Substitution Effect and Income Effect |Meaning | Diagram | Simple Numerical Example | 21 |

This video talks about Substitution Effect and Income Effect.
1. Diagrammatic representation of Substitution and Income effects
2. Numerical Example showing the calculation of Substitution effect and Income effect
This is useful for those who are preparing
1) Intermediate Microeconomics Course in their semesters
2) UGC Net Economics
3) Basics of MA Economics Entrance Exam (DSE/ISI/JNU/IGIDR/MSE)
4) Indian Economic Services
For any course related query please call 9999886629
or visit nishantmehra.com for IAS Economics Optional/ Indian Economic Services/ UGC Net Economics
or visit Ecopoint.in for MA Economics Entrance Coaching

[@richamitra2246]

Thanks a ton Sir...you have explained the price effect in a beautiful way.

[@rajendrasahoo8485]

What will be in case of rise in price ?

[@dreamerlearner6610]

I think for income effect we will go back to unchanged income lvl to see it's effect in changed demand due to price chang(so for income effect :m' to back to m and price p to p') @27mint in ur vedio last explanation
Plz correct me if m wrong

[@iamsaranya8864]

Sir how to calculate the slutsky IE & SE when utility function , income , price of x,y and how much price of x falls is given ?

[@ADITYASHARMA-ez2vt]

Sir, for the fictitious budget line, why haven't you changed the P² price as there is a change in the graph. So, it should be changed from P² to P²', like P¹ to P¹'

[@nishantmehraecopoint]

We are dealing with relative prices and not the absolute ones. As far as I know, only p1 is getting changed here, and because of that p1/p2 is changing

[@ADITYASHARMA-ez2vt]

@@nishantmehraecopoint ok sir, thank you so much for replying.Its clear now.
😊😊

[@SumanDevi-be3wv]

👏

[@Alpha-ko2vf]

It is very good but your writing is not rideable

[@manishpradhan9372]

Sir please use hindi also