Its criminal that universities cannot explain concepts as well as what you can find on the internet, FOR FREE. I salute you sir, doing gods work

@alexmaranga2180

Жыл бұрын

Yet they ask that question

@user-mb7ov8bs8f

4 ай бұрын

My Uni dosen't even have the lectures for eco. They just gave us a book... Oh no... They told us what book to Buy.

I understand income and substitution effects much better after watching your video. Its more informative and easy to follow than either my professor or my textbook. Thank you!

@economicsfun

8 жыл бұрын

+Will Thieme You are very welcome. Hopefully you will get a chance to share and like the videos. This will help others find them.

@weaselychicken

8 жыл бұрын

+Babar Ahmad Khan Wtf are you on about mate

@91099Babar

8 жыл бұрын

gooby goobton something We shall reveal everything of how your teaching staff pick on Asians for harassment and blackmailing purposes and failed them by design if he denies to pay you money for your vacations ?

@arzunurpolat

8 ай бұрын

The good is a inferior good. What happens if the price of substitute goods increases? How do the demand shifts change? Can u please answer my question?

This 13 minutes is much better than my 2 hours Purdue Econ class. Thank you lol.

@billwalton1091

4 жыл бұрын

Shout out Econ 251

SOMEBODY GIVE THIS MAN A MEDAL!!!!!!!

@olivesolive1585

4 жыл бұрын

🎖

@sivarajlingam1448

3 жыл бұрын

🥇

@abhilashadas115

Жыл бұрын

🏅

@Tumelo_M398

Жыл бұрын

​@@abhilashadas115hey

This is the best explanation I have ever seen. Even my prof couldn't explain it this well

It's better than sitting in class for 1 hour learning about this! I choose this all day everyday

There is a massive difference between how you explain stuff vs how other youtubers do. You are a life saver!!!!

Wow, your simple graphic of sliding the new budget line to be parallel to old indifference curve made way more sense to me than my professor drawing everything out on paper. Thanks for this awesome video!

I just wanna appreciate how organized and clear and neat this explanation is. This is so good. So good. So amazing. So nice. So clear. So nice.

this is more helpful than my lecturer

@mmmnnn302

6 жыл бұрын

Mike black really

Thank you so much this was so simple. After a week of classes, and several failed attempts at self learning, I finally understood. I actually want to cry, thank you so much

Great video. For those that wish to go into some details: The intermediate baskets of goods in the video were all constructed with the Hicks method for finding "income-neutral" baskets. There is another method, the Slutsky method, were the intermediate basket of goods is built with a parallel line to the new budget line that we find (and here's the difference between the 2 methods) by stopping once the parallel line touches the original basket of goods. Our Slutsky budget line will be tangent to a new indifference curve at a point; this point is the Slutsky intermediate basket to be used for the Slutsky decomposition.

Your video animation as well as explanation is world class! As a visual learner it really helped me a lot! Thank you for your effort in creating such in-depth tutorials! Cheers Subbed!

OMG this is by far the most simplist and logical way to explain the income and substitution effects! I been trying to understand how to do it with many videos and they could not explain it! I love this video!! Thank you sooooo much!!

Wow! You should be doing this full time! The video was superb, and the animations were spectacular- very lucid and self-explanatory. Kudos, and much thanks!

You are going to be the reason why I do well on my midterm. Thank you and keep the videos coming.

@economicsfun

8 жыл бұрын

+ahccah Thanks, but you deserve all the credit. Good luck in your studies. Hopefully you can like and share the videos so other students can find them.

Very helpful. I appreciated the detail, graphics and the explanation as a whole. Thanks!

how do you draw the parallel line, that is tangent to the 1st indifference curve? How do you find the points at which they are tangent? How do you find point C?

Slow, but so effective, perfect pace. Thank you very much, it wasn't that clear when I read my book but it is now clear

Brianna, thanks for that. It is good to know that you think my videos are the best vides ever. If you have not already done so, Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.

Explained in an excellent way with correct use of graphics. Haven't seen such a neat explanation before. Thanks a ton! :) Keep making such videos ❤️

eXCELLENT animations and tutorial, you deserve way more views

@economicsfun

8 жыл бұрын

+MegaNerevar Thanks! I am working my way up the view latter. Like and Share, it helps get the word out.

