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Mathematical Methods For Economics: Preliminaries-II: Institute of Lifelong Learning, University of Delhi 1
Mathematical Methods For Economics: Preliminaries-II: Institute of Lifelong Learning, University of Delhi 1
Discipline Courses-I
Semester-I
Paper II: Mathematical Methods for Economics: Preliminaries-I
Unit-I
Lesson: Preliminaries-II
Lesson Developer: Sanjeev Kumar
College/Department: Dyal Singh College, University of Delhi
CONTENTS:
References
Introduction
According to R. Dedekind, "in science, what can be proved should not believed
without proof". Theorems are the most important outcome of the every branch of
mathematics. Proof of these theorems is the heart of mathematics and it distinguishes
mathematics from the other disciplines. In simple way, we can say, "a proof is a chain of
reasoning that establishes the truth of particular statement or a proposition. For example
Pythagoras theorem is an important proven result in this direction.
Example: Prove that the sum and product of any three consecutive even numbers is
always a multiply of 6 and a multiply of 8 respectively.
Proof: These three consecutive numbers must be multiply of 2, so, we can write
these number; 2N, 2N + 2 and 2N + 4. Where N is an whole number.
Let we take first case; the sum of three consecutive numbers are;
= 6N (N + 1)
= 6 (N + 1)
= 8N(N +1) (N + 2)
Direct Proof:
A direct proof is a mathematical argument that uses rules of inference to derive the
conclusion from the promises.
Proof: Le x and y are two even numbers and there exist m and n are integers, such
that
x = 2m and y = 2n
= 2(m + n)
Indirect Proof:
4x >3 x2 + 3
(iii) Contradiction Proof: suppose the statement is not true then there exist an
x such that;-x2 + 4x -3>0 and x>0
P(n + 1) is true, whenever P(n) is true i.e. P(n) is true implies that P (n + 1) is also
true, so P(n) is true for all natural numbers
Theorem: Prove that the sum of the first n odd natural numbers is n 2
i.e. 1+3+5+7+9+-----------------+(2n-1)= n2
The next odd number to be added both sides in above equation, we get,
Then, we conclude;
So, we can say it is also true for k+1. Then, it holds for all natural numbers n.
The above three methods of proof are the outline of the deductive reasoning.
Basically, deductive reasoning is based on consistent rules of logic and proof is the
important part of it. The second type reasoning is called inductive reasoning which is used in
many branches of science and social science. In this reasoning; the process to draw
Institute of Lifelong Learning, University of Delhi
5
Mathematical Methods for Economics: Preliminaries-II
conclusion is based on few observations. For example, If the price level has increased from
the last 20 years then price will also increase in next coming year. The above example
demonstrates inductive reasoning. In fact, it is no guarantee that price level will increase in
the coming year. So, inductive reasoning is not recognized as a form of proof in
mathematics.
x y
Then, xy
2
( x+ y) >4xy
2
Conclusion is true if
Problem Set
x2 + 3x -2 > 0 x>0
3. Use mathematical induction to prove that n<2n for all natural numbers n.
4. Prove that, the sum of square of three consecutive numbers and then subtracts two
is always a multiple of 3.
1+2+3+4+………………………………………………+n=1/2{n (n+1)}
Introduction
S = {a, b, c, d}
Types of Sets
Finite Set: A set having finite number of elements is called finite set.
Infinite Set: A set having infinite number of element is called Infinite Set.
Null (empty) Set: If there is no element in set then it is called Null Set. It is
denoted by (phi)
For Example: S = { }
The Universal Set: The set of all objects is called universal set and it is denoted U.
Equal Set: If the both set have same element then they called equal set.
For example: A = {1, 2, 3} and B = {3, 2, 1}, Then, A = B, A & B are equal set.
Let S = {1, 2, 3, 4, 5}
Proper Set: The proper set is the set of all subsets. It is denoted by P(S)
Example 2: S= {a, b, c}
=8
Venn Diagrams
It is the diagrammatical representation of set theory. It is easy way to
understand set theory.
AB =
Set Operations
AB (A Union B): AB is the set of those elements, which are, belongs to in set A or in
set B or in both sets;
AB = { x x A or xB}
AB (A intersection B): A common element between set A and set B are called AB.
AB = { x x A and x B}
AB = {2, 3}
Associative Law
Distribution Law
De Morgan’s Law
(AB)C = ACBC
Or, (AB)C = AC BC
(i) A ’ B = A B’ (F)
(ii) A B A B =B (T)
(iii) XY = XZ Y=Z (F)
(iv) A (BC) = (AB) (AC) (T)
X(YZ) = {2, 3, 4, 5}
Example 3: In a survey of reading habits of 100 students. It was found that 50 students
used the university library, 40 students had their own library, 30 students borrowed from
friends. It was also found 20 students used both the library i.e. university & own library, 50
students used their own library as well as borrowed from friends; while 10 students used
the university library and also borrowed from friends. How many students used all the
three sources of books?
