are the demand functions mentioned at the beginning of the video specifically for George? I was confused when she said 'as we know from other videos' - is this some rule for demand functions that I am not aware of?
George - for the utility function given for George at around 0:40, which is a Cobb-Douglas utility function, these are the demand functions. These are derived by solving George's utility maximization problem. You can review the solution to that problem that results in these demand functions on the Utility Maximization video also on this channel. Hope this helps! Thank you for watching!
Sorry George - the video you want to look at to see how to solve for the demand functions is called "Choice" - the solution is about 8 minutes in. Hope this helps!
si, pero no se corre a la izquierda, pivota sobre el "óptimo de esquina". Probablemente ya te habrás dado cuenta de esto solo tras el paso de 4 años. Saludos, amigo!
@@KatherineSilzCarson that means this equation is only useful for calculating demand for only one good because if you take good X into consideration than it won't tally
Two things to remember: (1) The sign of the substitution effect is ALWAYS negative. So, if the price rises, quantity demanded falls. If the price falls, quantity demanded rises. (2) Giffen goods are inferior goods. This means that if income goes up, the amount the consumer buys falls. So, let's put these together and see what we get for a Giffen good. A Giffen good is defined as a good with an upward-sloping demand curve, meaning that consumers buy more as the price rises. Let's take the case of a price increase. If the price rises, the substitution effect results in the consumer buying LESS. Because the price rises, the consumer's buying power falls. Since the good is an inferior good, lower buying power means the consumer will buy MORE. In order for the overall effect from the price increase to be positive, the income effect has to be bigger than the substitution effect. That's what makes a good a Giffen good - it's an inferior good for which the income effect is greater than the substitution effect - resulting in an upward sloping demand curve. Hope this helps. Sorry for the delay in replying.
THANK YOU SIR FOR REPLY . SIR I HAVE SOME MORE QUESTION PLZ CONTACT ME ON MY MAIL hali58163@gmail.com QUESTION ; DISTINGUISH BETWEEN KEYNES'S CONSUMPTION AND KUZNET'S CONSUMPTION .FUNCTION.HOW HAVE THESE TWO FUNCTIONS BEEN RECONCILES?
![(M4E4) [Microeconomics] Finding Income and Substitution Effects: Slutsky Decomposition Method](http://i.ytimg.com/vi/IyzC2_dxsis/mqdefault.jpg)
I am Ethiopian, it is best explanation thank you. Keep it up!!
Thank you for your feedback - and thank you for watching!
Better understood than hours of lecture and text book reading ❤
I am glad this video was helpful! Thank you for watching!
still, eight years later, this video helped me understanding this equation better then my lecture
Glad to hear it! Thank you for watching!
Amazingly expressive and comprehensive .You are so Great Instructor!!! Sweet to listen and blend with
Thank you for the lovely compliment! And thank you for watching!
you are a great teacher, helped me a lot, keep up the work. all the very best.
Thank you for watching, Crystal!
You are a lifesaver! Thank you so much for this video!
Thank you Sangeetha! I am glad it was helpful!
nishant mehras informative lecturers r very helpful to beginners
Thank you for watching!
Thank you so much for this video!!! I finally understood the concept
I am glad this video was helpful to you! Thank you for watching!
finally a useful video about this content. thanks.
Thank you Ahmet! And thank you for watching!
truly appreciate this explanation ! thanks
Thank you for watching!
so much clearer than uni lectures
Thank you for your comment Jake, and thank you for watching!
i dont usually comment on youtube but this was very helpful, thanks
I am glad you found it helpful. Thank you for watching!
Thanks a lot !!!!!!!!!!!!!!!!!!! Right now it is really undersandable compared to my uni lectures.
I am glad you found it helpful. Thank you for watching!
If only I had found this channel sooner
Thank you for watching!
very useful a night before exam 😇
I'm glad it helped, Rajesh! Hope your exam went well!
3 years later, I'm doing the same thing you did
thank you so much you're a lifesaver god bless you
Thank you for watching, Sidharth!
thanks! GREAT video and explains beautifully
+Breezy Bree Glad that you found it helpful!
why optimal bundle of x in substitution effect is 12.5 instead of 11.25? isnt 112.5/(2*5)=11.25?
Yes, you are correct - there is a typo in this slide. Great catch! I apologize for the error.
@@KatherineSilzCarson Thank you for your reply!
This is amazing. Thanks for the explanation.
Thank you for watching!
awesome explanation!
Thank you - I am glad it was helpful for you! Thank you for watching!
At 4:54 Isn't 112.50/2(5) = 11.25, Not 12.50?
Econ S yes it is ! And your comment did save my confidence in math!
bro shit 02:00 am ı just found this lol
Yes exactly what I was thinking
Thank you so much...It was a big help!
+sahaaveek3 Glad that you found it useful. Thank you for watching!
best explanation out there
Thank you!
by god i wish you were my lecturer
Thank you Frances, you made me smile! I'm glad this video was helpful to you, and thank you for watching!
