For example, the

general form production function

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 Q = f(K,L)

tells us that output (Q) depends on the values of the two independent variables

capital (K) and labour (L).The specific form of a function tells us exactly how the

value of the dependent variable isdetermined from the values of the independent

variable or variables. A specific form for ademand function might be

Qd = 120 − 2P

For any given value of P the specific function allows us to calculate the value of

Qd.

An inverse function reverses the relationship in a function. If we confine the

analysis to functions with only one independent variable, x, this means that if y is

a function of x, i.e.

y = f(x)

then in the inverse function x will be a function of y, i.e.

x = g(y)

(The letter g is used to show that we are talking about a different function.)

Mathematical functions are mapped out on what is known as a set of ‘Cartesian

axes’, as shown in Figure

The graph Figure in under shows the function y = 2 + 0.1x. The slope is obviously

the same along the whole length of this straight line and so it does not matter

where the slope is measured.

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 In mathematics the slope of a line is defined as
ℎ𝑒𝑖𝑔ℎ𝑡
Slope =
𝑏𝑎𝑠𝑒
The graphical solution method can be used when there are only two unknown

variables. It will not always give 100% accuracy, but it can be useful for checking

that algebraic solutionsare not widely inaccurate owing to analytical or

computational errors.

Example :

Solve for p and q in the set of simultaneous equations given previously in Section

p = 420 − 0.2q (1)

p = 60 + 0.4q (2)

Solution :

These two functional relationships are plotted in Figure 5.1. Both hold at the

intersection point X. At this point the solution values

p = 300 and q = 600

can be read off the graph.

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 CHAPTER III

DISCUSSION/ ANALYSIS

A. Discussion of The Content of The books

Both books discuss the function, the linear model that applies to the

economy.In the first book, discussed about function, functional models then

also discussed about partial market linear equilibrium modulus.

 Book I

Advantages Disadvantages

This book use the daily life In each of his topics not all given

language, so the readers can examples of problems to better

understand the content easily understand.

Any equation or formula will this book is difficult to understand

always have a derivative of the by beginners because the

formula and it is helpful explanation is not much

The tittle of the book shows all of

the content of the book

The content of the book shows

detailed

this book is filled with practice

about each topic

In the second book, discussed about Graphs and functions and also Graphs of

linear functions, Fitting linear functions, slopes and linear equations and

graphical solutes and subsites. Of course on the topic I discussed in this CBR

task in the second book much to discuss about this topic from the first book.

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  Book 2

Advantages Disadvantages

The book explain the concept less exercise questions on each

detailed topic

The formula in this a book explain in giving a less detailed example in

detailed explaining

All of the content of the book

arrange well

The tittle show all of the content of

this book

Using daily languange, it help

readers to understand the content

easily

this book on each topic provides

many examples of questions to

better understand.

B. The Advantages and disadvantages of the article

From the review book above, we can explain the comparison of the book 1

and book 2, shows in the table below:

Aspect Book I Book II

The Display In this article, the display In this book, the display

show not really good in of the article well. less

the part of funtion. attractive

The Language In this article, sometime This article using daily

use the terminology, but live language, so the

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 still easy to understand readers understand

because have related with easily

the content

The Content The content is fully The content is fully

equipped equipped

The structure In this book the structure In this book the structure

is less clear in the topic is good there are

for example the function examples of problems

title. And also there is no and discussion.

example of it.

The Completeness If we see from the If we see from the

content, this book is content, the book is

completeness completeness and there

are problems example

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 CHAPTER IV

CLOSING

A. CONCLUSION

From both books we can conclude the demand function indicates the

relationship between the quantity of product demanded by the consumer and

the price of the product. In economic theory it is explained that if prices rise

then the quantity of goods demanded goes down, and vice versa that if the

price falls. The offer function indicates the relationship between the number of

products offered by the manufacturer for sale at the price of the product. The

market of a kind of good is said to be in equilibrium if the quantity of goods

demanded in the market is equal to the quantity of goods offered.

B. RECOMMENDATION

Based on the discussions I have made to understand the basic level of the

application of linear function in the economy, the second book is the role

model. And to deepen the science of the second book is good to be a role model

in this topic.

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 REFERENCES

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