Linear and Non Linear Equation for Economics Dr. Ananda Sabil Hussein.

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Presentation transcript:

Linear and Non Linear Equation for Economics Dr. Ananda Sabil Hussein

Demand and Supply

Deman and Supply

Example

Market Equilibrium Analysis (Related to Taxes and Subsidy)

National Income Determination

Y = C+I+G The income that households have to spend on consumer goods is no longer Y but rather Y – T (income less tax) is called disposable income Yd.

Total cost function, TC, relates to the production costs to the level of output, Q. Total cost consist of two types elements, fixed cost and variable cost. TC = FC + (VC) Q. The profit function is denoted by the Greek letter π and is defined to be the difference between total revenue, TR, and total cost, TC. Π = TR – TC

Practice