The logical contradictions have been exposed in Alex Gheg's video. Just ask 2 simple questions. What is quality? What is convenience? One equation can explain it all. youtube.com/watch?v=2c4mvGekYZY
I can understand when theoretical concepts are used to predict output in machines, products etc. But with what confidence can we use theory to predict human behaviour? How good are these theories in the real world when dealing with real human beings as human action is determined by innumerable factors?
For example, diminishing marginal returns works with love too. If you spend too much time with a loved one you appreciate them less and it turns out that absence does make the heart grow fonder.
What i don't understand is why should i reduce income when the price was down to put the agent on the previous indifference curve? because their level of utility grew due to increase in real income through decrease in price, and the shift od the curve seems logical...
@besionishe that's only hypothetical.. the least point is the one you create first.. and that one is on a higher indifference curve.. to force them back is only HYPOTHETICAL, because you want it to devide into 2 steps.. step 1.. you stay on your indiffernce curve and you want to see how a price change drops on the rate of the different goods... in step 2 you show describe the effect that you can buy more/less because the price is changing.. in this case it would be a superior good ;)
I can't help it, I don'r understand it( i'm not stupid or anything, but that just does not make sense in my mind, i have watched a lot of videos and read a lot. i just don't get it :( what is frustrating, is that i have never known myself as stupid.
And it all started with trying to understand giffen paradox...
i just watched this video as a last-resort attempt to fully understanding the different effects of the income and substitution effects on consumption, as represented graphically. it is 6:37 AM. my test is at 9:35 AM. thank you.
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The logical contradictions have been exposed in Alex Gheg's video. Just ask 2 simple questions. What is quality? What is convenience? One equation can explain it all. youtube.com/watch?v=2c4mvGekYZY
IlirMr 3 weeks ago
I can understand when theoretical concepts are used to predict output in machines, products etc. But with what confidence can we use theory to predict human behaviour? How good are these theories in the real world when dealing with real human beings as human action is determined by innumerable factors?
twelvekeys 1 month ago in playlist Managerial Economics
@twelvekeys
For example, diminishing marginal returns works with love too. If you spend too much time with a loved one you appreciate them less and it turns out that absence does make the heart grow fonder.
economicsfun 1 month ago
@twelvekeys One more thing... it is one of my goals to create animations and deal with a lot of the "economics of life issues."
economicsfun 1 month ago
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twelvekeys 1 month ago in playlist Managerial Economics
i love it ...
very very very nice video ....thnx a lot for uploading
MyCrazy107 2 months ago
How do we know that the indifference curve will meet the budget constraint at 14y and 3x ?
MoezZist 2 months ago
Great job. And no distracting music. Thanks.
cqlater 4 months ago
thank you so much. it helps me to understand before starting on my homework assignment . (:
Juliatcw 6 months ago
What i don't understand is why should i reduce income when the price was down to put the agent on the previous indifference curve? because their level of utility grew due to increase in real income through decrease in price, and the shift od the curve seems logical...
besionishe 1 year ago
@besionishe that's only hypothetical.. the least point is the one you create first.. and that one is on a higher indifference curve.. to force them back is only HYPOTHETICAL, because you want it to devide into 2 steps.. step 1.. you stay on your indiffernce curve and you want to see how a price change drops on the rate of the different goods... in step 2 you show describe the effect that you can buy more/less because the price is changing.. in this case it would be a superior good ;)
wusnoOk1991 1 year ago
Comment removed
besionishe 1 year ago
I can't help it, I don'r understand it( i'm not stupid or anything, but that just does not make sense in my mind, i have watched a lot of videos and read a lot. i just don't get it :( what is frustrating, is that i have never known myself as stupid.
And it all started with trying to understand giffen paradox...
besionishe 1 year ago
@besionishe i also!
grisarobe 3 months ago
Comment removed
haroldthesho 1 year ago
i just watched this video as a last-resort attempt to fully understanding the different effects of the income and substitution effects on consumption, as represented graphically. it is 6:37 AM. my test is at 9:35 AM. thank you.
ballsackpioneer 2 years ago
does the indif curve have to all be the same slope?
kkuwa13 2 years ago
@kkuwa13 yes.. indifference curves are different curves of your utilityfunction with different constants
wusnoOk1991 1 year ago
@kkuwa13 , yes. It also should always be parallel , not intersect, and not sloping upwards.(excluding special cases).
Nightwalker1118 4 months ago
You explain it so much better than my prof!
Thanks
Ch28Kid 2 years ago