Episode 19 - Indifference Curve Analysis

Using Indifference Curve Analysis to determine a consumer's buying choice given income, prices, and preferences. NOTE: The scenario results that I go through at the end of the video are ENTIRELY dependent on the shape of the preferences. You may find that you get slightly different results, depending on how you draw your indifference curves.

Category:

Education

Tags:

• economics
• indifference
• curves
• micro
• consumer
• theory
• choices
• budget
• graphs

[Me445ify]

hey mjmfoodie..

i love your videos.. they have really helped me.. do u have any video on law of equi-marginal utility also known as law of maximum satisfaction..??? please reply me soon as i have test coming day after tomorrow.. please..

[mjmfoodie]

@Me445ify Unfortunately, no -- that's a little beyond the principles level. But the basics of the concept (marginal utility per dollar spent on the last unit consumed is equal across all goods) are in Episode 18.

[mbosco1000]

is there any video about giffen goods, and the income and substitution effect on them?

[mjmfoodie]

@mbosco1000 I speak about Giffen goods (also known as "inferior goods," which is what I called them in that episode) in the Demand vs. Quantity demanded video, I think...? Because this series is more at the introductory than the intermediate level, I don't get into specifics n income/substitution effects in the indifference curve model.

[Dannyisgreatful]

@mjmfoodie i thought a giffen good was a good whose demand increases as the price increases...

[mjmfoodie]

@Dannyisgreatful Nooooo.... it's an income thing, rather than a price thing...

[hussein688]

Chuck Norris can choose point E.

[Me445ify]

@mjmfoodie oh okay.... i already gave the test on my concepts hope it turns out good.. but thanks!! your videos are amazing..

[enrique1morelli]

Reading from book was soooo difficult...thanks 4 clear explantion

[AugustNocturne]

Can you explain income/substitution effects as components of the price effect?

And this is such a awsome video...fantastic simplicty...why do I always find it more complicated in my college text book?

[thelocked16]

thank you very much my teacher :) <3 from pakistan

[alarabiMajed]

thank u so much for this episode and the others, they benefit me a lot. god bless you.