00:00 Lecture outline 00:53 Deriving Demand Curves 10:35 Elasticity of Demand 12:23 - - > Perfect Inelasticity 15:03 - - > Perfect Elasticity 19:14 Income Shifts 23:29 - - > Normal & Inferior Goods 25:59 - - > Luxuries & Necessities 28:09 Effects of Price Change 29:35 - - > Substitution 33:10 - - > Compensated Demand 40:19 - - > Income Effect 44:21 - - > Inferior & Normal Goods Comparison Table 46:28 - - > Giffen Goods

What a privilege it is to have access to this incredibly useful information presented by such a distinguished spork advocate

Dude just murdering chalk every lecture hahaha

SOME MISTAKES IN THE VIDEO TO CONSIDER WHILE TAKING NOTES @ 2:21 bc1 and bc 2 are mixed up @7:27 the demand curve should have price on the y axis which is wrongly marked as pizza and point B should have price 9 instead of 7 👆These are from @yashchugh9132's comment below. 👉And also @40:20 , point B should be tangent to the dotted line.

I'm currently a first year economics student in the UK, and these lectures have been super useful revision tools for my microeconomics module. Great job here.

literally saving me from desperately useless lectures that I have...Thank you for uploading this

Here is the place, I was looking for, MIT is contributing to education so much that I can't explain. Love it

I haven't even taken a microeconomics class yet, but his lecture are extremely interesting to the point I'm learning the material

@ 2:21 bc1 and bc 2 are mixed up @7:27 the demand curve should have price on the y axis which is wrongly marked as pizza and point B should have price 9 instead of 7

Great videos ! Can't believe it's free, no add, and is of such high quality. I had to start my background in econ from scratch, CFA lvl1 expects you to know the basics before learning their materials ... It's funny to see all these implicite references to multivariate calculus, without being explicitly mentioned. You can always solve for the optimum nbr of pizzas and cookies by using a Lagrange multiplier to apply the budget constraint. Something like minimizing L = 1/U - lambda*(Qp*Pp + Qc*Pc - Y). 1/U because maximizing Utiliy is like minimizing its inverse. Solving the partials for Qp, Qc and lambda (prices are known), yields the result. Few mistakes in the images watch out (D curve has price in ordinate NOT pizzas), and when Pc increases, the new dotted line should be tangent to B (it's not in the image, but it should be). Hope that'll help someone.

Am an undergraduate Economicst from Nigeria and this is helpful to me THANKS

8:46 Question: Regardless of the utility function, is it always true you still want 3 pizzas? 10:02 Could we use 3 as a constant? 11:49 Is this the change in quantity of the new quantity to the old quantity or old quantity to the new quantity? 18:25 Would market for dollar bills be perfectly elastic?

I like that these videos have no adds

Thanks for sharing this, it's saved me from my teacher's nonsense lessons

Thank you for this wonderful lecture. And thanks a lot to the (wo)man who wrote captions and the (wo)man who shooted this and also the one who uploaded it and MIT.☺

My dream to go to MIT but I cannot afford it! Love KZfaq

I think its the only time in my life that I would love being a University class watching this....

These lectures are very good for very good students but for relatively weaker or even normal students, especially in countries where English is not the first language for most students, students most likely won't be able to understand most of the lecture. I showed these video lectures to my year 1 students and almost all of them could not follow.

I think there is an error on the graph at 39:10. Isnt point B placed incorrectly, and should be placed on the curve where it is tangent to BC'.

Any lectures on Mathmatical methods of economics.

In 40:34, shouldn't be the point B in the tangency between the dotted line and the indiference curve BC1?

The idea of Giffen good comes from observation of victorian era poor. From wikipedia: As Mr. Giffen has pointed out, a rise in the price of bread makes so large a drain on the resources of the poorer labouring families and raises the marginal utility of money to them so much that they are forced to curtail their consumption of meat and the more expensive farinaceous foods: and, bread being still the cheapest food which they can get and will take, they consume more, and not less of it.

You are a great teacher.

Thank you so much for uploading this lecture!

이번년도 경제공부 시작의 기초!!

Thank you for uploading this.

I think that spork dude peek the lecturer notes

Is there an error in figure 4-1 with the axes? I got the impression the y axis should be price of cookies not pizza.

Is there any discord server for economics community?

in the real world, how do you choose the 2nd product from your budget constraint? based on different comparative products you get also different demand curves, so what do you choose?

