How to Calculate Marginal Utility and Marginal Rate of Substitution (MRS) Using Calculus

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  • Опубліковано 22 лис 2024

КОМЕНТАРІ • 138

  • @katrinaaliviza457
    @katrinaaliviza457 4 роки тому +2

    I cant believe im watching this 9 years later. I'm enjoying your teaching.thank you

  • @JenileGonzales
    @JenileGonzales 12 років тому +9

    Thank you so much for these videos ! I spent days trying to understand this topic and you taught it in a few minutes. i even told my lecturer about your videos and advised that everyone should check you out !

  • @gloriasheen6336
    @gloriasheen6336 8 років тому +62

    did i just hear "mental masturbation"
    LMAOOOO

    • @mannasirak5823
      @mannasirak5823 5 років тому +1

      I'm deaaaadddd @economicsfun liking this

  • @jpabs10
    @jpabs10 11 років тому +96

    Did he say mental masturbation at the end? I'm so confused...

  • @murfalious
    @murfalious 6 років тому +5

    Thank you for making this very clear!
    It was the bit at the end that was puzzling me.
    Thanks again!

  • @davidplayswow
    @davidplayswow 8 років тому +81

    thanks i mental came

  • @shoeb178
    @shoeb178 12 років тому

    all I can say your amazing, And I got a 2.1 last year just by watching your video and barely looked at my silly lecture notes! Thank a lot.

  • @OliverEngele
    @OliverEngele 9 років тому +9

    You're the real mvp.... thank you for this

  • @antonette7771
    @antonette7771 12 років тому

    thanks for the video i have been lost in my intermediate micro class for weeks... you just cleared everything up in ten minutes wow you should come lecture at my university !!

  • @leucbinh7397
    @leucbinh7397 4 роки тому +2

    Terrific job! You made things so much easier to visualize

  • @goldiexxz3066
    @goldiexxz3066 11 років тому +2

    Great video! it was really helpful to me! thanks so much. I was sitting in class today and I did not understand what my prof was talking about.. all those indifference curves and MRS calculation. you are a life saver ! :) thanks!

  • @LaCeiba1924
    @LaCeiba1924 12 років тому +1

    As an engineering student, I hate hate hate my intro to macro/micro economics textbook! The author is so scared to use math that he gives longwinded, roundabout explanations about everything, when he could just show some basic calculus. It'd be a heck of a lot more interesting too! :( Thank you for these vids. :D

  • @LesslieRojas-p6w
    @LesslieRojas-p6w Рік тому

    Hey thank you so much for this video!! It literally saved my bacon for this semester in public finance!

  • @plumstreetmusic
    @plumstreetmusic 13 років тому

    I've added this and some others of yours to my urbanecondetroit channel as a refresher for my students.

  • @TVYGANTAS
    @TVYGANTAS 11 років тому +31

    sorry but can not find the numerical example to help please let me know where I can find it. Thank you in advance

  • @HuongTran-jg7tw
    @HuongTran-jg7tw 3 роки тому +3

    Wait, why is MRS = dy/dx at the beginning, then MRS= -dy/dx at the end? why are they not consistent? isn't MRS the slope of the indifference curve (always negative), then at the end, if MRS = -dy/dx, it always receives positive values? So which one is that, positive or negative?

  • @economicsfun
    @economicsfun  12 років тому +1

    Good question. dx and dy is notation. It reads as "I took the partial derivative of U(x,y) with respect to good x (or dx). So the dx tells you I am taking the derivate with respect to x.
    The function is U(x,y) and I probably should a video with an equation.

  • @economicsfun
    @economicsfun  11 років тому

    You are very welcome MrCheese! Good luck in your studies as well.

  • @pesomebeta109
    @pesomebeta109 10 років тому +3

    Thank you so much. I wish you keep your motivation and bring a lot of good teaching to life.

  • @alam_tapia
    @alam_tapia 3 роки тому

    You are so good at teaching! Thanks!

  • @KhalilHomaam
    @KhalilHomaam 10 років тому +1

    Wow ! You are the best instructor here on UA-cam ! every one else sucks ... ;)

  • @becksblack1474
    @becksblack1474 3 роки тому +7

    I know someone's already asked a similar question but at 7:21 when you're deriving the utility with respect to x, where does the 2nd 'dx' come from? (the part where it says (dU/dx)dx)
    In your reply you said that the extra dx shows that you're taking the partial derivative of U with respect to x, but isn't that already shown by the the dx that's in the denominator of dU/dx? In other words, if dU/dx is read as 'the derivative of U with respect to x', why would you then need the 2nd dx to show that you're taking the derivative with respect to x? Just confused as when doing calculus we've only ever put dx like that when we're doing integrals
    Hope my question makes sense + thanks for the video, it's really useful - this is only part I don't really get

  • @StampedeAfrica
    @StampedeAfrica 3 роки тому

    Thanks a lot for explaining in simple words.

