If we consider economic variables as a continuous function of time, then we will encounter with relations which we have to use differential equations to solve them. If we consider the collection of relations of economic variables that are matched in accordance with the conditions, this collection of relations is called an economic model. models are two types, fixed models and variable models, and fixed models are related to equilibrium. In these models, the variables are independent of time, and when it comes to equilibrium, it does not change anymore, for example, if (p) is supposed the price of a commodity that the function of (p) is the amount of demand (d) and supply (s) in a fixed period, thenwe have that: The above links are a fixed system of economic model.If the price of many goods is focused, this price is constantly in changing. Sometimes it can be considered a continuous function of time, and the balance of demand and supply is also a continuous function of time, in this case, moreover the demand is a function of its price, it is the function of price changes as well, because if the price is predicted to be added or reduced in the future, it will be effective in terms of supply and demand; therefore, the demand and supply equation is as follow: The above is a fixed model. The purpose of this study is to study the importance of the differential equation and its use in economics.As the result of this article I found that the relationship of differential equations with economics has been mostly closed and expanded, and solution of many issues in economics depends on formation and solving of differential equations.
first order linear equation,fixed models, variable models, and market balance
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