What Are Some Applications Of Differential Equations In Economics? In economics they are used to model for instance, economic growth, gross domestic product, consumption, income and investment whereas in finance stochastic differential equations are indispensable in modeling asset price dynamics and option pricing. What is difference equation and its use in economics? A difference equation
What Is The Application Of Differential Equation In Engineering? In general, modeling of the variation of a physical quantity, such as temperature, pressure, displacement, velocity, stress, strain, current, voltage, or concentration of a pollutant, with the change of time or location, or both would result in differential equations. What are the applications of difference equations?
What Is The Difference Between Differential Equation And Difference Equation? The main difference between them, as others have pointed out, is that difference equations take discrete steps of finite size, whereas differential equations are about continuous flows, where the individual steps are so small that they cannot be distinguished, because the differentials are so small