How to calculate Marginal Rate of Substitution (MRS) using indifference curves

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  • Опубликовано: 30 ноя 2024

Комментарии • 54

  • @iThinkerer
    @iThinkerer 11 лет назад +7

    You have the ability to explain complex concepts in an intuitive way...
    Which makes you a better teacher than most and a lot better at explaining ideas than the vast majority of textbooks which have a ridiculously arcane and non-intuitive way of explaining things.

  • @lulululu175
    @lulululu175 Год назад +9

    Bro, MRS = -delta Y/delta X. Don't forget the negative when writing your formula. Because one would wonder where the negative at the end goes. For instance the way you wrote it MRS from A to B should be -2 but you just dropped the negative without explanation and indicated that it is 2. It's positive because initially there was a negative sign in the formula which when multiplied with another negative it became positive. Otherwise, the explanation was clear and simple.

    • @edenshuuya4723
      @edenshuuya4723 5 месяцев назад

      You just saved me so much time. thank you

  • @economicsfun
    @economicsfun  12 лет назад +2

    Thanks! That is what I like to hear.
    Make sure you like MyBookSucks on Facebook (see link in video description). This will help other students find the educational videos.

  • @lJADU
    @lJADU 10 лет назад +32

    Just a little thing: At 5:20, you say y is 20-10 = -10. I think you meant 10-20, as you've got to calculate the NEW value take away the OLD value. :) Additionally, i think it was supposed to be (70-40), not (40-70)..

  • @N_lls
    @N_lls 11 месяцев назад

    Really I watched many videos but don’t understand, only from you I get it mmmmmmmuuuchh thanks

  • @economicsfun
    @economicsfun  12 лет назад +1

    appreciate the kind words. I keep trying to get the word out, so make sure you tell your suffering fellow students.

  • @johnnyharris
    @johnnyharris 13 лет назад +9

    this is amazing. Thank you!!!!

    • @-cutekey2454
      @-cutekey2454 Год назад +1

      yooooooooo what a gem that i found this

    • @Evan.l11
      @Evan.l11 Год назад

      Wow, this video aided the famous Johnny Harris in acquiring his economics degree!

    • @ameerhejazi5428
      @ameerhejazi5428 Месяц назад

      What the hell? I never thought I would see you in a youtube comment section about Marginal Rate of Substitution LOL.

  • @economicsfun
    @economicsfun  11 лет назад +1

    Thanks for the compliment. Often in economics the slope is ignored or dropped. I am working on some new videos on Consumer Theory where I discuss this explicitly. Great observation tho!

  • @economicsfun
    @economicsfun  11 лет назад +4

    Right, often in economics we drop the sign because it is implied. I should have mentioned that explicity.

  • @economicsfun
    @economicsfun  12 лет назад

    Right, this is a bad habit I have of ignoring signs. I will fix this video in a revised version. Thanks for good observaton.

  • @MustangWWII
    @MustangWWII 5 лет назад +1

    Thanks for this. Pearson's textbook and online course over-complicates formulas making it appear to much more complicated than it is.

  • @ManuellaEm
    @ManuellaEm 11 лет назад

    W's utility function is U (x; y) = xy. W consumes 5 units of x and 25 of y.
    a)W would be willing to make small exchanges of x for y in which he gives up 5 units of x for every unit of y he gets
    b) W would be willing to trade away all of his x for y so long he gets more than 5 units of y for every unit of x he gives up
    (continuing)

  • @economicsfun
    @economicsfun  11 лет назад

    Thank you for such an articulate and positive comment. I really appreciate it.

  • @WHATISUTUBE
    @WHATISUTUBE 12 лет назад

    Wow, why couldn't you be my professor. You've essentially made a day lesson short and sweet.

  • @milind62
    @milind62 11 лет назад +2

    I can not thank you enough for this. But I face a problem I wish to go sequentially through all the videos. But can't figure out the sequence. For example I just listened to 'How to find our MRS using indiffrence curve' But which is the next video I should listen to? will you please guide? Thanks again

    • @saurabhhuddar
      @saurabhhuddar 11 лет назад

      Try referring to the index of a microeconomics text book. That would help you in arranging.

  • @alfatihbaldo
    @alfatihbaldo 11 лет назад +9

    Just wondering, at 3:15 you did -20/10=2 shouldn't it be equal to -2 instead?

    • @lulululu175
      @lulululu175 5 месяцев назад

      He forgot a negative sign in the formula at the beginning.