Solution: Let A, B, and C the sources of books, i.e., library, own library and borrowed
from friends
Institute of Lifelong Learning, University of Delhi
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Mathematical Methods for Economics: Preliminaries-II
Given; n(ABC) =100, n(A) = 50, n(B)= 40, n(C)= 30, n (AB) = 20,
n(BC) = 50 and n(CC) = 10
= 100 – 50-40-30+20+50+10
= 60 students
Where x1 and x2 are quantities of goods and their respective prices are p1and p2
>0 and M>0 is income of the consumer. Illustrate in a diagram the sets;
Now, BC = C
A = {(x, y): x>0 for all y and y>0 for all x.}
A = {(x, y): x>0 for all y and y>0 for all x.}
PROBLEM SET
Answer:
(3) If x and y are the finite sets, then prove the followings:
(I) n(xy) = n (x) + n (y) – n (xy)
(II) n (x/y) = n (x) – n (xy)
Answer: 10 students
Answer: A B = {(1, ), (1, ), (1, ), (2, ),(2, ),(2, ),(3, ),(3, ),(3, )}
(6) Suppose A= {a, b, c} B= {a, b, c, d} and C = {a, b, c, d, e}, then prove that A B
and BC implies AC
(7) Asked, if you will vote for ‘x’ party the following responses are recorded
Male: 20 40 10
Female: 40 15 15
Youth (Just as 18 years) 20 10 10
Find; (i) n(A) (ii) n(AS) (iii) n (YN)’ (iv) n[A (YN)]
(8) (i) Given, A= {(x, y): x-y0}, B= {(x, y): |x| y0}, C= {(x, y): x y1}
(a)Set A= {(x, y): y IxI} (b) Set B = {(x, y): y 1/IxI} (c) Set AB
If the both set are equal i.e., A=B then R is called a binary relations on the set A
Notation:
Example:
Inverse Relation: Let R be a relation from A to B. Then inverse relation R-1 can
be defined as:
Solution: R = A× B
= {(a,1),(a,2),(a,3),(b,1),(b,2),(b,3),(c,1),(c,2),(c,3)}
(i) If y<x
(ii) If, y = x
R = {x: yA, y = x}
R {(1, 1), (2, 2), (3, 3)}
(ii) If x= 2y
R = {x, yA, x = 2y}
R= {2, 1}
Here domain and range are {2} and {1} respectively.
Example 3: Let A is set of real numbers and the relation R defined as:
Solution:
Example 4: If R1 and R2 are the transitive relation on a set A then R1R2 is transitive?
Solve by taking an example.
Here, we note that R1 and R2 are both transitive but R1 R2 is not transitive.
Examples 5: Suppose A= {, β, }, B= {1,2,3,4} and C = {a, b, c, d}, find R2oR1
PROBLEM SET
1. Let xQy is a relation based on the set of integers, given that 2x-y = 1, then prove
that the relation is not reflexive.
2. Let xRy is the relation of set of real numbers such that x/y=2. Then describe the
relation R2. Is the relation reflexive?
3. If the relation R from A to B is given by
R = {(x, y): x, y A×B, x = 2y+1}, graph the relation.
4. If x and y are the set of all real numbers then explain why the statement
y= |x| - 1 and y = x2 -1 give the same relation?
{Hint: x is the absolute value and it taken always positive}
Functions: A function from a set A to a set B is rule that assigns a unique element in B to
each element A.
xR y or yRx or y = f(x)
Solution:
Types of function
1 1
f ( x) & g ( x) 2
x x
Range ® = [0,)
Let y = f (x) = x3
Or f (-x) = -f (x)
y = f(x) = logx
Example: In the rule that assign to each of the 50 students in a class his marks out of a
maximum of 100 marks a function? If yes, is the function one to one?
Solution: Yes,
This function is also one to one function because every student gets unique
marks out of 100 marks.
Note: The detailed discussion about the functions is given in next chapter.
PROBLEM SET
ANSWERS
REFRENCES
Allen, R.G.D, Mathematical Analysis for Economists, London: Macmillan and Co. Ltd
Chiang, Alpha C., Fundamental Methods of Mathematical Economics, New York: McGraw Hill
Carl P. Simon and Lawrence Blume, Mathematics for Economists, London: W .W. Norton & Co.
Michael Hoy, John Livernois, Chris Mckenna, Ray Rees, Thantsis Stengos, Mathematics for
Economists, Addison-Wesley Publishers Ltd.