9c. Quasilinear Utility and Demand

In this video, I introduce quasilinear utility. I show how to compute marginal rate of substitution for quasilinear utility, as well as the result that the indifference curves are parallel. I also outline how to solve for the demand curves when utility is quasilinear.

I finish the video with an example of quasilinear utility, where utility has the form u(x,y) = y + log(x). The example is simple to compute and this simplicity demonstrates why we see quasilinear utility show up so frequently.

For a list of videos and links to these videos (organized by topic), check out the Intromediate Microeconomics video web page:

http://blog.thisyoungeconomist.com/p/learn-microeconomics.html

This video uses calculus and is part of my effort to supplement my non-calculus text "Intromediate Microeconomics" with calculus-based examples and techniques. This book is available for purchase ($20 for an electronic copy) at my storefront:

http://www.lulu.com/cookson

Category:

Education

Tags:

• quasilinear utility
• microeconomics with calculus
• marginal rate of substitution
• intermediate microeconomics
• microeconomics tutorials
• tutorials
• lectures economic

[keshiz99]

you are GOD.

[olliegee1]

This video jumps around too much. I hope the rest aren't like this

[fcuartas2]

sick vid. helped a lot

[DerFrischi]

i love you, dude!

[tryschool]

very good, keep it up! :)

[weeloo1234]

Thank you! Easy and well explained approach! If you could do the same for game theory and the Robison-Crusoe model that would be Awesome!

Keep up the great work!

[luwei1120]

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[SpockisGreat]

This is awesome thank you!