Indifference curves and marginal rate of substitution | Microeconomics | Khan Academy
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- Опубликовано: 26 авг 2024
- We can graph how we value tradeoffs between two goods
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I cannot wait to be rich and donate money to this channel !!!
Imaginary economics isn't going to make you rich lol.
@@bunchberry_ so true. The concept of 'utility' is completely rubbish. Ideology has infected economics unfortunately...
@@landcruiserfan4206 I’m currently learning this right now - I had a feeling it was useless. What aspects of economics are worthwhile? Macro economics?
The only thing you'll be rich of are tears because you realized that life ain't handing out free money
💀
A big thank to you SAL! What my teacher couldn't teach in 2 hrs, u taught us in 10 minutes:)
It is different.
Are you sure that Sal didn´t prime your learning and Khan, when explaining in a slightly different way made you understand?
This guy deserves a medal
How's it possible that the video is one year old and your comment is 6...
@@mamtapandey9504 Video is over 6 years old. Khan academy just changes the title to make the date more recent. So more people can find it
Waiting for you dear🤣
It's been 7 years, can't remember what an indifference curve is 😂 can't say I've ever used it
What did Khan study at college?
I’m taking this for a Master’s degree and this video is better than anything I’ve received in three weeks.
These videos are much better than anything I have been taught at University.
Crystal clear. Thank you Sal. I do not know how much knowledge you have in your mind.
What microphone are you using?
this channel is what keeps me from dropping my econ minor!!! watched this before class and understood everything!!! thanks!!!
comments from 6 years ago but video was “uploaded” today
Aliens have taken control over time travel!
RUclips is high again
*SYNTAX ERROR*
why is that? what happened??
@@springdayisnottoday371 Video is over 6 years old. Khan academy just changes the title to make the date more recent. So more people can find it
Thanks Google for Making RUclips
and Thanks Ambani for cheaper rate of Internet in India
and Thanks Khan Academy
Why sal hasn't won an nobel yet
How is it that this guy possesses knowledge in every field?
You’re a life savor. Thank you 😊
preferences are represented by the utility function U( represented by the utility function A. U(F,C)= 0.20F 2 C 2 s F, C With food on the horizontal axis and clothing on the vertical axis, identify on a graph the set of point s that give Abel the same level of utility as the bundle (10, 5). Do the same for Eden on a separate graph. B. C. On the same two graphs, identify the set of bundles that give Abel and Eden the same level of utility as the bundle (15, 8). Do you think Abel and E den have the same preferences or different preferences? Explain.....can u show me how to do such kind of questions??
Hello. I've been using your 'Microeconomics and Macroeconomics' playlist and found this video missing from it, after watching the Budget Line video. Would you add it to the playlist, please?
what is the link to the budget line video ?
Thanks! I've been referring to your videos for my engineering economics course. I've found them very useful.
To note as difference and it is just graphical to realise...
awesome crystal clear vid! thankss
Khan. You sir. Are a Legend. Seriously
Thank you for your effort and clear explanation.
so Ted Mosby's really teaching Econ huh
Excuse me, you're in the wrong class!
Thank you khan academy you are the best
great and simple explanation! Thanks.
Yoh the best Summary ever u the Best 🥺
Great❤
wish my mathematics fundamentals were this solid
The man teaching is too good at his teaching.. Plz. Keep it up 👍👍👍
YOU ARE A GIFT....!!!
the slope of the tangent line at a point on the indifference curve = marginal rate of substitution
Thankyou
You're the man
Tha'ts so well explained .Thank ynou
Are you taking into account the non-satiable assumption? because it seems like you arent, because if u would, I think that the two points on your indifference curve can't coexist on the same curve. thx for anybodies reply
this is awesome, thanks a lot for the help!!!!
Can you pls explain, Why should I consider the Indifference as a curve? Why cant i consider that as a straight line? Since the whole concept is assumed, why did not the maker of the curve, consider a straight line? What has made him to consider a curve?
Because we are relying on the concept of strict convexity, which is a more accurate representation of real-life when compared to the liner line
@@boonsuen1997 Thanks for your reply. So, do you mean that, all real life representations are curved? To be simple, why some graphs are curved and why some are lines in economics? What makes the difference between any curve and any line?
@@Masteridea101, For the most part, yes. It's a curve because your opportunity cost for one good to another will differ at different quantity, etc...