I understand this way better now. Thank you! I wish my professors were this thorough

A very simple and easy to understand video, I know well about income&substitution effect after watching this. Thanks a lot!

you are the best one who can explain without any confusing students

You are very welcome! Make sure you like MyBookSucks on Facebook too (see link in video description). This will help others find the educational videos. Good luck in your classes to.

Could you explain the theory of what happens when the price of good x goes up?

Really nice lecture for anyone to understand. Thanks a lot for posting such a nice video with clear explanation.

Excellent video. I read the chapter from Micro Textbook and your video clarified things for me.

This is amazing - so neat and easy to understand. Videos like these are perfect for visual learners, thank you!

@raziqsadaqa9838

3 жыл бұрын

Yeah . 😍

With my textbook I use to sleep in these type of topics.....but here it is made so easy to grasp..... Thanks a lot...♥️from India

so flipping helpful. Got my first assignment on this and you've made it so much clearer!

Really good explanation, thank you :) Also - you might consider being a therapist in your free time, your voice is so soothing lol xD

Best and only video which thought me everything about Substitution and income effect that I clearly understand. Thanks

Hi, guys! Thanks for the video, it's very helpful. But please help me to understand something here: why is the second indifference curve, for an inferior good, drawn upper in the budget line then it is in a normal good? Is it a pattern we have to follow? Is there any reason for that? Because in case of giffen goods (not shown in this video), for instance, I've noticed that this same second indifference curve is drawn even upper in the budget line, it almost touches the Y axis. PLEASE HELP! I really want to understand this. Kind regards, FP

how do you know where to draw the new indifference curve on new budget line? If you draw it wrongly the whole graph is wrong. Can someone explain to me or show me a website?

Thank you so much! I have one question though. When finding the substitution- and income effects for the inferior good. Am I right to understand that good Y is the inferior good and good X is a normal good? - Philip

May I ask, how to justify the x and y intercepts of the budget line which tangent at point C?

thank you soo much .. you made my day so easy ... what i was able to understand in one full day .. you did it in 13 min

Great vid. Could you explain how, for the increase in income on the inferior good, the quantity of X goes up? specifically, what is good X and what is good Y?

Can you tell whether income effect reinforces substitution effect in case of inferior goods?

where do you get your numbers? are we given those? how do you know point c is 10

Yes I will. I am also adding more content. I have channels on Statistics too. Make sure you like MyBookSucks on Facebook (see link in video description). I post new material there as well and you can find links to all my channels.

Hey! Sorry if this a stupid question but why did you change the position of the tangencies? Was it just random or is there a reason? Like thr tangency of the IC of the normal good was higher but for the inferior good the new IC was lower?

How can we calculate income and substitution effect numerically? like, in this video we just move the budget line and say the new bundle is at a certain point because it touches the indifference curve, but how can we know?

i have a question in drawing graph for normal good we took the point b far from A while in graph of inferior good we took b very close to A.why is that?/

What is the concept of parallel line ? not able to understand it .. what is the significance of this .

u have no idea how much this helped

very clear illustration, thank you for your work! You saved me

why is the slope of the indifference curve changing and how do i know how the slope of it will be affected by the income effect ?

In these examples, when u do say the example of inferior goods, are both goods inferior? or just the one you are changing (good x)?

Hello this video has really helped but I just need a little explaination at 2.14 of the video, which is that the new budget is brought tangent to the older I.C. Why did this happen? I know it's for Substitution Effect but I still dont get it. Hoping for a reply. Thanks.

Thanks a lot, explained in a very clear way

the pace and explanations are amazing. nice :)

How do you know the slope of the curve in general? Sometimes they are more bent and sometimes not.

i was stuck for quite some time but you made it clear. Thank you

Is the substitution effect always "positive " for a normal good, regardless of whether the normal good's price increases or decreases?

this video really helped me A LOT. thank you so much!

What if the Y price decrease or increase. Is it has the same effect as the X variabel?

How do you draw a graph with an income raise and then show the sub and income effect for a normal good

You are better than my professor.

Perfect video, fully understood the material. Just one question, do you have a video for when Price of Y increase/decrease?

what is the function of substitution effect? what can we know from understanding that?

