indifference curves

[rachgunz]

This lesson was so awesome! Very clear. :-) Thank you!

[Mscottbreezy]

Paj Holden, aka the archbishop of banterbury

[dorjaxxx]

think u so much really help me

[ismawan1980]

Pardon me, just a humble opinion. The examples are too far fetched. "food" and "car" is very different product category, in the language of marketing. Would not it be better if we use examples such as "burger" and "coke"? People can relate much more easier with that.

[Mscottbreezy]

@ismawan1980 dont be so pedantic.

[okam101]

You just screwed it all up. What about perfect complements or substitute. when the indifference is unconventional.

[hermancheong]

@okam101 Hi Okam, you are right. Indifference curves could be linear if perfect subsitutes are involved. For that, the marginal rate of subsitution is constant throughout. Optimal utility could be achieved by solving for corner solution.

[mackbox123]

@okam101 I believe such two things don't exist in reality. Perfect substitutes mean two goods that are identical. Perfect complements mean two parts of the same good. And thus unconventional indifference curve does not exist.

[pepteamsergi09]

Simply.. WOW!!

[axelle32]

Brilliant.

[Tacoma3243]

You are a saint

[SliMatic012]

Thank you..i understand this.. it wouldve been better if u had given a particular price though. i wanted to see how they would equal up on the budget line

[sgwhytyduoefhadshjdf]

Hey i have an economics quizz can u help?

[MichaelYog]

"Indifference curves are convex to the origin". WRONG.

[sambayouth1]

Great job, thanks alot sir, you explained it so clearly and gave reasoning to everything you said, great job :)

[beachdawg14]

I liked your video a lot but I question your statement of indifference curves being non-linear. A perfect substitute of say nickels and dimes would elicit a linear indifference curve.

[rrlu]

awesome video! Great help!

Thanks a lot!

[92Yusif]

Than you for this !

[angelicasald10]

Teachers are amazing; thank you so much for taking the time to do this. As you can see, you have helped many people!

[srslayerz]

MARRY ME

[bugalooshrimp92]

Thank you! my lecturer went through this immensely fast and assumed we all understood it just like that, thank you again!

[iliadisi1]

Thumbs up, if you know economy from pajholden!

[iliadisi1]

I have no idea how you explane everything in 10 minutes and my lecturer needs hours to explain. plus, I understand everything here and nothing in the university!

thanx a lot!

[cartmanfan0316]

pajholden, you're amazing. Your videos help me out so much with my horrible economic professors. Keep up the good work, Good Sir.

[trunx16]

Oh. My. Thank you!!!!!!

[abdullah7200]

It Would be glade of you if you could explain (Revealed Preference Theory)



[deepakgaba14]

yeah thanks a lot pajholden

[jasont6179]

thank you so much!

[InmicaJFord]

Could you please elaborate on Consumer Equilibrium?

Id really like that.

I've watched all your videos on Macro Economics as well.

Circular Flow Of Income was crystal clear.

[usman2hype92]

i swear to god you should run for like teacher of the year award or something

[Missjennyyyyyyy]

it's so clear~great!

[Missjennyyyyyyy]

it's so clear~great!

[soemali]

i'll be having my paper tomorrow and this is such a great help. thank you so much!

[alitedd]

GReat lecture

[Suburbiton]

why cant lecturers in my uni explain it so simply and completely? ffs

[lSeKToRl]

4 professors I had couldn't have explained it better

[mrsnehdeepchanda]

this is simply superb..i cant belive i am studying for my Grad exams of youtube....

[ulgenmm]

great thanks



[babymamadrama101]

great video! thank you!

[kobayashi123]

chalk mark on his suit

[guthmiller575]

You say that indifference curves can not be linear? could you explain to me the same of an indifference curve between to perfect substitutes?

[Suburbiton]

@guthmiller575 yes perfect substitutes would have a linear indiff curve, eg if it was green pencils and red pencils and you dont care which you have, there would be no diminishing utility relative to the other colour at any level of consumption

[D2EBONY305]

Thanks I'm taking Micro online and you've been a great relief.......

[TheFinishLine17]

Very helpful, particularly your explanation of why indifference curves are convex at 02:12. Many thanks!

[TheFinishLine17]

Very helpful, particularly your explanation of why indifference curves are convex at 01:53. Many thanks!

