Analysis of the Use and Application of Mathematics in Economics: Demand and Supply Functions

Andrew Satria  Lubis; Zulfan; Mutia Fitri  Chania; Ishbir Mujahid  Adha

doi:10.32734/jormtt.v6i1.17603

Analysis of the Use and Application of Mathematics in Economics: Demand and Supply Functions

Authors

Andrew Satria Lubis Management Department, Economics and Business Faculty, Universitas Sumatera Utara, Medan, 20155, Indonesia https://orcid.org/0000-0001-5443-3432
Zulfan Arabic Literature Study Program, Universitas Sumatera Utara, Medan, Indonesia https://orcid.org/0009-0008-5205-6790
Mutia Fitri Chania Management Department, Economics and Business Faculty, Universitas Sumatera Utara, Medan, 20155, Indonesia https://orcid.org/0009-0004-2275-4011
Ishbir Mujahid Adha Management Department, Universitas Sumatera Utara, Medan, 20155, Indonesia https://orcid.org/0009-0003-4037-180X

DOI:

https://doi.org/10.32734/jormtt.v6i1.17603

Keywords:

Mathematical Concept, Supply function, Demand function

Abstract

The aim of this study is to analyze how mathematics is used in economics in terms of the function of supply and demand, which is an important concept in the economy that explains the relationship between the price of goods or services and the quantity requested or offered. Using a mathematical approach, these concepts can be described more quantitatively and accurately, allowing for a more in-depth analysis of the functions of demand and supply. To determine the components that influence changes in supply and demand, mathematical models such as linear regression and elasticity analysis are used. In addition, the study examines how price changes affect market balance and how the functioning of supply and demand can be influenced by things that come from outside, such as government policies and the global economic situation. Research results show that analysis of the function of supply and demand using mathematical models gives us a better understanding of market dynamics. For example, analysis of demand elasticity shows how sensitive consumers are to price changes, and analysis of supply shows how prepared producers are for price changes. Policymakers and market players can make more strategic and informational choices by knowing these mathematical relationships. The study found that mathematics improved the predictability and accuracy of economic analysis and provided essential tools for good decision-making in various economic contexts.

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Published

2024-03-30

How to Cite

[1]

A. S. . Lubis, Zulfan, M. F. . Chania, and I. M. . Adha, “Analysis of the Use and Application of Mathematics in Economics: Demand and Supply Functions ”, J. of Research in Math. Trends and Tech., vol. 6, no. 1, pp. 16-23, Mar. 2024.

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Vol. 6 No. 1 (2024): Journal of Research in Mathematics Trends and Technology (JoRMTT)

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