Understanding Slopes of Budget Lines (Budget Constraint)

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Understanding Slopes of Budget Lines (Budget Constraint)

Рет қаралды 81,396

Күн бұрын

Tutorial on how to determine the slope of a budget line and how to transform the equation M=xPx+yPy into y = M/Py -x(Px/Py)
Playlist on Consumer Theory
• Consumer Theory
MyBookSucks FB / partymorestudyless
Created by David Longstreet, Professor of the Universe, MyBookSucks / davidlongstreet

Пікірлер: 24

@yoloyolo3003 6 жыл бұрын

This channel is seriously underrated. But it could help more if you explained the math, like why divide by 1/py or subtract by Px.

@mylifeisinhishandsamen4167 10 жыл бұрын

Thank you so much for this...Very helpful

@opop180 Жыл бұрын

Thank you so much!!! It helps me a lot

@janetf3431 8 жыл бұрын

Great video. Thank you!

@tranvo1846 8 жыл бұрын

Can someone please explain to me why the slope is -Px/Py but when you put in the actual numbers its the opposite? Like say you have (4,0) and (0,8) so the slope would be -2 but -Px/Py would make it -1/2 i'm so confused????

@jonnygardiner3350 7 жыл бұрын

don't understand this either somebody pls help

@_jkanderson 6 жыл бұрын

The slope calculation is using the quantities of the two goods (given a specific income), and the -Px/Py are the individual prices of the goods.

@unlimitedentertainment6173 6 жыл бұрын

so is the slope of the budget line negative? since its downward sloping

@afnanrazzak2280 7 жыл бұрын

great. then again you should give more "why you do this and that"

@ichooseluna 7 жыл бұрын

I love ur videos so muuuuuch:)

@alannazhao3396 4 жыл бұрын

omg thank u so much!! this helped a lot :)

@katusabebrenda1228 2 жыл бұрын

What does a negative mean on that formula

@MyHanhkool 9 жыл бұрын

Great I love it

@user-eg9vw3zc2m 9 жыл бұрын

Thank you so much!!!

@economicsfun 9 жыл бұрын

김형준 You are very welcome.

@Waleedkhancooldevil93 6 жыл бұрын

Vertical intercept = M/py and what about horizontal intercept?

@dishacommerceclasses5981 3 жыл бұрын

Horizontal intercept represents consuming all the money that you have on goods shown on X-axis. Supposing A person has 100 dollars he can spend either on Good X or Good Y. spending all 100 dollars on Good x represents Horizontal intercept.