How to calculate Marginal Rate of Substitution (MRS) using indifference curves

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  • Опубліковано 26 лис 2024

КОМЕНТАРІ • 54

  • @iThinkerer
    @iThinkerer 11 років тому +7

    You have the ability to explain complex concepts in an intuitive way...
    Which makes you a better teacher than most and a lot better at explaining ideas than the vast majority of textbooks which have a ridiculously arcane and non-intuitive way of explaining things.

  • @lulululu175
    @lulululu175 Рік тому +9

    Bro, MRS = -delta Y/delta X. Don't forget the negative when writing your formula. Because one would wonder where the negative at the end goes. For instance the way you wrote it MRS from A to B should be -2 but you just dropped the negative without explanation and indicated that it is 2. It's positive because initially there was a negative sign in the formula which when multiplied with another negative it became positive. Otherwise, the explanation was clear and simple.

    • @edenshuuya4723
      @edenshuuya4723 5 місяців тому

      You just saved me so much time. thank you

  • @lJADU
    @lJADU 10 років тому +32

    Just a little thing: At 5:20, you say y is 20-10 = -10. I think you meant 10-20, as you've got to calculate the NEW value take away the OLD value. :) Additionally, i think it was supposed to be (70-40), not (40-70)..

  • @economicsfun
    @economicsfun  12 років тому +2

    Thanks! That is what I like to hear.
    Make sure you like MyBookSucks on Facebook (see link in video description). This will help other students find the educational videos.

  • @N_lls
    @N_lls 11 місяців тому

    Really I watched many videos but don’t understand, only from you I get it mmmmmmmuuuchh thanks

  • @economicsfun
    @economicsfun  12 років тому +1

    appreciate the kind words. I keep trying to get the word out, so make sure you tell your suffering fellow students.

  • @economicsfun
    @economicsfun  11 років тому +4

    Right, often in economics we drop the sign because it is implied. I should have mentioned that explicity.

  • @economicsfun
    @economicsfun  11 років тому +1

    Thanks for the compliment. Often in economics the slope is ignored or dropped. I am working on some new videos on Consumer Theory where I discuss this explicitly. Great observation tho!

  • @MustangWWII
    @MustangWWII 5 років тому +1

    Thanks for this. Pearson's textbook and online course over-complicates formulas making it appear to much more complicated than it is.

  • @economicsfun
    @economicsfun  12 років тому

    Right, this is a bad habit I have of ignoring signs. I will fix this video in a revised version. Thanks for good observaton.

  • @WHATISUTUBE
    @WHATISUTUBE 12 років тому

    Wow, why couldn't you be my professor. You've essentially made a day lesson short and sweet.

  • @economicsfun
    @economicsfun  11 років тому

    You are very welcome! Happy to hear the channel is helping you. I have channels on statistics, algebra and calculus too. You can see the links on MyBookSucks FB page.
    Make sure you like MyBookSucks on FaceBook(see linking video description). This will help others find the educational videos too.

  • @fcknfrank
    @fcknfrank 11 років тому

    I don't have Facebook, but I will definitely spread the word around class

  • @johnnyharris
    @johnnyharris 13 років тому +9

    this is amazing. Thank you!!!!

    • @-cutekey2454
      @-cutekey2454 Рік тому +1

      yooooooooo what a gem that i found this

    • @Evan.l11
      @Evan.l11 Рік тому

      Wow, this video aided the famous Johnny Harris in acquiring his economics degree!

    • @ameerhejazi5428
      @ameerhejazi5428 Місяць тому

      What the hell? I never thought I would see you in a youtube comment section about Marginal Rate of Substitution LOL.

  • @alfatihbaldo
    @alfatihbaldo 11 років тому +9

    Just wondering, at 3:15 you did -20/10=2 shouldn't it be equal to -2 instead?

    • @lulululu175
      @lulululu175 5 місяців тому

      He forgot a negative sign in the formula at the beginning.

  • @ManuellaEm
    @ManuellaEm 11 років тому

    W's utility function is U (x; y) = xy. W consumes 5 units of x and 25 of y.
    a)W would be willing to make small exchanges of x for y in which he gives up 5 units of x for every unit of y he gets
    b) W would be willing to trade away all of his x for y so long he gets more than 5 units of y for every unit of x he gives up
    (continuing)

  • @economicsfun
    @economicsfun  11 років тому

    Thank you for such an articulate and positive comment. I really appreciate it.

