Mathematical Economics

Mathematical economics uses mathematical tools to describe and analyze how economies work. Instead of relying on words or graphs, it uses equations and logical reasoning to express economic ideas clearly and precisely. This field is mostly theoretical and helps build the models that other fields, like econometrics or policy analysis, use later with data.

An example is using math to prove that supply and demand in a market will reach a balance under certain conditions. Game theory, which studies strategic decisions (like in auctions or negotiations), is also part of mathematical economics.