This document discusses the relationship between mathematics and economics. It provides an overview of key economic concepts like microeconomics, macroeconomics, demand, supply, and market equilibrium. It also presents an investment analysis for opening a shopping mall in Koprivnica, Croatia. The analysis includes market research on existing stores, projected expenses and revenues over 4 years, and a calculation showing the project would earn a profit and is therefore a viable investment. In conclusion, the document emphasizes that mathematics and economics are all around us in everyday activities like shopping and are important concepts to understand.

1. MATHEMATICS AND ECONOMY
Made by: Lana Deverić; Koprivnica, Croatia
Mentor: Mara Grašić

2. ECONOMICS
WHAT?
HOW?
FOR
WHO?
MICROECONOMICS
MACROECONOMICS
consumer analysis
based on consumer
preferences
COMPANY
INPUTS
GOODS
PEOPLE
competition
between
companies or
sellers
population

3. money
now
production
pay
before
exchange
of goods
MEAN OF EXCHANGE PAYMENT:

4. 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 · YConsumer 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

5. DEMAND
• CONSUMER
• NEEDS AND
PREFERENCES
CONSUMER
NEEDS AND
PREFERENCES
UTILITY FUNCTION
SUBSTITUTION EFFECT
INCOME EFFECT
INDIVIDUAL
DEMAND

6. 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:

7. 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:

8. 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

9. P
Q0
equlibrium
AGREGATE
DEMAND
AGREGATE
SUPPLY
E

10. 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: 20
Shoe shops: 5
Drug stores: 5
Grocery stores: 10
SUM OF ALL SHOP TYPES IN
KOPRIVNICA
Clothes shops: 24
Shoe shops: 8
Drug stores: 8
Grocery stores: 12
HOW MANY SHOPS DO I
PLAN TO OPEN INSIDE MY
MALL?
Clothes shops: 4
Shoe shops: 3
Drug 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
YES
TO 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?

11. IN CONCLUSION
MATHEMATICS 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!

12. THANK YOU FOR YOUR
ATTENTION! 