  • @AsgharKhan-fd1ul
    @AsgharKhan-fd1ul 12 років тому

    Great JOb. i wish teachers also taught this way in class.

  • @shoumickhan3461
    @shoumickhan3461 7 років тому +1

    Economicsfun you rock! Seriously very helpful, and I know others think so too

  • @saldanagaona
    @saldanagaona 2 роки тому

    Cool video. Very helpful. It’d be more helpful for some of us to have actual values in these examples. For me I have to see an actual problem worked out. You did good until you got to the end of the video in the last 3 minutes.

  • @economicsfun
    @economicsfun  13 років тому

    @plumstreetmusic thanks. I take it you are teaching an advanced course in economics.

    • @jespernavne4393
      @jespernavne4393 5 років тому

      Nice video, thank you.
      Which tool are you using for these videos? Its looks quite awesome how you can pull the numbers around on the screen.

  • @Maskincawiye
    @Maskincawiye 7 років тому

    The best teacher ever, why can't all other moron teachers explain things like this, I'm indebted to your forever sir.

  • @christianvonstorch2945
    @christianvonstorch2945 7 років тому +1

    i was promised a numerical example!!!
    great video by the way, thank you

  • @lolaritter7518
    @lolaritter7518 3 роки тому

    Thank you so much, this was very helpful

  • @aniyahunter9474
    @aniyahunter9474 3 роки тому

    Thank you so much... you have really helped me

  • @economicsfun
    @economicsfun  12 років тому

    Great to hear the videos are helping you out. I noticed you are in Jamaica and I have never been there. Maybe I could have an impromptu economics lecture on the beach :)

  • @silviacamacho8373
    @silviacamacho8373 5 років тому +1

    I didn't see that coming, great videooo!

  • @economicsfun
    @economicsfun  12 років тому

    Thank you for your comment, much appreciated.

  • @kowax007
    @kowax007 12 років тому

    Great explanation of the content. What is the actual function for U? e.g. U=Sqrt(x*y) something along those lines?

  • @sheraqamohammadi9522
    @sheraqamohammadi9522 3 місяці тому

    What app do you use for teaching? like moving the characters.

  • @kiranpaitkiranpait8320
    @kiranpaitkiranpait8320 6 років тому

    Thanks you sir for your explanation is so goods

  • @greensignal5721
    @greensignal5721 5 років тому

    Wow!!
    Outstanding 🍁💜💐

  • @katiaantonova6949
    @katiaantonova6949 5 років тому

    This is awesome. Thank you so much

  • @xunit94
    @xunit94 10 років тому

    Hello sir! Thank you for your video, i hope you will be able to answer this question since its an old video :/ its a simple and stupid question but when do i calculate MRS using the first method and when do i do it using calculus? Thank you!

  • @ayushtanguria3189
    @ayushtanguria3189 4 роки тому

    an individual's marginal utility for commodities are given by the following relation MUx= 40-5x and MUx= 20-3y. what is his marginal rate of substiturion in th3 consumption at the consumption basket X= 3, Y=5? if Px= $5 and Py= $1. Does the basket represent consumption equilibrium? Please solve this sir.

  • @shahzadawan7091
    @shahzadawan7091 11 років тому

    Great work.I really appreciat

  • @barrybrolsma
    @barrybrolsma 9 років тому

    THANK YOU ! You are a great person ..............

  • @ryan2009cov
    @ryan2009cov 4 роки тому

    Did that numerical example ever end up being made? Kind of hard to process all of this using just algebra.

  • @kindalindaable
    @kindalindaable 9 років тому +4

    I love youuuuu, and all of your amazingly helpful videos!

    • @economicsfun
      @economicsfun  9 років тому +5

      +kindalindaable Ahh! aren't you sweet. I love you too and thanks for your kind words.

    • @barrybrolsma
      @barrybrolsma 9 років тому +1

      +Economicsfun THANK YOUUUUUU

  • @pomipol4
    @pomipol4 8 років тому +4

    At 2:40 to know the MRS he calculate delta y and delta x, but why did he do (60-40) / (20-30) ? In France, to calculate the "change in" we do Final value - Start value, so (40-60) / (30-20), why did he do the inverse?

