Understanding Functions: The Language of

Mathematics and Economics

Introduction

In mathematics, the concept of a function lies at the heart of almost every major idea —
from simple algebra to advanced economics, physics, computer science, and data analysis.
A function is essentially a rule that assigns every input exactly one output. While this sounds
simple, the implications and applications of functions are profound. Whether modeling how
prices affect demand in economics, predicting profits based on production, or understanding
natural relationships like speed and time, functions allow us to express complex
relationships with clarity and precision. This essay introduces the concept of functions,
explores their types and properties, and illustrates their importance across disciplines —
especially in economics.

What is a Function?

A function is a relation between a set of inputs and a set of possible outputs such that each
input is related to exactly one output. This rule of uniqueness is what distinguishes a function
from a general relation.

Formally, a function f from a set A to a set B is written as:

f:A→Bf: A \rightarrow Bf:A→B

Here, A is called the domain of the function (the set of all possible inputs), and B is the
codomain (the set in which outputs lie). For every element x in A, there exists exactly one
element f(x) in B.

For example, consider:

f(x)=2x+3f(x) = 2x + 3f(x)=2x+3

This rule tells us that for any input x, we multiply it by 2 and add 3. If we input 1, we get 5; if
we input 0, we get 3, and so on.

Why Functions Matter

Functions allow us to model relationships. In economics, functions represent how one

variable affects another:

●​ Demand as a function of price: D(p)=100−2pD(p) = 100 - 2pD(p)=100−2p​

 ●​ Profit as a function of quantity: π(q)=R(q)−C(q)\pi(q) = R(q) - C(q)π(q)=R(q)−C(q)​

●​ Cost as a function of output: C(x)=50+10xC(x) = 50 + 10xC(x)=50+10x​

Without functions, it would be difficult to mathematically represent these cause-effect

relationships. By using functions, we can analyze, predict, and optimize systems.

Representing Functions

Functions can be represented in several ways:

1.​ Algebraically (as equations):​

Example: f(x)=x2−3x+2f(x) = x^2 - 3x + 2f(x)=x2−3x+2​

2.​ Graphically (on the Cartesian plane):​

Each point (x,f(x))(x, f(x))(x,f(x)) shows how input maps to output.​

3.​ Numerically (as tables):​

x f(x)

1 5

2 7

3 9

4.​ ​

5.​ Verbally (as descriptions):​

Example: “The function triples any input and adds 1.”​

Domain and Range

●​ Domain: The set of all valid input values (x-values).​

●​ Range: The set of all possible output values (f(x)-values).​

For instance, in the function:

f(x)=1xf(x) = \frac{1}{x}f(x)=x1​
The domain excludes x=0x = 0x=0, because division by zero is undefined.

In economics, the domain might be restricted to positive numbers (e.g., you can’t have
negative production or negative people).

Types of Functions

Functions come in different types based on their algebraic form and behavior:

1. Linear Functions

Form: f(x)=ax+bf(x) = ax + bf(x)=ax+b​

Graph: A straight line​
Used to model constant rate relationships.

2. Quadratic Functions

Form: f(x)=ax2+bx+cf(x) = ax^2 + bx + cf(x)=ax2+bx+c​

Graph: A parabola​
Used in modeling cost, revenue, or utility with diminishing or increasing returns.

3. Polynomial Functions

Form: f(x)=anxn+an−1xn−1+⋯+a0f(x) = a_nx^n + a_{n-1}x^{n-1} + \dots +

a_0f(x)=an​xn+an−1​xn−1+⋯+a0​​
Includes linear, quadratic, cubic, etc.

4. Rational Functions

Form: f(x)=P(x)Q(x)f(x) = \frac{P(x)}{Q(x)}f(x)=Q(x)P(x)​​

Where P and Q are polynomials. Used in supply-demand, tax formulas, etc.

5. Exponential Functions

Form: f(x)=axf(x) = a^xf(x)=ax​

Models population growth, compound interest, inflation.

