Its criminal that universities cannot explain concepts as well as what you can find on the internet, FOR FREE. I salute you sir, doing gods work
@alexmaranga2180 Жыл бұрын
Yet they ask that question
@user-mb7ov8bs8f5 ай бұрын
My Uni dosen't even have the lectures for eco. They just gave us a book... Oh no... They told us what book to Buy.
@Wthieme18 жыл бұрын
I understand income and substitution effects much better after watching your video. Its more informative and easy to follow than either my professor or my textbook. Thank you!
@economicsfun8 жыл бұрын
+Will Thieme You are very welcome. Hopefully you will get a chance to share and like the videos. This will help others find them.
@weaselychicken8 жыл бұрын
+Babar Ahmad Khan Wtf are you on about mate
@91099Babar8 жыл бұрын
gooby goobton something We shall reveal everything of how your teaching staff pick on Asians for harassment and blackmailing purposes and failed them by design if he denies to pay you money for your vacations ?
@arzunurpolat9 ай бұрын
The good is a inferior good. What happens if the price of substitute goods increases? How do the demand shifts change? Can u please answer my question?
@Panda1991ish8 жыл бұрын
This 13 minutes is much better than my 2 hours Purdue Econ class. Thank you lol.
@billwalton10915 жыл бұрын
Shout out Econ 251
@AK.10 жыл бұрын
This is the best explanation I have ever seen. Even my prof couldn't explain it this well
@PrimeAliProductions10 жыл бұрын
SOMEBODY GIVE THIS MAN A MEDAL!!!!!!!
@olivesolive15854 жыл бұрын
🎖
@sivarajlingam14483 жыл бұрын
🥇
@abhilashadas115 Жыл бұрын
🏅
@Tumelo_M398 Жыл бұрын
@@abhilashadas115hey
@stevenxie150510 жыл бұрын
It's better than sitting in class for 1 hour learning about this! I choose this all day everyday
@jacobzerty Жыл бұрын
There is a massive difference between how you explain stuff vs how other youtubers do. You are a life saver!!!!
@dylankrejci99652 жыл бұрын
Wow, your simple graphic of sliding the new budget line to be parallel to old indifference curve made way more sense to me than my professor drawing everything out on paper. Thanks for this awesome video!
@mikeblack91098 жыл бұрын
this is more helpful than my lecturer
@mmmnnn3026 жыл бұрын
Mike black really
@sharissasterling37202 жыл бұрын
Thank you so much this was so simple. After a week of classes, and several failed attempts at self learning, I finally understood. I actually want to cry, thank you so much
@ashleyyy80362 жыл бұрын
I just wanna appreciate how organized and clear and neat this explanation is. This is so good. So good. So amazing. So nice. So clear. So nice.
@hodlatodla53642 жыл бұрын
Great video. For those that wish to go into some details: The intermediate baskets of goods in the video were all constructed with the Hicks method for finding "income-neutral" baskets. There is another method, the Slutsky method, were the intermediate basket of goods is built with a parallel line to the new budget line that we find (and here's the difference between the 2 methods) by stopping once the parallel line touches the original basket of goods. Our Slutsky budget line will be tangent to a new indifference curve at a point; this point is the Slutsky intermediate basket to be used for the Slutsky decomposition.
@ahccah8 жыл бұрын
You are going to be the reason why I do well on my midterm. Thank you and keep the videos coming.
@economicsfun8 жыл бұрын
+ahccah Thanks, but you deserve all the credit. Good luck in your studies. Hopefully you can like and share the videos so other students can find them.
@theuniverseeconomics7 ай бұрын
Excellent video. I read the chapter from Micro Textbook and your video clarified things for me.
@remixowlz3 жыл бұрын
Your video animation as well as explanation is world class! As a visual learner it really helped me a lot! Thank you for your effort in creating such in-depth tutorials! Cheers Subbed!
@sweetsue101410 жыл бұрын
OMG this is by far the most simplist and logical way to explain the income and substitution effects! I been trying to understand how to do it with many videos and they could not explain it! I love this video!! Thank you sooooo much!!
@streetlife38667 жыл бұрын
you are the best one who can explain without any confusing students
@sakshamkatiyar50485 жыл бұрын
With my textbook I use to sleep in these type of topics.....but here it is made so easy to grasp..... Thanks a lot...♥️from India
@pkpk130910 жыл бұрын
You are better than my professor.