    • @ShigureHisame
      @ShigureHisame 7 років тому

      kadir mutlu Maybe they calculate it the other way around? you get the same results so I don't think it matters :)

    • @Maskincawiye
      @Maskincawiye 7 років тому

      me too I wondering the same thing, I learned it this way, final value - initial = the change of either X or Y, doing this respectly .

    • @dantruon25
      @dantruon25 6 років тому

      Because he is going from point A to point B. At point A the value is 60 for Y and 20 for X. He wants to visualize the movement from the graph. If he did it your way with the graph, it would not make sense.

  • @MyMpc1
    @MyMpc1 9 років тому

    Hi thanks for this useful video..I just have one question. If utility doesn't change along an indifference curve, towards the end of the video, isn't the ratio of the marginal utilities always -1, as the marginal utilities added together equals 0, one value must be the negative of the other (a+b=0, therefore a/b=-1).

  • @plumstreetmusic
    @plumstreetmusic 13 років тому

    Nicely done. Tasteful animation. How you thought about extending the analysis to include a price increase for x and then derive a demand curve for x?

  • @tarekdarouiche2203
    @tarekdarouiche2203 11 років тому

    I'm sorry I looked through the videos in this playlist and still cannot find the one with the numerical example. Do you remember the video title?

  • @Hana-uv7ku
    @Hana-uv7ku Рік тому

    Thanks bro😊

  • @wangguan1548
    @wangguan1548 Рік тому

    Thanks so much!

  • @dudley0007
    @dudley0007 4 роки тому

    Can there be a situation where the Utility Curve is not constant? Will the equations be the same?

  • @MINN1EME
    @MINN1EME 9 років тому +1

    Thank you so much for your video! It's really helpful and easy to understand. :))

    • @economicsfun
      @economicsfun  9 років тому +2

      Great to hear and thank you for your feedback. It is much appreciated.

  • @teljnyazhka
    @teljnyazhka 11 років тому

    sorry, where is the channel economicsfun, and also what links were you referring to in this video? I can't find any other link apart from mybooksuck, and whenever I visit this website there is nothing at all...

  • @economicsfun
    @economicsfun  12 років тому

    Wow thank you so much. Great the videos are helping you in your classes too. Make sure you like MyBookSucks on FaceBook (see link in the video description). You will help me get the word out.

  • @adrianpolydorou
    @adrianpolydorou 6 років тому +1

    Hello , Why is Delta x of a and b 20 - 30 and not 30 -20 ? Regards

  • @GBCR
    @GBCR 5 років тому

    I don't get how we use MUx/MUy when we don't know MU (besides that they're variables)....???

  • @ibrohimhujamov9926
    @ibrohimhujamov9926 4 роки тому

    Thank you😊😉

  • @berryonah
    @berryonah 3 роки тому

    thank u for this !!

  • @monjur-105-c5
    @monjur-105-c5 4 роки тому

    Please,,, may i know,, which types software uses,to creat such as video....like economical graph, and write, like this video.....
    ..
    Pls know me

  • @plumstreetmusic
    @plumstreetmusic 13 років тому

    @economicsfun Thanks. You are doing a great job. I will look through your collection a make suggestions.

  • @domogami
    @domogami 7 років тому

    Did you do all of this in PowerPoint? If not what did you use to get these beautiful animations?

    • @economicsfun
      @economicsfun  7 років тому

      I use a variety of different tools not powerpoint. I use Final Cut Studio to put the pieces together.

  • @itsBillCosbyTime
    @itsBillCosbyTime 10 років тому

    you are the man

  • @economicsfun
    @economicsfun  12 років тому +1

    Thanks again! I would encourage you to like MyBookSucks on Facebook (see the link in the description of the video). This will help other students find MyBookSucks and help ease their pain in economics.
    Again, thanks for the positive feedback you have given. It means a lot to me to hear from students.

  • @economicsfun
    @economicsfun  13 років тому

    @plumstreetmusic Wayne State is a great school. If you think of anything else your students need to review let me know I am always looking for ideas. I did enjoy your deriving demand from consumer budget video. And I did repost as a video response to my video (see below).

  • @comfortkabanshi5048
    @comfortkabanshi5048 Рік тому

    Perfect!

  • @ydyd166
    @ydyd166 Місяць тому

    7:15 the notation is wrong, no? Total differentiation should be normal d and not curly d.

