Imaginary economics isn't going to make you rich lol.

@@bunchberry_ so true. The concept of 'utility' is completely rubbish. Ideology has infected economics unfortunately...

@@landcruiserfan4206 I’m currently learning this right now - I had a feeling it was useless. What aspects of economics are worthwhile? Macro economics?

The only thing you'll be rich of are tears because you realized that life ain't handing out free money

💀

It is different.

Are you sure that Sal didn´t prime your learning and Khan, when explaining in a slightly different way made you understand?

How's it possible that the video is one year old and your comment is 6...

@@mamtapandey9504 Video is over 6 years old. Khan academy just changes the title to make the date more recent. So more people can find it

Waiting for you dear🤣

It's been 7 years, can't remember what an indifference curve is 😂 can't say I've ever used it

What did Khan study at college?

Aliens have taken control over time travel!

KZfaq is high again

*SYNTAX ERROR*

why is that? what happened??

@@springdayisnottoday371 Video is over 6 years old. Khan academy just changes the title to make the date more recent. So more people can find it

To note as difference and it is just graphical to realise...

what is the link to the budget line video ?

Excuse me, you're in the wrong class!

Time travel

He's a founding member of Illuminati!!! 🤫🤫 (*dont tell anyone*)

He edited the video which makes it more recent as at then. So whenever you edit any already existing video the date will change to the new one

Because we are relying on the concept of strict convexity, which is a more accurate representation of real-life when compared to the liner line

@@boonsuen1997 Thanks for your reply. So, do you mean that, all real life representations are curved? To be simple, why some graphs are curved and why some are lines in economics? What makes the difference between any curve and any line?

@@Masteridea101, For the most part, yes. It's a curve because your opportunity cost for one good to another will differ at different quantity, etc...

@@boonsuen1997 thanks a lot. Still I'm not clear. But anyway thanks a lot for your efforts to make me understand.

let me try to make this a little simpler so marginal rate of substitution (MRS) basically means how much of B you're willing to sacrifice for gaining one more unit of A. say presently you're purchasing 1 unit of A and 10 units of B, since you're consuming very less of A as compared to B, you'd want more of A and you'd be willing to sacrifice a lot of B to gain 1 more unit of A so let's say you sacrifice 5 units of B for 1 unit of A so your MRS will be 5/1=5 now you have 2 units of A and 5 of B when you compare the two now you're consuming comparable amounts of both if you could gain one more unit of A now you wouldn't be as willing to sacrifice a lot of B for that since the amount of B you have now is lesser than what you had before (ie 10) so you could say B becomes 'dearer' to you now that you have less of it. so now to gain one more unit of A say you're willing to sacrifice only 2 units of B. now your MRS will be 2/1=2 so you see to consume more and more of A you'd be willing to sacrifice less and less of B and your MRS would keep on decreasing since MRS represents the slope of your indifference curve you can say that the slope of the curve keeps on decreasing and that's why your plot cannot be a straight line it has to be a curve and since MRS ie the slope is constantly decreasing, it's a convex curve I really hope I was able to explain this to you i tried to make this as easy as I could bye:)

You really helped me!!

Because the MRS diminishes due to the law of DMU

Indifference curves are assumed to be true. Doesn't matter if they're actually true or not. Microeconomics is very abstract.

@hanswurstfriz Take the two goods whose preference you want to analyze on a co-ordinate plane. Then select any arbitrary point (x1,y1) on the plane. Now move some distance x' in any direction and question if you are better off or worse off at the point (x1+x', y1) as compared to (x1,y1). If the answer is yes then think how should I move(y') in y direction so that I am neither better off nor worse of than (x1,y1). You will now arrive at point (x1+x',y1+y'). At this point you are just indifferent in your preference as compared to (x1,y1). Join these two points and you have a section of your indifference curve. Now repeat this gazillion times 😋

ok phil

chill philip

Lol

take a chill pill Phil