@bamschilders4 жыл бұрын
Slow, but so effective, perfect pace. Thank you very much, it wasn't that clear when I read my book but it is now clear
@MegaNerevar8 жыл бұрын
eXCELLENT animations and tutorial, you deserve way more views
@economicsfun8 жыл бұрын
+MegaNerevar Thanks! I am working my way up the view latter. Like and Share, it helps get the word out.
@deshanibandara96183 жыл бұрын
Thank you very much. This was very helpful for my exams.
@economicsfun10 жыл бұрын
That is great to hear and good luck in your class too.
@alinafotova63643 жыл бұрын
*Only 18* 👇👇👇 734867.loveisreal.ru
@economicsfun11 жыл бұрын
Brianna, thanks for that. It is good to know that you think my videos are the best vides ever. If you have not already done so, Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.
@nandinigupta53012 жыл бұрын
Explained in an excellent way with correct use of graphics. Haven't seen such a neat explanation before. Thanks a ton! :) Keep making such videos ❤️
@ED-iq3mv2 жыл бұрын
this 13 minutes video made me more understand than my 2 hours boring class thanks, this video is very helpful
@KermitDominicano Жыл бұрын
I understand this way better now. Thank you! I wish my professors were this thorough
@arshansoleymanianfar8546 жыл бұрын
Best and only video which thought me everything about Substitution and income effect that I clearly understand. Thanks
@user-zn4em4ms4c9 ай бұрын
I'm from Kenya ...and your videos are very helpful ...❤
@erikgregorywebb9 жыл бұрын
Very helpful. I appreciated the detail, graphics and the explanation as a whole. Thanks!
@rupertron6 жыл бұрын
Wow! You should be doing this full time! The video was superb, and the animations were spectacular- very lucid and self-explanatory. Kudos, and much thanks!
@MyDearKyoKun10 жыл бұрын
Really good explanation, thank you :) Also - you might consider being a therapist in your free time, your voice is so soothing lol xD
@akashchakraborty10815 жыл бұрын
u have no idea how much this helped
@economicurtis10 жыл бұрын
Totally the best way to teach this tutorial!
@ehurnlee6 жыл бұрын
My skin cleared up, my relationship has never been better, and student debts paid off thanks to this video 😂💯👌👌
@Yukokaisian8 жыл бұрын
A very simple and easy to understand video, I know well about income&substitution effect after watching this. Thanks a lot!
@economicsfun10 жыл бұрын
You are very welcome! Make sure you like MyBookSucks on Facebook too (see link in video description). This will help others find the educational videos. Good luck in your classes to.
@abhishek89517 жыл бұрын
thank you soo much .. you made my day so easy ... what i was able to understand in one full day .. you did it in 13 min
@racheldiiazd6 жыл бұрын
This is amazing - so neat and easy to understand. Videos like these are perfect for visual learners, thank you!
@raziqsadaqa98383 жыл бұрын
Yeah . 😍
@economicsfun11 жыл бұрын
Thank you. I don't have an econometrics channel but I do have a whole channel on statistics called statisticsfun. You should be able to see a link from this channel to my other channels.
@josephdenney3513 жыл бұрын
BRO HOW ARE YOU EXPLAINING THIS SO FUCKING WELL??!!?? 👏
@sarinapathak76324 жыл бұрын
You are a savior. Thank you!!
@gex60624 жыл бұрын
Really helped me in Khanna's Intermediate Micro class at Colgate. Thanks.
@wjtan3518 жыл бұрын
how do you draw the parallel line, that is tangent to the 1st indifference curve? How do you find the points at which they are tangent? How do you find point C?
@hashtaggaming6473 Жыл бұрын
i was stuck for quite some time but you made it clear. Thank you
@demboahmed9606 ай бұрын
Best explanation so far
@lucifeers3219 Жыл бұрын
very clear illustration, thank you for your work! You saved me
@anatolijputnja4159 жыл бұрын
THE BEST EXPLANATION EVER!
@babokhan24432 жыл бұрын
Sir that is great : yours teaching is good and I like your lecture I learned a lot from your lecture
@mohanbandaru066 жыл бұрын
Consider two goods X and Y. Explain income effect and substitution effect of a rise in the price of good Y if: X and Y, both are inferior good X and Y, both are Giffen good X and Y are perfect substitutes X and Y are perfect compliments
@ckumarish10 жыл бұрын
Really nice lecture for anyone to understand. Thanks a lot for posting such a nice video with clear explanation.
@talalahmedkhan45445 жыл бұрын
Indeed thats a best explanation i have ever witnessed
@economicsfun11 жыл бұрын
Yes I will. I am also adding more content. I have channels on Statistics too. Make sure you like MyBookSucks on Facebook (see link in video description). I post new material there as well and you can find links to all my channels.