  • @umrankoca3862
    @umrankoca3862 Рік тому +1

    did he just say what I think he said

  • @plumstreetmusic
    @plumstreetmusic 13 років тому

    @economicsfun Yep. The senior/masters level Urban Economics and Real Estate Markets course at Wayne State University in Detroit

  • @preethmarioperera4525
    @preethmarioperera4525 5 років тому

    Thank You!!!

  • @economicsfun
    @economicsfun  12 років тому

    You got that right! Make sure you like MyBookSucks on FaceBook (see link in video description). We post all sorts of college humor stuff.
    Good luck in your classes!

  • @economicsfun
    @economicsfun  12 років тому

    Thanks for your observation and I could not agree more. I believe that calculus is skipped because calculus is taught so poorly and the texts are equally bad (mybooksucks). I have experienced students do much better with the calculus explanation even if they have no prior math or calculus background.

  • @지아니98
    @지아니98 7 років тому

    Thank you so much! This helped a lot! :)

  • @economicsfun
    @economicsfun  12 років тому

    yes and may the force be with you :)

  • @economicsfun
    @economicsfun  12 років тому

    @blake81088 Thanks and that is great to hear. My ultimate goal is this very thing.

  • @priscillahernandez7608
    @priscillahernandez7608 9 років тому

    If MC is constant, What does AVC look Like on a graph?

  • @basports7474
    @basports7474 4 роки тому

    utility function u= 4q-q^2 how to solve this problem

  • @sushant_
    @sushant_ 6 років тому

    Thanks man

  • @emmanueljuma4278
    @emmanueljuma4278 2 роки тому

    Nice

  • @pedermh
    @pedermh 12 років тому

    Where do the dx and the dy after MUx and MUy come from? (7:20)

  • @djdanman7
    @djdanman7 9 років тому

    Where can I find said "numerical example"?

    • @economicsfun
      @economicsfun  9 років тому

      Daniel Grant Here is another video with some numbers ua-cam.com/video/INSKJS15cZk/v-deo.html. Good Luck.

  • @economicsfun
    @economicsfun  12 років тому

    The actual utility functions are hard to write in comments since I can use exponents. If you google Cobb-Dougla Utility Function, then you will see a typical utility function.

  • @basports7474
    @basports7474 4 роки тому

    Please draw graph of utility function u = 4q - q^2

  • @margravekevin7765
    @margravekevin7765 3 роки тому

    I hope both sides of your pillow stays constantly cool. I love you.

  • @economicsfun
    @economicsfun  11 років тому

    Sorry for the delayed response... This video is part of a playlist and if you go to the channel economicsfun you should see the playlist on Consumer Theory. See link in this videos description.

  • @ocsosweet
    @ocsosweet 10 років тому

    awesome

  • @anthonysp7223
    @anthonysp7223 7 років тому

    I need to be able to find MRS-xy . From a utility function

  • @economicsfun
    @economicsfun  11 років тому

    Since UA-cam limits the number of characters, that is really hard to read! You could go to MyBookSucks facebook page and send a message (with the formula in a word document). You can see the link in the video description.

  • @trishagoddard8854
    @trishagoddard8854 9 місяців тому

    Where's the numerical example

  • @vishmithalanka
    @vishmithalanka 3 роки тому

    how find MRS at a point?

  • @Someone-hv9zz
    @Someone-hv9zz 6 років тому +2

    DerivaTEEV

  • @economicsfun
    @economicsfun  12 років тому

    Thank you so much. It is always great to good feedback and recommendations. Good luck in your classes too and make sure you let me know if you have any special requests.
    Also... like MyBookSucks on Facebook (see the link in video description). I post new material there and also college humor.

  • @diflection1
    @diflection1 8 років тому

    why don't you teach how to get function.......................

  • @bmb328
    @bmb328 5 років тому +1

    'algerbretically' 7:57

  • @AlexVoxel
    @AlexVoxel 6 років тому

    He said that, weird

  • @NawarajS.Paudel
    @NawarajS.Paudel 11 років тому

    Can anybody prove it :Prove that Marginal Rate of substitution MRSxy diminishing if U=f(x1,x2)
    F2^2 F11-2f1f2f12+f1^2f22

  • @Annex41
    @Annex41 2 роки тому

    i stopped at "mental masturbation" (by the way: i felt the same when I understood this context at uni) 😂

  • @economicsfun
    @economicsfun  12 років тому

    You are very welcome! Make sure you like MyBookSucks on FaceBook (see link in video description). This will help me spread the word about the free videos.

  • @ushamukhi1414
    @ushamukhi1414 5 років тому

    thnk u sir but is not visible

  • @economicsfun
    @economicsfun  11 років тому

    You are very welcome. Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.