Maam where can i find more of your videos?
Here is the link to my channel: ua-cam.com/channels/9lcVahdtrfDtU7oUu8c-lg.html Thank you for watching!
amazing explanation! thanks so much!
Thank you for watching!
are the demand functions mentioned at the beginning of the video specifically for George? I was confused when she said 'as we know from other videos' - is this some rule for demand functions that I am not aware of?
Yeah it's from the video on 'choice' . Review that video then you'll understand bro
George - for the utility function given for George at around 0:40, which is a Cobb-Douglas utility function, these are the demand functions. These are derived by solving George's utility maximization problem. You can review the solution to that problem that results in these demand functions on the Utility Maximization video also on this channel. Hope this helps! Thank you for watching!
Sorry George - the video you want to look at to see how to solve for the demand functions is called "Choice" - the solution is about 8 minutes in. Hope this helps!
Lecture is good but it's accompanied by a lot of errors calculate as well as graphically
Please provide us a timecode to where you found the errors.
Very useful video! thanks!
Thank you for watching!
You are a life saver!
THIS WAS SO USEFUL!! THANK U
Thank you! I am glad it was helpful!
Thanks ❤️❤️
You're welcome! Thank you for watching!
From what I have learned, the indifference curve stays constant during substitution effect. Why is it increasing here?
That is an alternative way of measuring the substitution effect that some textbooks use.
You’re amazing
Thank you for watching!
زيادة السعر تؤدي الى دوران خط الميزانية نحو اليسار لانو m/p
تصير اصغر
si, pero no se corre a la izquierda, pivota sobre el "óptimo de esquina". Probablemente ya te habrás dado cuenta de esto solo tras el paso de 4 años. Saludos, amigo!
Very USeful Thank you
Thank you for watching!
I 'm grateful
Can you explain how you derived the demand functions?
The demand functions are the solution to the consumer's utility maximization problem. I can give you more detailed steps to solve if you need.
Hi. Yes, that would be very helpful. Thank you.
Never mind, I found out how it was done by looking at your other video. Thanks again, these have been very helpful.
Thank you so much , for I got it now.
+Makuen Nyawar Makhot Thank you! I'm glad you found it to be helpful.
+Katherine Silz-Carson sure! I wish you are my lecture or we related by blood cuz you're good lecturer.
Thank you!!!
Thank you for watching!
Is there a mistake in this video? 112.5/2(5)= 11.25?
+Joe Moran Yes there is! Thank you for catching this!
Ah okay thank you. I wasn't sure if I was missing something. The video was very helpful though. Do you have a video on the Hicksian decomposition?
+Joe Moran Sorry - I don't currently have a video on that topic.
@@KatherineSilzCarson that means this equation is only useful for calculating demand for only one good because if you take good X into consideration than it won't tally
Is it true
so what about giffon good case
Two things to remember: (1) The sign of the substitution effect is ALWAYS negative. So, if the price rises, quantity demanded falls. If the price falls, quantity demanded rises. (2) Giffen goods are inferior goods. This means that if income goes up, the amount the consumer buys falls. So, let's put these together and see what we get for a Giffen good. A Giffen good is defined as a good with an upward-sloping demand curve, meaning that consumers buy more as the price rises. Let's take the case of a price increase. If the price rises, the substitution effect results in the consumer buying LESS. Because the price rises, the consumer's buying power falls. Since the good is an inferior good, lower buying power means the consumer will buy MORE. In order for the overall effect from the price increase to be positive, the income effect has to be bigger than the substitution effect. That's what makes a good a Giffen good - it's an inferior good for which the income effect is greater than the substitution effect - resulting in an upward sloping demand curve. Hope this helps. Sorry for the delay in replying.
THANK YOU SIR FOR REPLY .
SIR I HAVE SOME MORE QUESTION PLZ CONTACT ME ON MY MAIL
hali58163@gmail.com
QUESTION ;
DISTINGUISH BETWEEN KEYNES'S CONSUMPTION AND KUZNET'S CONSUMPTION .FUNCTION.HOW HAVE THESE TWO FUNCTIONS BEEN RECONCILES?
السلام عليكم اكو مترجم للعربي
Podia ter uma legenda em
Obrigado por ver! I have been told that You Tube's automatic captioning feature works pretty well with my videos - you might try that.
well done
+Brendan P Thank you!
thanks!
+Dana Muratbek You're welcome!
Thank you so much
You're welcome!
Could you share the ppt?
+Jack Napster Sorry for the delay in replying. I can share the ppt if you can provide me with an email address to send it to.
pavitrajain@hotmail.com
Thank You very much!
Jack Napster me too?
thanks
Soooooo clear
Thank you! I am glad that this video was helpful for you.
100/5 =20
Slow down lady.
Gosh!!
+sidd chugh change the speed to 0.5 if you have to
I 'm grateful
Thank you for watching!
I 'm grateful