[elpypeta]

Thank you Profe, it is very clear now. You should be the next Universal Professor that will go on a mission to meat out off space aliens. For the other professors around, no need to try guys, the spot is already taken.

[GG8]

Excellent video, thank you very much. You seem to have an ease to explain concepts logically and clearly which many, many other teachers don't have.

[buran225]

So, Mr. Holden, you could say that an indifference curve is like a ppf for consumption, yes?

[LUCHO8490485]

he explains quite well but he is incorrect saying that the preferences can not be a straight line, in cases when goods are perfect substitutes for example blue pencils and red pencils makes no differences. Also there are other shapes like L shaped. If we want to be more critic, you can not buy fractions of cars because this variable is discrete, not continuous, in that case his example is not ok.

[maritunby]

i have watched a few videos on indifference curves and yours was the one that made it all a bit clearer. Thank you!

[MrKingJumbo]

Thanks a lot. That really helped me but I have one question:

Why isn't the path of the way the spending changes linear? You give the example of it bending towards the "cars" and I don't get that.

[pajholden]

@MrKingJumbo thanks for getting in touch- as the consumer has more to spend (and their budget line shifts outwards) they choose to use a greater proportion of their extra income on cars. Cars mus have greater income elasticity of demand in my example...

pajholden 1 sec ago

[Tracywithafacey]

You are a god send. You helped me loads through A Level Economics and now you are helping me through my degree. Thanks and continue making great videos.

[njeri101]

I'm from Barbados and I have an exam on monday and this really helped..........thank you~~~

[IrnBruFiend]

Great. Just started studying this. This video has really complemented the coursework nicely. Thanks a lot. *Subscribed*

[flinagin]

Awesome explanation, thank you.

[mlmiles1]

Perhaps a silly question -- isn't the PPC conceptually similar to the budget line? If so, why isn't the optimal point on the budget line the midpoint as it is on the PPC?

[adanzakyle]

mr. pajholden.thank you sir..:-)

[MrPlutokoen]

Thanks for this upload! Very nice, now i understand this principle

[Jurgenalzen]

True. Books are OLD school now...... Prof. u are amazin. this was just soooo sooo difficult to understand in the books. But thanx 2 u its ver very simple

[ALisztomaniac]

Thank you so much. I really do hope your an economics teacher, cause you are an amazing teacher.

[tahirwaqar]

easy to undestand.thax

[kayis2010]

waiting for ur response dr. cheers

[bentbush]

don't have words to express my gratitude for the prof.Great job sir. carry on with the noble job. Everything crystal clear and understood.

[5552340]

Thx a lot philip :D

Guess what, u r highly recommended by my seminar tutor*

u r awesome!

[haashi9]

Phil,

You make economics sound so easy and understandable!! The moment I hear about a new topic in class, I start hoping you have a youtube video uploaded out thr!!

Thx a ton!!

:)

[sex911911]

SO GOOD...THANK YOU

[zanfankid]

this is great stuff, but can someone explain how this is applied to the real world considering that no one spends all of their money on just food and/or cars (or water and clothes or watever).

How do you add more goods into there?

[fathumptydumpty]

I understood that very clearly thanks but in regards to the marginal rate of substitution what happens if it is less than PX/PY.

Where the equation would be MRSXY < PX/PY. Where x and y are two goods

and P is price.

How would you draw that on the indifference curve? And would you need to adjust it for the consumer to maximize satisfaction?

I'm having trouble on my assignment and would appreciate any help. Thanks

[shukshuk]

*applause*

[MexicanBillBacker]

I wish you were my teacher :(

[xp80000]

awesome...

[AlejandroMdz]

when you get an increase of the budget, this cuts the indifference curves in a higher combinations of food and cars,,, but the utility decreases the more you buy any of those items, How does it affect the indifference curves?

[nutsbutdum]

This guy rocks!!

[sudanshsingh]

thnx for this tutorial

[nicky3521]

Great Video...very helpful!

[cornman1220]

wow you just saved a student on his midterm exam. thank you very much! you have been subscribed

[davedroid]

this guy does a better job at explaining this concept than the elitist twats at the so called "one of the best universities in the world i go to".

well done,excellent clear and concise explanation.

[IAmBombSon]

brilliant!

