Price increase - normal good

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Price increase - normal good

Рет қаралды 44,614

G Conomics

Күн бұрын

Пікірлер: 42

@keithhudson3138 6 жыл бұрын

Sir, you just got me ready for my final next week in a big way on this exact topic. On point at the highest level.

@odinponzi9224 7 жыл бұрын

Hungry for Apples

@asifhussain8168 5 жыл бұрын

Sir plz made video in case of inferior good when their prices rises

@suggestmeagoodname8778 3 жыл бұрын

Great explanation sir, Respect from Nepal

@gconomics3766 3 жыл бұрын

Glad it was useful.

@suggestmeagoodname8778 3 жыл бұрын

@@gconomics3766 I found price effect in case of inferior goods on your channel but not in case of giffen goods. If there is any send me one please . I love your explaination and I can't understand in others.

@gconomics3766 3 жыл бұрын

@@suggestmeagoodname8778 Thanks. I haven't recorded a video for giffen goods. I'll try to record a new one in the coming weeks.

@suggestmeagoodname8778 3 жыл бұрын

@@gconomics3766 Ok sir thankyou

@michaelaustin1469 6 жыл бұрын

your illustration makes it seem like the income effect outweighs the substitution however in the case of a normal good the sub effect should overpower the negative income effect

@gconomics3766 6 жыл бұрын

Not the case, Both goods are normal, and the income and substitution effects work in the same direction. In other words, when the price of apples increases, both income and substitution effects reduce the consumption of apples.

@michaelaustin1469 6 жыл бұрын

thanks sorry for the delayed response however what is the case for a giffen good

@sobiajavaid6064 6 жыл бұрын

Sir how do we know that which point is best affordable on a budget line?

@gconomics3766 6 жыл бұрын

sobia javaid this analysis enables you to identify the point at which utility is maximised from a given income/budget - we are trying to highlight where utility is maximised as opposed to which basket of goods is most affordable.

@MahzabinOyshee-hr2kv 9 ай бұрын

Bro just saved my life

@omareldeeb616 3 жыл бұрын

good day, I am always finding difficulty knowing where to place the optimal bundle (point B). For example, why would point B not be slightly higher or slightly lower on IC1? In my textbook, point B is between points A and C as opposed to being lower than both of them. So my question is how do we know where to plot point B? Any help would be much much appreciated. Thanks for the wonderful video

@gconomics3766 3 жыл бұрын

In order to show that both the income effect and the substitution effect reduce the demand for good X (apples), B will appear between points A and C in most textbooks.

@omareldeeb616 3 жыл бұрын

@@gconomics3766 thank you

@vitoscaletta1457 6 жыл бұрын

that was so helpful but tt sound effect after e video brain washed everything .

@ayeshaquratulain1554 Жыл бұрын

From where can we get this book free online ?

@melisamoen967 6 жыл бұрын

great explanation. thank you!

@Sofia-hs1vu 3 жыл бұрын

Hi sir, may you please tell me the mpact of an increase in indirect taxation on the quantity demanded of a good depends on whether it is a normal or inferior good

@mikegee2419 6 жыл бұрын

Thanks sir🤗

@cassiemusongo8824 Жыл бұрын

Thanks a lot

@gconomics3766 Жыл бұрын

No worries!

@parthk496 6 жыл бұрын

Sir but when the price of the apples rises, why BL2 will be drawn inside of Initial BL1??

@gconomics3766 6 жыл бұрын

Parth Khedekar if the price of apples rises then the maximum number you can afford to buy falls.

@parthk496 6 жыл бұрын

Just like in Demand ri8?

@gconomics3766 6 жыл бұрын

Parth Khedekar yes, except it pivots rather than shifts because the price of cola hasn’t changed, therefore, the same amount of cola can still be bought.