Slutsky Equation: Example Problem

[@austinlongoria7955]

You have literally been my professor all year. Bless your soul, sir.

[@jaredgreathouse3672]

You're single handedly carrying me through Ph.D Microecon, and I will be forever grateful for this. I really wish all instructors could explain this like you do

[@blhfs]

You did such a great job showing how this concept relates to the basics of utility, thank you so much!!

[@domsjuk]

That's a whole lot of work for one silly sub-question on the exam. xD Cheers to you for illustrating this complex mess so clearly!

[@ochiengdavid1274]

I have learnt a lot from you...thank you sir.

[@ritanjalisaraf3248]

Well explained, God bless you sir🙏

[@ujjwalsharma7283]

You are THE BEST.

[@EconomicsinManyLessons]

Thank you so much!

[@ThiagoRodriguesLuz]

I didn't understand when you mutiplied the derivation of Hicks demand by utility (fixed).
There is a mathematical property that explains it?
Whether there is, could you please tell me a reference where I could study?
Thanks

[@nenengacaptain]

Thank you so much sir! You the best!

[@nithyalinishankar3818]

Great 👍🏼 explanation 😊

[@idrisakinlotan7303]

Hi Economics in many lesson. I appreciate your effort on this particular video. But please, I would really appreciate if i can get explanation on how you got the partial derivative of the compensated demand function. I hope to hear from you soon, best regards.

[@EconomicsinManyLessons]

I will rewrite the compensated demand as X = Py^(1/2)Px^(-1/2)U. I moved the price of good X into the numerator to make it easier. The partial derivative is
-(1/2)Py^(1/2)Px^(-1/2 - 1)U. The exponent on the price of Good X is brought down in front and then I subtracted 1 from the exponent on the price of good X. Simplifying to get -(1/2)Py^(1/2)Px^(-1.5)U, which equals -Py^(1/2)U/2Px^(1.5). I moved the price of good X back into the denominator.

[@idrisakinlotan7303]

Thanks a bunch prof, may almighty God increase you knowledge. Amen

[@philipaklorbortu6192]

The best of the best 👌

[@EconomicsinManyLessons]

Thank you so much!

[@dayeetachaudhuri1954]

This realy helped me thank you

[@avestaabdulrahman6549]

Very helpful! Thank you

[@edisonvegaofficial]

Really helpful.. thank u so much

[@lennyste]

Well done, thanks!

[@missgrenade653]

I like your video but the chewing sound made it difficult

[@vydadpyriel2573]

Ty for the lecture

[@wanjadouglas3058]

YOU ARE THE BEST

[@rayindaputri1656]

Sir, if i want to do a numerical calculation, what price should I substitute? Is it the price change(delta P)? But the result is different from the manual calculation (finding x1 first then x2) 😭😭 did i make a mistake? I'm so overwhelmed😭😭

[@mateusfairbairn]

What kind of good is good X? Normal, inferior? This helped a lot, thanks

[@shreyanshsingh1363]

Substitution effect has no change for Normal or Inferior but the Income effect will have some changes when good is normal IE will be negative and when goods are inferior IE will be positive.

[@aemonalam6830]

Thankyou sir 👍

[@artsygirl5948]

This video is very detailed and well-delivered! May I ask, what is the purpose of the equation? and why would it *need* to be equal in the end? Are there any theories that could help interpret the equation and its scope? Thank you! ^_^

[@l8870]

thank you so much

[@RB98765]

MRS = - MUx/MUy … but we didn’t take the negative sign?

[@IliyasJemal-s5p]

Proof mux=px

[@IliyasJemal-s5p]

❤

[@geetagurung7832]

Why there is Minus in substitution effect

[@domsjuk]

It appears due to the derivation. You add a ^2 in the denominator and change the fraction's sign.

[@AlejandroAlvarez-uq3ri]

Great vid but the mouth sounds you make throughout make me want to throw a brick at the computer.

[@xiaoyunliu8866]

ty sir. i got it clearly :>

[@egecakr1058]

thanks

[@Chch-u5e]

شكرا

[@bushrashaikh5240]

This is tough

[@نيأشكأ]

SlutSky💪

[@iyobosajoshuaowiejosh900]

You are a god

[@alexandre2245]

Thank you so much

[@EconomicsinManyLessons]

You are welcome!