For Steak and Potato example; After increasing Potato price form 1 to 3 dollars how did he get to point B where potato demand was 4 and steak 5.2? Can't make sense of graphs. Did he just pick that number out of nowhere to illustrate the point of an inferior good?

I believe the x and y labels of the 2nd chart are wrong, they should be quantity and price for the cookies.

40:40 aren't the Indifference Curves poorly drawn? If you expand them they cross each other and that should not be the case

19:03 What determines elasticity is substitute-bility. The more substituable goods are, the more elastic-ly demanded they are 38:05 Intuitive definition of Substitution Effect & Income Effect

anyone skipped all the lectures at their uni and now watching this to get ready for the finals?

10:36 Elasticity of demand

everything about this would be simpler and more straightforward if you graphed things with price on the X axis in your price and quantity graphs.

"I reject your spork option"

Great lecture

Steak doesn't leave you hungrier long term. You'll be hungrier sooner if you fill up on carbs (potatoes) protein satiates for far longer and you need less of it overall. Potatoes may be a survival food, but no they are not better on any level, including nutritionally.

Super helpful, thank you so much!

I fucking love potatoes

Elasticity of D,now thats a good topic to study🤔🤔

In the case of food, I have to add that the Financially Educated rich eat less fast food, cause the poor eat more as soon as they start earning more money, that's a fact and it's because most work longer and that decreases the time they dedicate to a dinner, therefore, more money, more fast food. From here it's also derived that by not having time, they are not educated either and therefore they remain in the poor stage even if they earn more per hour.

Can anyone explain why the Engel curve at 22:43 is not perfectly elastic? When I come grows 1/3 (72->96) so does quantity (6->9). When it shrinks 1/3 (72->48) so does quantity (6->4). Same if you consider the other way (48->72 is 1/2, 4->6 is 1/2). So how comes it doesn’t have constant elasticity?

@46:15-->isn't substitution effect always negative?

Give me an example for elastic demand. Student: Spork 😂 😂

Label of figure 4-1b is wrong. The Y axis is the price, not pizza.🙂

I thought this professor just said a Giffen good has an upward sloping demand curve, so how exactly does the chinese rice example show that if they bought LESS rice?

33:26 moving to point B doesn't mean that I have less cookies but more pizza?

here in india rich people eat more fast food whereas poor people prefer real food

Was multivariable calculus required for this course? Id imagine not. To me this seems like another case where students are confused because their mathematical background isnt yet strong enough to really understand the underlying principles. The students seemed highly confused by partial derivatives (change in one variable holding others constant) but if they understood multivariable calculus this would have been the easy part and they could focus on the economics rather than getting lost in the math

Amazing😍😍😍

Thanks for the lecture

very informative and fun to learn!

Does anyone know if he covers lagrangian multipliers in this class?

8:50 where can i get those notes?

Are there any section materials published?

I took calculus 6 years ago, I don't remember Episonlon.( good thing i still have my textbook)

is insulin an example of perfectly inelastic and inferior product?

Where can we get notes ( handouts etc.)

This guy is chalk's worst nightmare.

Lol his spork reaction

Thank u

21:30

Could anyone tell me that this all stuff is from where? I mean is it from first semester or anything else??

Where did the indifference curve C in 31:41 come from?

16:47

That's a interesting idea 😁

I should have watched this before quiz

34:06

12:12

16:17 xD

perfectly elastic example: coffee substitute with tea

most internet porn is perfectly substitutable

hehe 35:13

👍👍👍👍👍👍👍👍

Do Americans always have to add "Like" to all their sentences?

Income effect is negative or positive?

There is a mistake in name of y axis in graph 4-1b, should be Price instead of Pizza. 🙂

I miss face-to-face classes :(

hey brotendos, anyone wanna join me for some ranch throwing up on the quad after class?

The statement that 3 slices of pizza and 6 cookies can make somebody happy is a slight exaggeration. Even American constitution does not guarantee happiness It guarantees the pursuit of happiness only.

16.00 coca cola and pepsi

Lol in India were studying this in 11th standard

This Prof. should have focused more on Case based teaching rather than overemphasizing theoretical perspectives. Moreover, things could be better presented in a mild and lucid way with a specific and focused approach rather than wasting so much of energy speaking so loudly. By the way, Economics is not Business communication.

28:18

16:18