(M3E10) [Microeconomics] Indirect Utility Functions and Lump-Sum Principle

[@siyabongathokozanishiba6950]

👍🙏that was so informative, thank you so much for such detailed clarification.

[@tubeone4918]

Great sir

[@garygaza5545]

Thanks! Very concise

[@NiWo-y8x]

what can you say about the lumpsum principle in perfect complement utility function

[@ChristianTv216]

Well explained

[@rajeshsahoo582]

Thank you sir for giving us use full knowledge about indirect utilities

[@dreamerlearner6610]

Source nicholson n snyder!

[@sasni3465]

could you please explain about your conclusion (18:24) about why the 2 scenarios collect the same tax =$2
because if we try to solve tax revenue in scenario 2 it will be $3
However, i'm not really sure about my result

[@NapolyonKiKo]

In the second scenario we chose income taxation. Remember our initial income, I, was $8. So, I=8.
Then, even if we stop taxing the goods, we still want two dollars worth of taxation revenue. So our income tax is $2.
Thus, our income minus taxes, I*, is 8-2=6 dollars.
Therefore, our tax revenue I - I* = 8 - 6 = 2.
You see, it is not even a conclusion. Our tax revenue is a goal that is intially given.

[@shahshah137]

@@NapolyonKiKo I think u forget to take root of income that is root 6

[@franklinchukwuemeka3785]

Thank uuuuuu 😭

[@ererer6266]

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