A.3 Marginal rate of substitution | Consumption - Microeconomics

  Рет қаралды 201,844

Policonomics

Policonomics

10 жыл бұрын

Learn more: www.policonomics.com/marginal-...
Versión en español: • A.3 Relación marginal ...
This video explains how to calculate and use the marginal rate of substitution (MRS). We start by learning how to calculate it, then move on to use it in order to properly draw indifference curves and, finally, we analyse the MRS for different kinds of indifference curves.
Related videos:
-Utility function: • A.1 Utility function |...
-Indifference curves: • A.2 Indifference curve...
Related articles:
-Marginal rate of technical substitution: www.policonomics.com/marginal-...
-Marginal rate of transformation: www.policonomics.com/marginal-...
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Learn, and enjoy!

Пікірлер: 24
@greensimon8625
@greensimon8625 8 жыл бұрын
This video is awesome but at the beginning explanation, MRS(x,y)=(MU_x)/(MU_y) should be how many unit of good "y" is the agent willing to give up for an extra unit of good "x" instead.
@Policonomics
@Policonomics 10 жыл бұрын
This video explains how to calculate and use the marginal rate of substitution (MRS). We start by learning how to calculate it, then move on to use it in order to properly draw indifference curves and, finally, we analyse the MRS for different kinds of indifference curves. A.3 Marginal rate of substitution | Consumption - Microeconomics Learn, and enjoy!
@tylercompton9761
@tylercompton9761 2 жыл бұрын
This video was great! Thank you so much that makes so much sense now!
@justchannel2135
@justchannel2135 4 жыл бұрын
Superfine and clean presentation. I totally Loved it.
@serinacat4781
@serinacat4781 6 жыл бұрын
thank you. the video has everything I need to know
@glenipolus9731
@glenipolus9731 8 ай бұрын
omg in 5 minutes you explained something my teacher couldn't explain in 3 hours
@YOSRfakhfakh
@YOSRfakhfakh Жыл бұрын
I love how precise the interpretation was
@felony077
@felony077 10 жыл бұрын
AMAZING !! THANK YOU SO MUCH !!!!!!!
@parvathicheboyina9282
@parvathicheboyina9282 2 жыл бұрын
Hi
@wrjazziel
@wrjazziel 3 жыл бұрын
Good video... 2nd problem: can anyone explain to me why she flipped x and y on the MRS formula, after derivation she got Ux=Y and Uy=x but in the formula she flipped it MRS= Y/X .... please anyone! thanks in advance
@musaa.olarray6456
@musaa.olarray6456 3 жыл бұрын
Wow , I most admit that you clear some challenges for me here but how can I go about solving problems like this U=√XY to find the marginal rate of substitution
@48_subhambanerjee22
@48_subhambanerjee22 2 жыл бұрын
Much love from India.. understood
@94tompa
@94tompa 8 жыл бұрын
Dear Policonomics, why is the formula for the MRS = 2x/2y (or x/y in the second example)? shouldn't it be the other way around? 2y/2x =(u'(y)/u'(x))?
@wrjazziel
@wrjazziel 3 жыл бұрын
I'm alswo waiting for an answer on that :)
@gphilipsen95
@gphilipsen95 3 жыл бұрын
Because in order to get the MRS you need to calculate the marginal utility (MU), the partial derivative, for x and y. In the first example the utility function is given by y^2+x^2. This results in the following partial derivatives: dU/dy (or y')= 2y^2-1=2y and dU/dx (or x')=2x^2-1 = 2x. In the second example the utility function is given by y * x, resulting in a different differentiation due to the multiplication. The dU/dy (or y')= x * y^1-1 = x and dU/dx ( or x') = x^1-1 * y = y . The difference in the first and second example is mainly caused by the nature of the utility functions. Example one uses y + x and example two uses y*x, this makes a big difference when calculating the partial derivatives.
@christinemambo1319
@christinemambo1319 2 жыл бұрын
Thanks so much
@Colonelboereieney
@Colonelboereieney 5 жыл бұрын
Great vid ba
@dibissaejeta4447
@dibissaejeta4447 Жыл бұрын
Given utility function u(x1,x2)=max(@x1,Bx2), find mariginal rate of substitution
@anthonysp7223
@anthonysp7223 6 жыл бұрын
why in example 1 it's x/y but in example 2 its y/x??
@Nic5t4r
@Nic5t4r 5 жыл бұрын
In case you are still interested: f(x)=y¹ * x¹ -> f'(x)= 1 * y¹ * x^(1-1) -> y¹ -> y You differentiate only partially.
@osamahbooshi1600
@osamahbooshi1600 2 жыл бұрын
Its important for you to explain why math is not math in economics. What i mean is when you take the derivative of X and Y they dont just end up As X and Y as the derivative should be 1 and 1. If iam not mistaken.
@DavidRotin
@DavidRotin 8 ай бұрын
They are doing partial derivative. So when deriving the utility function you make one of the variable a constant.
@mogesk.m5445
@mogesk.m5445 Жыл бұрын
Thanks amillion.
@chintubagarty2236
@chintubagarty2236 3 жыл бұрын
Your language is very hard ma'am
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