Income Elasticity of Demand

[Fjatstrom]

Big fan of your work here to all of us Econ students. Just one question:Income Elasticity of Demand does not change if it is an change of income due to inflation to keep up the consuming, correct? And even if your income goes up(no inflation) but you feel that you don't need to spend all your money on steaks, say your fine with the quantity of steaks you eat before the change of income, won't that affect the elasticity of demand?Doesn't that pretty much say it's not a secure measurement of YED?

[mishterpreshident]

Brilliant instruction, sir! My microeconomics professor uses your videos pretty heavily, and I have to say I've probably come away with more "ah hah" moments thanks to you than I have from my own professor.

[kaylasok]

I am a freshman in college in an intro to economics class and your videos are so so so helpful!! thank you so much!

[mattdyton]

aha thanks so much

[TheTrueBeliever92]

so are inferior goods like substitues?

[CIsabelle0594]

I have shared your videos with, basically my whole grade! I bet all of us will pass our IB exams in 2013!!! Thanks for the efforts! -

[yaba3050]

I love how you say thanks at the end, instead or you're welcome! You are an amazing teacher!

[yugioh7847]

last minute revision anyone

[xMATHIEx]

why do you use (y/q) x (change q) / (change y) instead of (%change qd) / (%change income)

[TheMarkys17]

Thank you but what about Luxury/ostentatious goods? are they positive and income inelastic?

[MusicaAmazigh]

thanks a lot for the video it really helped!

[shameer304]

thanks

[kentsin111]

this is so helpful,...thx

[CastilloAlmita]

Thanks so much! :)

[flossct]

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[dieyouFRED]

I like steak too.

[gkorakali]

thank very much for this video. 

[SuperRafa2020]

Hi. Today i`m having my microeconomics exam and your explanation is GREAT!

Thanks!

[Lovem388]

You ar greatt!!! Thank youu...can you do some other vidios on Unit 1 PLEASEEE... ;)) THANKK YOUU

[1nwo1]

good job. Thanks

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Thank you Sir. I pleastantly enjoyed that ;)

[cbopshoowop]

Why have you done in 6 mins what my Professor couldn't do in 20 hours?

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these videos are very helpful for me , thanks

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9 peoples don't go to school and have an s***t brain , most of them skipped this video and opened the XXX PORNO .......bitch asses ...oh by the way THANKSSSSSSSSS SO MUCHHHHHHH UR THE BEST

[Tannzyllah]

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[DelGee1]

dude this is so helpful!!!! THANK YOU!!!

[PovilasRut]

it's funny how these videos are shot in Greece...

[perd62]

gr8 videos...helping me learn so much faster

[MCSantana27]

Thank you very much. I will now be ready for my midterm exam this morning. Showing appreciation from Montreal.

[kiingcoke]

Thank you very much, your videos are always most informative and helpful. Please keep up the great work.

[feelthemelody1]

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[phuc227]

I'm a student in Vietnam. I'm studying Business Aministration course. Microeconomics is a subject that I must get a pass in. It's really helpful. I like your videos. Thank you so much. Keep it going on.....

[afgty34]

Thanks for a great lecture

[Gameriks]

You are a BEAST

[GetLikeMike23]

You've really made the whole idea of elasticities so much clearer to me. I thank you greatly for doing these. I've watched almost all your videos!

[akash100795]

i hv a doubt, what happens if YED = 1? Would it also be considered to be unitary elastic?

[bluprotec]

thank you so much!! i'll be using this video of yours for my presentation on the topic.. :)

[kong11232]

Excuse me. Say if income fell and the demand for that good also fell then it would be a negative divide by a negative so wouldn't that be a positive sign showing its a normal good?

[akash100795]

@kong11232 yeah, that is true. the income and demand move in the same direction so it is a normal good. in ur eg, the demand and income both move downwards, meaning when ur income falls ur quantity demanded also falls, making it a normal good

[0625153544]

thank you so much!

[awsmits]

Thanks very much for all your videos, it's much better than reading a book. So this is helping me with learning all Mankiw says!

[abdullahfbi911]

and i like steak also hhhhh

[abdullahfbi911]

thank you so much 

[koraishi]

You sir, are a genius.