Why do u shift the budget line parellel? How does that indicate same purchasing power? Thanks! Good video!

so which even is the inferior good? ( X right?)

Will you be doing more vids

But why do we need to create a new line. I don´t understand why we should draw that line, what does it represent?

12:08 how do we know whether to do 8-7 or7-8?

Best explanation so far

How did u get 4 and 17?

I have a real question, for inferior good why is the IC2(indifference curve2) placed differently tangent to the Budget Line 2 compared to the normal good? It's somehow placed too much up along the budget line whereas for normal good it's placed on the middle

I'm from Kenya ...and your videos are very helpful ...❤

Brilliant lecture by all standards.

Indeed thats a best explanation i have ever witnessed

Thank you very much for this video. The explanation was crystal clear.

This video made it easier for me to understand. Thanks!

So how does slope slutsky compensated demand equals slope of hicksian demand function dx(p,w)/dp2 = dh(p,u)/dp2 works? Is income effect =0?

i dont get it. if it normal good, woudnt the income will go up?

this 13 minutes video made me more understand than my 2 hours boring class thanks, this video is very helpful

That is great to hear and good luck in your class too.

@alinafotova6364

3 жыл бұрын

*Only 18* 👇👇👇 734867.loveisreal.ru

this is the best video on this topic!

thanks a lot and could you teach the changes on y quantity if price goes up or down?

Really helped me in Khanna's Intermediate Micro class at Colgate. Thanks.

best explanation so far

best lecturer ever!

What if price of Y change and Y becomes inferior good? Please help.

How do you determine whether it's a normal or inferior good if the question didn't give you points A and B coordinates. How do you go about knowing which food is which?

@ILURBSUSHI

7 жыл бұрын

Good*

Thank you so much...you are a life saver.

How do u know where to place the indifference curve II on the new budget line?

@deepakthapa9528

10 жыл бұрын

even i have same problem. Confused where to put ic curve :(

@RangeAhmed

10 жыл бұрын

i think the way you have to look at it is you're answering a question. If the good is a normal good, then the income effect is positive and therefore the new indifference curve will have a to reflect the new (higher) quantity of the good that will be purchased. The same goes for decreases in price. For inferior goods, the income effect is negative and therefore the new indifference curve you draw must reflect the respective outcomes that occur when price rises/falls for an inferior good. So just look at what the question wants and from there draw your graphs! I hope this helped!

@Naeemkhan-rv4kf

6 жыл бұрын

for that u hv to read indifference curve properties, that it always convex to the origin

@MathsHistoryHelp

6 жыл бұрын

I believe as long as you are within the boundaries of the original curve, which itself a subjective point. The curves can be drawn in different places, as long as they are tangent to the budget constraint line

5 жыл бұрын

As far as I know, you always place it at the max satisfactory bundle/point which is where the slopes of both the budget line and the indifference curves are equal.

Totally the best way to teach this tutorial!

Thank you very much. This was very helpful for my exams.

Very good questions. The concept of the parallel line is to "simulate" a shift in income. If income changed how would the consumer change consumption. Make sense?

May I know for the fourth scenario, why the income effect of X is positive when price of X increases? Thank you

thanks for the video, very clear and understandable.

Can You describe me why those lines are parallel?

What about the total-/substitution-/income effect for good Y in these examples?

beyond brilliant video! :-) shared this with all of my friends.. I have one question; if i dont know the original situation (the consumers utility function and the budget line), and I am supposed to discuss what happens when the good x1 has a price decrease, and the good x2 has a price increase.. How is that possible without knowing the utility function? (The task says that I have to discuss whether the consumer will prefer the new situation or not).. I know nothing about how much the price or anything else is.. PLEASE PLEASE PLEASE help me understand this task.. :(

How would I know the exact quantity of good consumed do to the change in price? do understand that is the point at tangency based on the new slope with a lower price, but how do we know the exact number, 10... need an answer, finals are soon!

Can somebody explain me why the net total effect of decreasing price of X in case of inferior goods become +ve? As we all know if the price of a product decreases people's real income increases and this made demand for inferior goods decrease. But here it is increasing in net qd.

What is the slope of inferior goods? Negative or constant?