  • @bisikwachriscentia9827
    @bisikwachriscentia9827 7 років тому

    It has made life easier

  • @milind62
    @milind62 11 років тому +2

    I can not thank you enough for this. But I face a problem I wish to go sequentially through all the videos. But can't figure out the sequence. For example I just listened to 'How to find our MRS using indiffrence curve' But which is the next video I should listen to? will you please guide? Thanks again

    • @saurabhhuddar
      @saurabhhuddar 11 років тому

      Try referring to the index of a microeconomics text book. That would help you in arranging.

  • @ManuellaEm
    @ManuellaEm 11 років тому

    ..
    c) W likes x and y equally well so he is always willing to exchange 1 unit of either good for more than one unit of the other
    d) W will always be willing to make trades at any price if he doesn't have equal amounts of the two goods
    e) None of the above
    why is e) the correct answer?

  • @ManuellaEm
    @ManuellaEm 11 років тому +1

    if it is none of the above what is the correct answer?
    thanks!!

  • @sethhampsey404
    @sethhampsey404 11 років тому

    My book does suck haha thank you for the great instruction it relieved so much frustration

  • @johnsallycodrington4935
    @johnsallycodrington4935 10 років тому +10

    Point C to D is INCORRECT!!!!!! It is not consistent with the first two points.

  • @chumamemela6217
    @chumamemela6217 4 роки тому +1

    you're a great teacher man!!!!! you make this shit seem like 1+1, keep it up

  • @RumIsGood1
    @RumIsGood1 12 років тому

    Where are the other thousand like buttons? Like + Subscribed

  • @economicsfun
    @economicsfun  11 років тому

    Nadia, yes I do have some videos on how to calculate the derivative. If you go to my channel economicsfun, you can search on the word calculus and you will see several videos and one of the is on MRS. If you need more help it is probably easiest to send me a message on the MyBookSucks FaceBook Page.

  • @aapb2
    @aapb2 11 років тому

    Hi was just wondering how we would calculate an indifference curves with diminishing rates of substitution that meet at some initial allocation? thank you

  • @fcknfrank
    @fcknfrank 11 років тому

    holy crap thank you for this channel

  • @fortydash1
    @fortydash1 13 років тому

    very very useflu video...helped me with my dumb aplia homework haha Thanks!

  • @economicsfun
    @economicsfun  11 років тому

    Yes many economics books suck, for sure. I thought for a very long time that economics lends itself to animation -- instead of trying to figure out graphs in a book.

  • @RexVirtual
    @RexVirtual Рік тому

    Love this video!

  • @laurase8188
    @laurase8188 5 років тому

    I tried reading my book but it just couldn't understand it. Thank you so much!!! really helpful

  • @juliapimenta908
    @juliapimenta908 Рік тому

    Hi! I've noticed a massive mistake in your video that confused me. You're explaining the mean rate of substitution-the marginal rate of substitution is only calculated with one point using a tangent. I failed a multiple-choice question because of that :)

  • @SenpaiTorpidDOW
    @SenpaiTorpidDOW 11 років тому +1

    Great video, thanks a lot :D

  • @Maso_Ndy
    @Maso_Ndy 12 років тому

    It does not make much of a significant difference though, as we are looking at the absolute value for our conclusion. Thanks for raising the point though.

  • @abrahampatience456
    @abrahampatience456 3 роки тому

    Very understanding, thanks

  • @VicSMeIsTeR
    @VicSMeIsTeR 6 років тому

    Thank you!

  • @economicsfun
    @economicsfun  11 років тому

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

  • @anandrajak8633
    @anandrajak8633 2 роки тому

    Understood

  • @ruchishah2929
    @ruchishah2929 12 років тому

    thanks so much!

  • @economicsfun
    @economicsfun  11 років тому

    You can see links to the economicsfun channel and the MyBookSucks FB page in the video description.

  • @TeddyTefera-q1x
    @TeddyTefera-q1x 9 місяців тому

    Wow ❤❤❤❤❤

  • @prodbyfm
    @prodbyfm 2 роки тому +1

    i hate economics so much

    • @prodbyfm
      @prodbyfm 2 роки тому +1

      i still hate economics

  • @SenpaiTorpidDOW
    @SenpaiTorpidDOW 11 років тому

    I don't have a FaceBook :)

  • @Destiny_Fvcker
    @Destiny_Fvcker 6 років тому

    Thank you so much!