@bernicelaryea4984 Жыл бұрын
best explanation so far
@rebeccaluo65703 жыл бұрын
u saved my literal life
@Yamkeladamoyi2 жыл бұрын
best lecturer ever!
@TomLune10 жыл бұрын
so flipping helpful. Got my first assignment on this and you've made it so much clearer!
@minnieyuusa10 жыл бұрын
How do u know where to place the indifference curve II on the new budget line?
@deepakthapa952810 жыл бұрын
even i have same problem. Confused where to put ic curve :(
@RangeAhmed10 жыл бұрын
i think the way you have to look at it is you're answering a question. If the good is a normal good, then the income effect is positive and therefore the new indifference curve will have a to reflect the new (higher) quantity of the good that will be purchased. The same goes for decreases in price. For inferior goods, the income effect is negative and therefore the new indifference curve you draw must reflect the respective outcomes that occur when price rises/falls for an inferior good. So just look at what the question wants and from there draw your graphs! I hope this helped!
@Naeemkhan-rv4kf6 жыл бұрын
for that u hv to read indifference curve properties, that it always convex to the origin
@MathsHistoryHelp6 жыл бұрын
I believe as long as you are within the boundaries of the original curve, which itself a subjective point. The curves can be drawn in different places, as long as they are tangent to the budget constraint line
6 жыл бұрын
As far as I know, you always place it at the max satisfactory bundle/point which is where the slopes of both the budget line and the indifference curves are equal.
@sonialai55929 жыл бұрын
Thanks a lot, explained in a very clear way
@williamsoforiatta42238 жыл бұрын
Brilliant lecture by all standards.
@jzmnclrxx2 жыл бұрын
This video made it easier for me to understand. Thanks!
@epiclegend38254 жыл бұрын
I have a real question, for inferior good why is the IC2(indifference curve2) placed differently tangent to the Budget Line 2 compared to the normal good? It's somehow placed too much up along the budget line whereas for normal good it's placed on the middle
@gunelgunka7 жыл бұрын
The best explanation . Thanks a lot for your hard work.
@raziqsadaqa98383 жыл бұрын
Yeah
@sopiahmohdnoh73779 жыл бұрын
the best explanation that i have seen.however the last part,i think the indifference curve should not cross each other but still the explanation is not wrong.Keep going sir!
@economicsfun9 жыл бұрын
Sopiah Mohd Noh Yes you are correct indifference curves should not cross, it is just the way I drew them (or drew parts of the indifference curves). Good luck in your studies and thanks for the feedback.
@sopiahmohdnoh73779 жыл бұрын
Keep up the good work sir love ur explanation!
@clenchneerspoor8 жыл бұрын
the pace and explanations are amazing. nice :)
@tonyzeng1957 жыл бұрын
Thank you very much! sir you save a lot students in college
@economicsfun10 жыл бұрын
The parallel shit in the budget line is due to an increase in income. The prices remain the same, so the slope of the line is the same too.
@laitc4567 жыл бұрын
Simple video to understand how to draw two effects. Colorful and dynamic explanation make it easy to understand. Thank you!
@vesaarifi82802 жыл бұрын
this is the best video on this topic!
@MrMenace321010 жыл бұрын
Great vid. Could you explain how, for the increase in income on the inferior good, the quantity of X goes up? specifically, what is good X and what is good Y?
@LuisNanix17x9 жыл бұрын
Could you explain the theory of what happens when the price of good x goes up?
@jeffbates15383 жыл бұрын
I'd only request that you work in the Hicks Demand Curve that ties into the I and S Effects. Otherwise, this helped a lot, thanks!
@humayra_2858 жыл бұрын
simple and really easy to understand, love it !!!
@economicsfun8 жыл бұрын
+Humayra _ Great to hear and thanks for letting me know my videos are helping you. Hopefully you can like and share the videos so other students can find them.
@yathmiabayasekera90024 жыл бұрын
Thank you very much for this video. The explanation was crystal clear.
@francrulex195 жыл бұрын
Good but would be worth mentioning that you're showing the Hicksian substitution effect.
@masterdrummer199 жыл бұрын
This is great and all.. helps a lot, but all i see is that b is put on at a different place on the budget constraint? you could slide B down the constraint and have the same thing as normal goods...
@AurniTasnim9 жыл бұрын
+Jack Comoss exactly my question. how do we know where to put B?