  • @economicsfun
    @economicsfun  12 лет назад

    You are very welcome! Happy to hear the channel is helping you. I have channels on statistics, algebra and calculus too. You can see the links on MyBookSucks FB page.
    Make sure you like MyBookSucks on FaceBook(see linking video description). This will help others find the educational videos too.

  • @sethhampsey404
    @sethhampsey404 11 лет назад

    My book does suck haha thank you for the great instruction it relieved so much frustration

  • @ManuellaEm
    @ManuellaEm 11 лет назад

    ..
    c) W likes x and y equally well so he is always willing to exchange 1 unit of either good for more than one unit of the other
    d) W will always be willing to make trades at any price if he doesn't have equal amounts of the two goods
    e) None of the above
    why is e) the correct answer?

  • @fcknfrank
    @fcknfrank 12 лет назад

    I don't have Facebook, but I will definitely spread the word around class

  • @ManuellaEm
    @ManuellaEm 11 лет назад +1

    if it is none of the above what is the correct answer?
    thanks!!

  • @chumamemela6217
    @chumamemela6217 4 года назад +1

    you're a great teacher man!!!!! you make this shit seem like 1+1, keep it up

  • @fcknfrank
    @fcknfrank 12 лет назад

    holy crap thank you for this channel

  • @fortydash1
    @fortydash1 13 лет назад

    very very useflu video...helped me with my dumb aplia homework haha Thanks!

  • @johnsallycodrington4935
    @johnsallycodrington4935 10 лет назад +10

    Point C to D is INCORRECT!!!!!! It is not consistent with the first two points.

  • @bisikwachriscentia9827
    @bisikwachriscentia9827 7 лет назад

    It has made life easier

  • @RexVirtual
    @RexVirtual Год назад

    Love this video!

  • @aapb2
    @aapb2 11 лет назад

    Hi was just wondering how we would calculate an indifference curves with diminishing rates of substitution that meet at some initial allocation? thank you

  • @economicsfun
    @economicsfun  11 лет назад

    Yes many economics books suck, for sure. I thought for a very long time that economics lends itself to animation -- instead of trying to figure out graphs in a book.

  • @RumIsGood1
    @RumIsGood1 12 лет назад

    Where are the other thousand like buttons? Like + Subscribed

  • @economicsfun
    @economicsfun  11 лет назад

    Nadia, yes I do have some videos on how to calculate the derivative. If you go to my channel economicsfun, you can search on the word calculus and you will see several videos and one of the is on MRS. If you need more help it is probably easiest to send me a message on the MyBookSucks FaceBook Page.

  • @SenpaiTorpidDOW
    @SenpaiTorpidDOW 11 лет назад +1

    Great video, thanks a lot :D

  • @juliapimenta908
    @juliapimenta908 Год назад

    Hi! I've noticed a massive mistake in your video that confused me. You're explaining the mean rate of substitution-the marginal rate of substitution is only calculated with one point using a tangent. I failed a multiple-choice question because of that :)

  • @Maso_Ndy
    @Maso_Ndy 12 лет назад

    It does not make much of a significant difference though, as we are looking at the absolute value for our conclusion. Thanks for raising the point though.

  • @VicSMeIsTeR
    @VicSMeIsTeR 6 лет назад

    Thank you!

  • @abrahampatience456
    @abrahampatience456 3 года назад

    Very understanding, thanks

  • @ruchishah2929
    @ruchishah2929 12 лет назад

    thanks so much!

  • @TeddyTefera-q1x
    @TeddyTefera-q1x 9 месяцев назад

    Wow ❤❤❤❤❤

  • @anandrajak8633
    @anandrajak8633 2 года назад

    Understood

  • @laurase8188
    @laurase8188 5 лет назад

    I tried reading my book but it just couldn't understand it. Thank you so much!!! really helpful

  • @prodbyfm
    @prodbyfm 2 года назад +1

    i hate economics so much

    • @prodbyfm
      @prodbyfm 2 года назад +1

      i still hate economics

  • @economicsfun
    @economicsfun  11 лет назад

    You are welcome. Make sure you like MyBookSucks on FaceBook (see link in video description). This will help others find the educational videos.

  • @economicsfun
    @economicsfun  11 лет назад

    You can see links to the economicsfun channel and the MyBookSucks FB page in the video description.

  • @SenpaiTorpidDOW
    @SenpaiTorpidDOW 11 лет назад

    I don't have a FaceBook :)

  • @Destiny_Fvcker
    @Destiny_Fvcker 6 лет назад

    Thank you so much!