MATHEMATICS AND ECONOMY

Made by: Lana Deverić; Koprivnica, CroatiaMentor: Mara Grašić

ECONOMICS

WHAT?

HOW?FOR WHO?

MICROECONOMICS

MACROECONOMICSconsumer analysis

based on consumer preferences

COMPANYINPUTS

GOODS

PEOPLE

competition between

companies or sellers

population

money

nowproduction

pay

before exchange of goods

MEAN OF EXCHANGE PAYMENT:

BUDGET CONSTRAINT AND UTILITY FUNCTION

Y

X0

C ( X , Y )

B ( X , 0 )

A ( 0 , Y )

u

Pa -> price of one apple = 1$Pp -> price of one pear = 2$M -> budget (money) = 10$ u -> utility function

M = Pa · X + Pp · Y Consumer spends all of his budget and maximizes his utility in point C.

Pa -> price of one apple = 1$Pp -> price of one pear = 2$M -> budget (money) = 10$ u -> utility function describes consumer’s preferences

DEMAND

• CONSUMER• NEEDS AND

PREFERENCES

CONSUMER NEEDS AND PREFERENCES

UTILITY FUNCTION SUBSTITUTION EFFECT

INCOME EFFECTINDIVIDUAL

DEMAND

INCOME LEVEL

POPULATION

PRICES OF RELATED GOODS

PREFERENCES

As the income rises, the number of bought cars also rises.

As the population rises, the number of bought cars also rises.

As the price of gas falls, the number of bought cars rises.

In rainy Seattle demand for umbrellas will be big, but what about sunny Phoenix?

DEMAND FACTORS:

MARKET

MAIN ROLES:to determine price of goods

PRICE value in

monetary terms

to exchange goods and

services

Mechanism by which buyers and sellers meet to:

SUPPLY AND DEMAND

AGGREGATE

INDIVIDUAL

SUPPLY: is the total amount of goods and services which companies are willing to produce and sell in a given period of time

DEMAND: is the total amount of goods and services that economy sectors are willing to spend in a given period of time

GLOBALISATION

P

Q0

equlibrium

AGREGATE DEMAND

AGREGATE SUPPLY

E

GDP : population = ~13 480(average budget)

Population of Koprivnica · yearly spent budget on

common products, clothes and shoes = ~ 125 000 000 $

(yearly spending of Koprivnica’s citizens on

common products, clothes and shoes)

POPULATION ( ~ 4 285 000)

OVERALL ECONOMY BUDGET (GDP) ( ~ 57 760 000 000 $) - yearly

AVERAGE BUDGET ( ~ 13 480 $) - yearly

AVERAGE BUDGET STRUCTURE ( 30%* spent on common products, clothes and shoes = ~ 4 050 $) - yearly

POPULATION OF KOPRIVNICA ( ~ 30 850)

YEARLY SPENDING OF KOPRIVNICA’S CITIZENS ON COMMON PRODUCTS, CLOTHES AND SHOES ( ~ 125 000 000 $)

HOW MANY SHOPS I PLAN TO OFFER ARE ALREADY

OPENED IN KOPRIVNICA?

Clothes shops: 20Shoe shops: 5Drug stores: 5

Grocery stores: 10

SUM OF ALL SHOP TYPES IN KOPRIVNICA

Clothes shops: 24Shoe shops: 8Drug stores: 8

Grocery stores: 12

HOW MANY SHOPS DO I PLAN TO OPEN INSIDE MY

MALL?

Clothes shops: 4Shoe shops: 3Drug stores: 3

Grocery stores: 2

MARKET SHARE ACCORDING TO SHOP TYPES:

Clothes shops: 16,67%Shoe shops: 37,5%

Drug stores: 37, 5%Grocery stores: 16,67%

0,375 + 0,1667 + 0,375 + 0,1667 = 1,0834 : 4 =

0,27085 · 125 000 000 $ = ~ 33 850 000 $

INVESTMENT PROJECT

WHAT?•Common goods, but not services•Shopping mall•Supermarkets•Cloth stores•Shoe stores•Drug stores

HOW?•Real estate•Investors•Contracts with brand owners•Self-project or group project?

FOR WHO?

•People (wide masses)

2016. 2017. 2018. 2019.1. CONSTRUCTION (-)

40 000 000 $ 0 $ 10 000 000 $ 0 $

2. YEARLY EXPENSES (-)

3 000 000 $ 5 000 000 $ 7 000 000 $ 9 000 000 $

3. RETURN OF INVESTMENT (-)

/ 20 000 000 $ 20 000 000 $ 4 000 000 $ of interest rate (10%)

4. INCOME (+) 33 850 000 $ 33 850 000 $ 33 850 000 $ 33 850 000 $

∑ -9 150 000 $ 8 850 000 $ - 3 150 000 $ 20 850 000 $

17 400 000 $

AFTER WE HAVE PREVIOUSLY GATHERED

DATA WELL PRESENTED AND ORGANISED, WE CAN

SURELY SAY A BIG

YESTO THIS INVESTMENT

PROJECT.

BUT DON’T FORGET, THIS IS A CASE OF A PERFECT

MARKET ;)

PLANNING STATISTICAL DATA

MARKET ANALYSIS

(MARKETING)

DECISION MAKING

INVESTMENT PROJECT

– YES or NO?

IN CONCLUSIONMATHEMATICS AND ECONOMICS ARE

EVERYWHERE AROUND US. WHEN WE ARE WALKING THROUGH A SHOPPING MALL, WE

DON’T REALISE IT, BUT IT IS A WHOLE MECHANISM WHERE WE END UP BUYING GOODS AND

SOMEONE ELSE SELLS THEM.

THEY ARE IMPORTANT IN OUR LIVES!

THANK YOU FOR YOUR ATTENTION!