6. Logarithmic Functions

Inverse of exponential functions:​

f(x)=log⁡axf(x) = \log_a xf(x)=loga​x​
Used in utility functions, elasticity, and information theory.

One-to-One and Onto Functions

 ●​ One-to-one (Injective): Different inputs give different outputs.​
Useful when each economic variable has a unique counterpart.​

●​ Onto (Surjective): Every element in the codomain is mapped by at least one input.​

●​ Bijective: Both one-to-one and onto — allows for perfect reversibility (important in
inverse functions).​

Operations on Functions

Functions can be combined using:

●​ Addition: (f+g)(x)=f(x)+g(x)(f+g)(x) = f(x) + g(x)(f+g)(x)=f(x)+g(x)​

●​ Multiplication: (f⋅g)(x)=f(x)⋅g(x)(f \cdot g)(x) = f(x) \cdot g(x)(f⋅g)(x)=f(x)⋅g(x)​

●​ Composition: (f∘g)(x)=f(g(x))(f \circ g)(x) = f(g(x))(f∘g)(x)=f(g(x))​

For example, in economics:

●​ Let cost = C(q), and tax = T(q), then total cost = C(q) + T(q)​

Piecewise and Step Functions

These functions define different rules for different intervals. For example:

f(x)={10xif x≤10015xif x>100f(x) = \begin{cases} 10x & \text{if } x \leq 100 \\ 15x & \text{if } x
> 100 \end{cases}f(x)={10x15x​if x≤100if x>100​

This models real-world cases like bulk discounts or tax brackets.

Inverse Functions

If f(x)f(x)f(x) maps x to y, the inverse function f−1(x)f^{-1}(x)f−1(x) maps y back to x.​

This is vital in solving for unknowns:

●​ If y=2x+3y = 2x + 3y=2x+3, then x=y−32x = \frac{y - 3}{2}x=2y−3​​

In economics, inverse demand functions (price as a function of quantity) are often used.
Functions in Economics

Demand and Supply Functions

●​ D(p)=100−2pD(p) = 100 - 2pD(p)=100−2p: As price increases, demand falls.​

●​ S(p)=10+3pS(p) = 10 + 3pS(p)=10+3p: As price increases, suppliers supply more.​

Cost, Revenue, and Profit Functions

●​ Total Cost: C(q)=Fixed+Variable=50+10qC(q) = Fixed + Variable = 50 +

10qC(q)=Fixed+Variable=50+10q​

●​ Revenue: R(q)=p⋅q=(20−q)⋅qR(q) = p \cdot q = (20 - q) \cdot qR(q)=p⋅q=(20−q)⋅q​

●​ Profit: π(q)=R(q)−C(q)\pi(q) = R(q) - C(q)π(q)=R(q)−C(q)​

Utility Functions

●​ U(x,y)=xa⋅ybU(x, y) = x^a \cdot y^bU(x,y)=xa⋅yb: Represents preferences over two

goods.​

Production Functions

●​ Cobb-Douglas: Q=A⋅Lα⋅KβQ = A \cdot L^\alpha \cdot K^\betaQ=A⋅Lα⋅Kβ​

Where output depends on labor (L) and capital (K).​

Real-Life Examples

1.​ Bank Interest:​

Compound interest: A(t)=P(1+r)tA(t) = P(1 + r)^tA(t)=P(1+r)t​

2.​ Population Growth:​

P(t)=P0ertP(t) = P_0e^{rt}P(t)=P0​ert​

3.​ Taxation:​
Stepwise tax functions are modeled using piecewise-defined functions.​
Conclusion

Functions are not merely mathematical tools — they are the language of logic, science, and
rational inquiry. In economics, they help us translate verbal relationships into equations we
can analyze, manipulate, and interpret. A solid grasp of functions enables students to
understand marginal analysis, optimization, elasticity, and growth — all pillars of economic
reasoning. For non-maths background students, learning functions step-by-step, visualizing
graphs, and applying them to real-world situations is the best path to confidence and
mastery. As you continue your journey through mathematical methods for economics, keep
this truth in mind: functions are your bridge between numbers and meaning.