[minnhwei]

THANK YOU SO MUCH, YOU SAVED MY LIFE.

[bluebirdcj74]

I like steak.

[cuntsauce69]

Amazing helping me study for finals

[iiiiiiiii55555555555]

A-MAZING

[SimmaBola]

Just spent a year at school not understanding this and you just taught me in 7 minutes. Brilliant

[lilcaporista]

You should teach other teachers how to teach lol

[atwodollarnote]

i kept nodding my head all the way through cause i was getting the concepts!

[caadilyare18]

Thanks sir it's helpful but i wanna to get more examples how to find or how to calculate relevant elasticities ?..

thanks please reply soon with in10 hours i'll have an exam on this course..

[smarterthanyou7]

great video! thanks a ton! u elucidated the income elasticity of demand very well!

[dickween]

shouldn't Y = 100 + 120

and Q = 40 + 60

why do you only choose Y as 100 and Q as 40?

[Tehui1974]

Question: Income-elasticity for a good is 0.6, and there was a 5% increase in real income, so there is a 3% increase for the demand of the good. With all variables held constant, does this mean that the demand curve shifts 3% to the right?

[NosajDubscout]

Would be great if you could do some examples for price-income-crossprice %changes.. I have a professor that is mostly using that type and its left me slightly confused with how hes reaching some conclusions

[uniquecouture]

Helping alot! Big exam tomorrow! THANK U!!!!!!!

[cinnamon730]

Sir i need your help on this. The income elasticity of demand for milk which is a inferior good ;is negative... what would be the implication of this for milk producers?

[joIVOjo]

Dit filmpje moest toch?

[teddybeckham77]

awesome! thanks!

[alexmiom]

thanks dude, im watching all your micro and macro videos cause i have mocks next weeks, thanks very much :)

[yesyes673]

Thanks a lot for the help!, i just have 1 question: Why do you use a `Y` as symbol for `Income` and not an `I` ?

[pajholden]

@yesyes673 hello - by convention, I is used for Investment.

[yesyes673]

@pajholden Thanks again Sir!, Top Man!

[alperahmet1212]

@yesyes673 he even says... I is used for Investment :)

[jadedconformist]

@yesyes673 He also answers that question in the video

[MoonBHAA]

@yesyes673 "Y" not...sorry, had to do it :)

[SingerTiana]

@yesyes673 The formula is for YED. so the Y represents 'Y'ED

[xMATHIEx]

@SingerTiana that doesnt answer the question

[kayss94]

@yesyes673  'I' is used for investment

[Shukhrat51008]

Yes I like the video, i found it very useful, Thank you, I would like you to upload more videos coz you can explain very precisely...

[arsenalmanz]

THIS EQUATION IS SO MUCH SIMPLE THANK YOU

[hanand25]

thnx

[hanand25]

thnx



[MagyarNC115]

thank you thank you thank you. köszönöm (from BME, Hungary)

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[freshiebee5]

Way better than my useless economics teacher!

Thank you :)

[100992th]

@freshiebee5 My teracher is crap, in our class of 25, me and 18 others are resitting this unit :S

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[ashuascent]

Thanks a lot!

[RIPHG]

the more clearness a "normal" teacher would like to achieve, the more time he would need.

but since you reach more clearness in less time, that make you an "inferior" or special teacher :)

you have helped so many people, including me... god bless you! :)

keep going, well done :)

[QuipyGirbo]

@RIPHG

...inferior has negative connotation.

maybe if i add a : )

after everything i say : )

i will be able to understand : | ?

[pajholden]

@QuipyGirbo ; )

[RIPHG]

@QuipyGirbo

ups :(

i am so ashamed, i ment to pay him a compliment, now look what i did

i am very sorry Prof. Van Holden. I have great respect to you and to what you do. I just ment to say, that you are explaining very well, though very easy and short. listining to you is like magic. i hope i didnt offend you <:(

@QuipyGirbo: thx that u told me

[pajholden]

@RIPHG I knew it was a compliment and I am very flattered and really pleased that my vids have helped you understand and enjoy Economics. Best wishes from Athens, Phil Holden

[AshSaini7]

LIKE!