[goodluckpeace44]

a better example would be tea and coffeee

[goodluckpeace44]

what an example, food and cars. with absolutely no food, a man is satisfied with million cars

[laughingjal]

sir, can u pls explain consumer equilibrium through ultility approach as well? i just dont get the concept of marginal utility of money.....thanks

[Aciletnobi]

well thank you.

[maddi62]

Excellent videos. Well done

[Sunnyman2012]

The Law of Marginal Rate of Substitution applies very well the concept of Scarcity. What is limited costs more!! If I have four cars and you break the window of one of my cars, I won't be as pissed as if I had only one car! You could play me $100 for the window of the broken car when I have four cars, but if I have only one car, it would seem to cost more, say, $450! Bateu bwe!

[maddi62]

If i were you I'd use somebody else's examples in the exam. Preferably out of a text book :)

[rhoque2]

thank yiu

[goodluckpeace44]

yeah than you for this I learned lot from this

[LUCHO8490485]

not really because there are different preferences like perfect substitutes for example, or perfect complements

[KanaPolak]

The chalk on the back of your suit shows your dedication. I'm not a formal student, I am a recreational learner. For many viewers you are a compliment to their professor and a preparation for the upcoming exam; To me (and some others) you are concisely organized and wonderfully represented information [great sound, great video, great lecture plan]) on an exciting topic... yes, economics can be fun.

Thank you for the time investment, you are making the world a smarter place.

[hotchoclateguy]

thanks a lottttttttt

[Sunman2014]

The budget line also shifts outward due to decreasing price of the good, not only when the income rises. Well, if price falls, Real Income rises!

[mesumatra]

great job thank you

[RaviPrem898989]

very well done. finally, an economist that can teach.

[stand2reason]

very good explanation!

[RandallDandall]

winderful!

[flyingshoelace818]

thank you. again, absolutely amazing.

[loverofbeats]

even though you lecture faster than my professor i can still get a better understanding from your lectures than his.

God bless! God bless!

:D

[thugnbone123]

Awesome, I was telling my mom yesterday reading books were a thing of the past, thanks to Good people like this...

[pajholden]

Say hello to your Mum - never stop reading books. Phil.

[todaslasmujeres]

@pajholden Phil always nails it!! :D

[siryousaf]

thank you sir... your teaching method is excellent ....

[hereno1]

wow, it's like making a three-page discussion in a book into 10 minutes but with the same content. thanks for making our lives easier.

[Rukeh89]

Truly Excellent expanlanation...true youtube hero

[wefh2]

Great explanation, great teacher!!

[MATAKUKUYOU]

Awesome!!!

[MATAKUKUYOU]

amazing

[VolcanicDrum]

Thank you so much for this video. You are really really good.

[wuaarg]

Some more props van Amsterdam. Have an exam next week on micro economics. This vids really are really helping me to comprehend issues better.

[LexEnglesio]

Incredible! Thanks & appreciation from Amsterdam!

[petermccann2004]

Excellent, very well explained...

[2009blink182]

Just wanted to correct something on the video.

Indifference curves are linear when you have perfect substitutes.

[huhbuzz]

it's so funny when you turn round and get chalk on your jacket!!

you are a really good teacher though. thanks for putting this on youtube!

[Chaalie]

You should explain the price leadership model/dominant firm. It's extremely confusing. Keep up the helpful videos!

[oizxmnqw]

sir! u Rox... keep it up.. u'v helpd me alot..

[terpshoops27]

Love this guy, saved me on my last mid term.

[taintedmirage]

I'm having my exams in 12 hours. thanks a lot for your help!!!!!

[IntegratedDerivative]

these videos are very helpful thanks

[sepulturak]

ah man thanks for the video Im talking a Price theory class and im not understanding anything in class........these videos are helping alot though!!!

[cathy2708]

honestly paj, im really trying to figure out how to 'promote' your videos around economic students,

they are so helpful, too bad i already failed my micro class, XD..but macro is lying right ahead

[jackyck]

how to the graph of holding real income constant?,,,,that is Slusky and Hick 's proposition which giffen good will exit in the diagram..

[sunilamg]

great video, paj

[rulllar]

hey, thanks.

Another good and interesting video! I'm enjoying these very much.

[brian12934]

Hello Paj!!! Welcome back!!!!!!! Thank you so much for the video.

Glad to see you again.