@bulebegins8 жыл бұрын
+tazzy taz but the fact of the matter is that this is an example of ie and se, yes you could put B anywhere to the right of A but its just an example
@TheOnePath5708 жыл бұрын
+Jack Comoss not only is b put in a different place, it's on a *differently positioned* indifference curve too. curve II is higher for an inferior good and thus point b is repositioned (both for the same proportion of rotation of the budget line)!
@dareajayi256310 жыл бұрын
Thank you so much...you are a life saver.
@economicsfun11 жыл бұрын
Very good questions. The concept of the parallel line is to "simulate" a shift in income. If income changed how would the consumer change consumption. Make sense?
@marmarakazm75935 жыл бұрын
More than 3 videos create Sleeping Effect though highly educative they are.
@Black182heart9 жыл бұрын
Please do for giffen goods.
@ianmezar24504 жыл бұрын
Exactly, this man is Batman of economics
@swaggyskye3 жыл бұрын
@@ianmezar2450 His parents: 👀
@ahmadsaleem53166 жыл бұрын
Wonderful, really amazing explanation of confusing topic.
@Rifkhan_Ahamed2 жыл бұрын
Alhamdhulillah....seriously its very very very helpful....
@huiahhhhhАй бұрын
thanks for the video, very clear and understandable.
@ILURBSUSHI7 жыл бұрын
How do you determine whether it's a normal or inferior good if the question didn't give you points A and B coordinates. How do you go about knowing which food is which?
@ILURBSUSHI7 жыл бұрын
Good*
@br0wnsugar939 жыл бұрын
I understand the substitution effect; that since good X becomes more expensive, we consume more of good Y and less of good X, but stay on the same indifference curve. My question though is why not just stay at point C? Why do we move from point C to point B in the video if you can afford getting the bundle at point C? Could someone please explain what the income effect symbolizes? :) Awesome video
@princesslizzyhighlyfavoure5008 жыл бұрын
Thank u so much...u made this topic so easy...i watched like a million videos and still i couldnt understand...not to mention the stupid text book that they make so flipping complicated....thank you once again
@economicsfun8 жыл бұрын
+Princess Lizzy You are very welcome Princess. Hopefully you can like and share the videos so other students can find them.
@Enigmo16 жыл бұрын
do we ever talk about how the substitution and income effect affects the consumption of good Y as a result in change in good x?
@michellelal9625 Жыл бұрын
This is explained very well. Thank you!
@dulcearie7 жыл бұрын
i think you mixed up the normal and inferior graphs. for normal goods the 3rd budget line is actually a parallel shift inward to the 2nd budget line as well as tangential to to the first indifference curve.
@marshajessirapameswari55562 жыл бұрын
makasih banget kak, aku berhasil masuk ui gara2 video kaka
@harrythefrog17323 жыл бұрын
thank you. you explain better than my prof
@calliemoon8 жыл бұрын
this video really helped me A LOT. thank you so much!
@FretPaul8 жыл бұрын
Hi, guys! Thanks for the video, it's very helpful. But please help me to understand something here: why is the second indifference curve, for an inferior good, drawn upper in the budget line then it is in a normal good? Is it a pattern we have to follow? Is there any reason for that? Because in case of giffen goods (not shown in this video), for instance, I've noticed that this same second indifference curve is drawn even upper in the budget line, it almost touches the Y axis. PLEASE HELP! I really want to understand this. Kind regards, FP
@Chelsieenim Жыл бұрын
You explained it very well!! Thanks❤
@drmvnarasimhasarma10 жыл бұрын
Very useful to students.Great explanation
@nqvietanh3436 жыл бұрын
the concepts of income effect and substitution effect, I don't know why even professors at a popular university even having a tough time to explain to the lay people!
@hamimibnebashar81732 жыл бұрын
love you man,can't thank you enough
@brunelngoufack99766 жыл бұрын
Hi. I think there is a mistake on your definition of inferior good. you said, "overall the price of X goes down but the quantity consume of X goes up". For an inferior good when the price goes down the quantity also goes down and when the price goes up the quantity consume equally follow the price and move up. This is the so-called Counter-intuitive Effect. You said that after 4:21 on your video. kind regards Brunel
@Murat-en7lt7 жыл бұрын
Hello guys i have a question For each of the following statements defined all of the underlined terms.Then explain why the statement true or false a)the substitution effect from a price increase states with that the consumer will always choose a smaller amount of that good to consume.However the income effect states that consumption can move in either direction b)all giffen goods are normal goods, but not all normal goods are giffen goods.