Income and Substitution Effects

[helmfer]

This is all confusing and distracting it helps nothing for dummies and for the iniciated, it is useless.

[axelle32]

Awesome! Lose the 50's music maybe?

[wilki249]

I liked your video; the production level was awesome! those animated diagrams are very informative in a concise manner! Good Job!

[Apolis92]

I think it is wrong. The substitution effect is the movement along the original indifference curve! It does not shift the budget line, it only changes its slope!

[cqlater]

The content is good but the music is so distracting I can't stand to watch it any longer; abandoned at 18 sec.

[LeKden8]

I don't get how you went from point A to point Z. How did you get point Z?

[mbosco1000]

Why is the compensated budget pivoted around point A?

im confused.

[bobbouwer6]

THIS IS WRONG!!! Substituion effect is animated in the wrong way. one should shift the budget constraint after the price change toward the old maximizing indifference curve, until they're tangent. In this movies the budget constraint is shift until it intersects with the maximizing bundle of goods in the initiial situation. That how ever, does NOT depict the substitution effect!!

[goodkaul]

Yeah this was really done nicely, thank you! Good choice in music too.

[tahateekhan]

great work... awesome video THANKS

[AirCraft091]

How to define the optimum?

[brad757575]

Thanks for the video, very helpful!

[CowieTyler]

What is the source for the video? They say this is the second video where is the first?

[MamasBoys129]

That music is super distracting, you should remove it.

[geyserkill]

You just saved me from failing tomorrow's paper. Thank you!!

[ikea246]

why is Z not on the same indifference curve as A? looks like you made a mistake according to Pindyck and Rubinfeld

[humanzeeben]

@ikea246 The model you are describing is the Hicks model of the substitution effect where the budget line is rolled around the original indifference curve. The model I describe is the Slutsky model where the budget line is pivoted around the original consumption bundle. Check Hicksian demand on wikipedia if you need more info.  Thanks for watching!

[NYCubaLibre]

Awesome! Thank you!! I love the Jimmy example! Very helpful and makes it easier to remember. "We give Jimmy back his dollar for the income effect." You rock!

[seanch84]

I like the music.

[kyyle89]

very helpful! thanks.

[goodluckpeace44]

thank you very much

bye

good luck

[Hallewerest]

great lesson... and great music too=)

[ahad222]

i like the music; i say keep it! this can get quite boring... how about som beethoven though, its said that structure in which the music is played helps focus the areas of the brain that are used when dealin with number and number logic!

Thanks for great vid, been a big help!

[goodluckpeace44]

that is true, I listen to classical muisic when thinking

[lwara]

What the music is for$ Is that educational too? Please do us a favor and get rid of it.

[humanzeeben]

wow. Didn't know the 20's music would generate this much animosity.  I'll tone it down.

[craymiranda]

@humanzeeben i liked the music and i learned a lot. thanks!

[cw505]

@humanzeeben

i like the music.

[ranagan9]

@humanzeeben the music is really distracting when your trying to understand what is be said. other wise the video is very helpful and thank you for taking the time to make it and make it available for all to see :)

[itskovu]

@humanzeeben I liked it, keep it

[Rafaelchan]

no music will be better!!