From the course: Economic Tips for Everyone

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

The only calculus concept you ever need

The only calculus concept you ever need

From the course: Economic Tips for Everyone

Start my 1-month free trial

The only calculus concept you ever need

“

- To be an economist, you have to be very good at calculus, but in business, there's only one calculus concept you need to be familiar with, and that's the second derivative of a market when the price is rising. I know it sounds like a complicated topic, but bear with me. In business and economics, a derivative is a way of describing the direction a financial market or business indicator is trending. There's a first derivative, which shows if a price is going up or down. So if the price of an ounce of gold is $1,000, and it rises the $2,000, the first derivative is positive because the price is going up. But the second derivative is how fast it's going in that direction. For example, if gold prices rose from $1,000 to $2,000 last year, it was up 100%. But let's say this year, the price is up only from $2,000 to $2,040. That means this year's price is still up. So the first derivative is positive, but the pace…

Contents