@@boonsuen1997 thanks a lot. Still I'm not clear. But anyway thanks a lot for your efforts to make me understand.
let me try to make this a little simpler
so marginal rate of substitution (MRS) basically means how much of B you're willing to sacrifice for gaining one more unit of A. say presently you're purchasing 1 unit of A and 10 units of B, since you're consuming very less of A as compared to B, you'd want more of A and you'd be willing to sacrifice a lot of B to gain 1 more unit of A
so let's say you sacrifice 5 units of B for 1 unit of A so your MRS will be 5/1=5
now you have 2 units of A and 5 of B
when you compare the two now you're consuming comparable amounts of both
if you could gain one more unit of A now you wouldn't be as willing to sacrifice a lot of B for that since the amount of B you have now is lesser than what you had before (ie 10) so you could say B becomes 'dearer' to you now that you have less of it.
so now to gain one more unit of A say you're willing to sacrifice only 2 units of B. now your MRS will be 2/1=2
so you see to consume more and more of A you'd be willing to sacrifice less and less of B and your MRS would keep on decreasing
since MRS represents the slope of your indifference curve you can say that the slope of the curve keeps on decreasing and that's why your plot cannot be a straight line it has to be a curve and since MRS ie the slope is constantly decreasing, it's a convex curve
I really hope I was able to explain this to you i tried to make this as easy as I could
bye:)
... this is really good...
Sal is top 5 human being on earth and it's not even a discussion
thank u THAnk U
Thank you
Logic within economics, we're is my tylenol?
Thank you good lecture.. keep up the good work
Thank you.☺
Very helpful
Great Video! Thank you
How are comments from 3/5 years ago but video was uploaded 6 months ago how did u do that
Time travel
He's a founding member of Illuminati!!! 🤫🤫
(*dont tell anyone*)
He edited the video which makes it more recent as at then.
So whenever you edit any already existing video the date will change to the new one
Great
great lesson!!!
you're amazing sirrrrrr
this was absolutely amazing
Thank you!
You really helped me!!
Could you please show on the graph, where is the middle point?
Great stuff
thanks!!
What is the difference between Marginal Rate of substitution and Marginal opportunity cost?
Fantastic explanation.
Love from Bangladesh
Thank you!!!
Thank you sir
thank you soooo much
Merci beaucop!
I have a question why curve is of convex shape?
Because the MRS diminishes due to the law of DMU
Anyone explain me how does the TU is equal . I don't understand. Help me if you know
is the slope in other words is marginal rate of substitution the same thing as opportuniy cost?
Is it possible to make a long story short. It is madness.
thanks for the contents, it would be nicer if you could stop repeating yourself
Daniel Mehta
Why is this unlisted -_-
So say you have a bunch of combinations of two goods right, and you have an arbitrary measurement of utility. Now what would happen if no two combinations produced the same utility? Would there be no indifference curve?
Indifference curves are assumed to be true. Doesn't matter if they're actually true or not. Microeconomics is very abstract.
But the marginal rate of substitution is that times -1
great explanation!
Didn't get it
I need to know how to find how many of both I can get with a budget and make a budget line. This video is all concept and no execution. 🤦🏽♀️
so how exactly do I draw the Indiffrence curve?
@hanswurstfriz
Take the two goods whose preference you want to analyze on a co-ordinate plane. Then select any arbitrary point (x1,y1) on the plane. Now move some distance x' in any direction and question if you are better off or worse off at the point (x1+x', y1) as compared to (x1,y1). If the answer is yes then think how should I move(y') in y direction so that I am neither better off nor worse of than (x1,y1). You will now arrive at point (x1+x',y1+y'). At this point you are just indifferent in your preference as compared to (x1,y1). Join these two points and you have a section of your indifference curve. Now repeat this gazillion times 😋
👍
The ending confused me
Hello r u God
Why didn’t my lecturer just say dat 🤦🏾♀️
Iron man: im indifferent
No offense. But I would strongly suggest you illustrated these videos with animations / pictures, rather than hand writing. It gets quite tedious after a while. Other than that, keep up the good job!
ok phil
chill philip
Lol
take a chill pill Phil
No man. This is terrible. Why is it useful? Why do we need it? Where are the examples? Where was it famously used? Sorry. All the comments are "this is awesome" I suggest groupthink. 😊
ı love you/ ı hate my teacher
NO I DONT WANT TO EXPLORE BC
Thank you