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

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!

This 13 minutes is much better than my 2 hours Purdue Econ class. Thank you lol.

This is the best explanation I have ever seen. Even my prof couldn't explain it this well

SOMEBODY GIVE THIS MAN A MEDAL!!!!!!!

It's better than sitting in class for 1 hour learning about this! I choose this all day everyday

There is a massive difference between how you explain stuff vs how other youtubers do. You are a life saver!!!!

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!

this is more helpful than my lecturer

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

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.

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.

You are going to be the reason why I do well on my midterm. Thank you and keep the videos coming.

Excellent video. I read the chapter from Micro Textbook and your video clarified things for me.

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!

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!!

you are the best one who can explain without any confusing students

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

You are better than my professor.

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

eXCELLENT animations and tutorial, you deserve way more views

Thank you very much. This was very helpful for my exams.

That is great to hear and good luck in your class too.

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.

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 ❤️

this 13 minutes video made me more understand than my 2 hours boring class thanks, this video is very helpful

I understand this way better now. Thank you! I wish my professors were this thorough

Best and only video which thought me everything about Substitution and income effect that I clearly understand. Thanks

I'm from Kenya ...and your videos are very helpful ...❤

Very helpful. I appreciated the detail, graphics and the explanation as a whole. Thanks!

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!

Really good explanation, thank you :) Also - you might consider being a therapist in your free time, your voice is so soothing lol xD

u have no idea how much this helped

Totally the best way to teach this tutorial!

My skin cleared up, my relationship has never been better, and student debts paid off thanks to this video 😂💯👌👌

A very simple and easy to understand video, I know well about income&substitution effect after watching this. Thanks a lot!

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.

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

This is amazing - so neat and easy to understand. Videos like these are perfect for visual learners, thank you!

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.

BRO HOW ARE YOU EXPLAINING THIS SO FUCKING WELL??!!?? 👏

You are a savior. Thank you!!

Really helped me in Khanna's Intermediate Micro class at Colgate. Thanks.

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?

i was stuck for quite some time but you made it clear. Thank you

Best explanation so far

very clear illustration, thank you for your work! You saved me

THE BEST EXPLANATION EVER!

Sir that is great : yours teaching is good and I like your lecture I learned a lot from your lecture

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

Really nice lecture for anyone to understand. Thanks a lot for posting such a nice video with clear explanation.

Indeed thats a best explanation i have ever witnessed

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.

best explanation so far

u saved my literal life

best lecturer ever!

so flipping helpful. Got my first assignment on this and you've made it so much clearer!

How do u know where to place the indifference curve II on the new budget line?

Thanks a lot, explained in a very clear way

Brilliant lecture by all standards.

This video made it easier for me to understand. Thanks!

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

The best explanation . Thanks a lot for your hard work.

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!

the pace and explanations are amazing. nice :)

Thank you very much! sir you save a lot students in college

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.

Simple video to understand how to draw two effects. Colorful and dynamic explanation make it easy to understand. Thank you!

this is the best video on this topic!

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?

Could you explain the theory of what happens when the price of good x goes up?

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!

simple and really easy to understand, love it !!!

Thank you very much for this video. The explanation was crystal clear.

Good but would be worth mentioning that you're showing the Hicksian substitution effect.

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...

Thank you so much...you are a life saver.

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?

More than 3 videos create Sleeping Effect though highly educative they are.

Please do for giffen goods.

Wonderful, really amazing explanation of confusing topic.

Alhamdhulillah....seriously its very very very helpful....

thanks for the video, very clear and understandable.

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?

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

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

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?

This is explained very well. Thank you!

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.

makasih banget kak, aku berhasil masuk ui gara2 video kaka

thank you. you explain better than my prof

this video really helped me A LOT. thank you so much!

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

You explained it very well!! Thanks❤

Very useful to students.Great explanation

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!

love you man,can't thank you enough

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

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.

This man is the reason i quit alcohol.