[powale21]

wat happens when d income decreases and the demand for a product increases? or decreases..? what are those goods called? can come under normal goods or inferior goods? help

[thumperliciouz]

THE BEST EXPLANATION.... THANK YOU!

[yoyo6565]

Thank you very much, very useful information

[mini1598]

can you tutor me on youtube!!

[pajholden]

@mini1598 on skype - e-mail me.

[missbeautiful8]

@pajholden do u charge?

[pajholden]

@missbeautiful8 yes! That's my job. It's how I clothe and feed my family.....:)

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[smalhot37]

Prof, I really like d way u explain.. /really helpful.. Thanks

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I listened to my lecturer,read a lot of books but still failed to understand...

U made it so simple for me understand..

thank you

[TitaniumByFire]

Are you saying 2.5 because 40 goes into 100 2.5 times, or that 20 goes into 40 2 times, and 20 goes into 100 5 times ?

[diana90crazytown]

@TitaniumByFire its the same thing either way...he chose 40x2.5 = 100 since the 20/20 gets cancelled out...

100/40 X 20/20 = 2.5

100/40 X 20/20 = 5/2 = 2.5

its called cross cancelling--numerators with denominators

[TitaniumByFire]

@diana90crazytown Thanks, I apreciate the input :)

[TitaniumByFire]

What does0.5 relate to ?

[knightblue13]

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[cherry91819]

you explained the topic clearly in 7 mins and in contrast my teacher spent 2 hours to explain!! thank you so mucchhhhh :DDDDD

[prudhvibhargav]

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[RobCupperT]

more helpful than any lecture notes! thankyou, you deserve a steak!

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Great Job Mr Hill

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[bakjular]

Your lectures are perfect

[lonewarrior601]

Thank you, sir!! These videos really help me lock in and understand these tricky micro-ec concepts! Excellent work every time!

Btw, I love steak too :)

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videos like these are incredibly helpful when the schools textbooks comes across as a bit confusing

[ruffian1986]

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[SezSays]

These are really great videos. I wish I would have started watching them months ago.

But why do I get different answers with each equation? The first one is -0.5, and the second one is -0.584795.

[SezSays]

And the first one is either 2.5 or 2.2 depending on the equation.

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[Sproeikak]

OMG, my main language isn't English, and I actually suck at it. But I get this MUCH more than when my professor explains it!

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Pls can you do a lecture "Using econimic theory explain why contemporary art price are so high"

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It's the best explanation ever!!!!

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107% on my economics test. thanks for the help.

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again. thank you. jesus i swear im wasting tuition fees on worthless teachers! they have no idea how to teach. i guess thats what you get when the economy is bad. schools hiring students to teach students!

[Stainluss]

just helped me with homework have been looking for help all day,

much appreciated :)

[finchdrp]

Thanks a ton... great examples quoted

[llDeathll]

very good teacher thanks a bunch I now understand this

[redgibbon]

what happens if income elasticty = 1 does that mean its unitary income elasticty?

[jdizzle921]

For another video could you possibly show us how to graph/draw the supply & demand curves aftter figuring out the elasticity of a good?

Also, thanks for the video. You teach the idea simpler than my university professor. =)

[timon117004]

thank u, very helpful

[Akavall]

Very good videos. Thanks for doing that.

[tranceaddictandy]

much appreciated mate - hope u achieve your goal of becoming a teacher..

[ViolaIhala]

Thank you Phil. I've been pre-reading M Parkin before my MBA studies to get general knowledge in Economics ( I did my bachelor degree in foreign country and very long time ago), and have found you talented in delivering information in short, simple and understandable way. Please continue educate people worldwide via YouTube and idea of producing a DVD on the subject will enlarge your image. Most important, it's great help. I'll go through all your video lessons. All the best, Violetta

[kozasonia]

Thank you!!

[andreasalayzae]

great video thanks a lot

[mariamty]

Thank you very helpful smooth quick and beneficial

[henriqol]

I think you made a mistake towards the end of the video. If the Income Elasticity of Demand for bus tickets is -.5, then, if you have a 10% rise in income, your % change in quantity is -5%, and not -20%, as you said.

[kozasonia]

if you divide 10 (10% rise in income) by 50 (-0.5 is = 50% change ), we have: 10/-50 = -0.2 = 20% decrease. Plausible?