ABSTRACT
The analytical nature of economics requires drawing upon some mathematical techniques. This chapter outlines some of those basic tools. It provides: the formula for a straight line; understanding the slope of a line; simple differentiation; and solving simultaneous equations. The chapter covers straight lines and briefly discusses equations of curves. Some economic relationships are represented by equations that are not a straight line. Differentiation is a useful tool because economics is often concerned with marginal changes; in particular, they will make use of it when discussing elasticities and determining marginal revenue for a monopolist. Differentiation is also a useful way of finding the maximum or minimum of a function. Notice that when a function reaches its maximum or minimum, the slope of the function is zero.
