According to Amit sir , (Byjus) Income effect of the normal good is negative while of inferior and giffen good is positive because he considers only the Price change and ignores the real income effect.
In the case of Inferior goods, the diagram depicts that if the price of Good X decreases the consumption of both Good X and Good Y will increase. But, as only Good X is an inferior good, consumption of only A should increase, not both X & Y.
Sir here I understood that decrease in price is same as increase in real income. So why is the effect of decrease in price different from increase in real income, although both r same??
In case of inferior goods (at 2.38), as real income increases due to decrease in price of inferior goods (not the money income), the Quantity demanded should rise since inferior goods do not violate the law of demand and you also said this but instead of increasing quantity demanded you decreased it opposite to law of demand.
Yes vivek you are right. But at 2:38 I am talking about just income effect which will decrease the quantity demanded of inferior good but when substitution effect will work along it than substitution effect will increase the demand and as SE is more than IE so overall demand will increase with decrease in price. But when we are looking at just income effect than demand will decrease. I hope you will get it.👍
That is not substitution effect..that is the definition of cross elasticity of demand. Please read the definition of substitution effect, you will get it.
You are saying that substitution effect should be negative bcz you are comparing price and quantity demanded of the same thing But in substitution effect we measure the quantity demanded of second thing based on the price of first thing...
Aos sir kindly chk it if I'm not wrong that Income effect is -ve in case of normal good as p falls real income rises qd rises so here -ve relation between income effect of price fall and qd. In the same way there is +ve income effect in case of inferior good as p falls realincome rises consumer will cut off his expenditures on inferior good and icrease the consumption of superior good so +ve relation b/w income effect of price fall nd qd.
No it's negative only Because in price effect we look at increase or decrease in price of commodity, so here price of x is decrease and quantity of x increased
Sir can you please make videos on demographic theory, their rates and ratios, environmental economics theory, agriculture economic and industrial economic Poverty, unemployment and inflation measurements in India with current data I know it's looking greedy 😜 But please
Inferior Good keep case may substitution effect and income effect dono negative kaise hoga. Xam May substitution effect positive or income effect negative hoga sir
substitution effect can never be positive until and unless you want to buy that product , price of which is increasing. and a rational consumer would never do that... so substitution effect can never be positive. there are mistakes in many books.. you need to change your book😊
Dono negative hoga substitution effect har kisi k sath nigative hi hota hain kiyu ki ye cross elasticity wala Nehi hain or income effect v nigative hoga kiyu ki income bdne se koi e v inferior goos nehi leta hain thodaa substitute kor leta hain kiyn ki yaha income effect se substitution effect bada hota hain 😊😊 me yehi somjha baki sir koo pata Hain ..... Kuchh galat bola too sorry 😊
Sir ji aap jise negative effect bta rhe book m use positive effect Or jise aap positive effect bta rhe book m use negative effect bta rkha h..halaki logically apki baat sahi lekin exam m agr question aayega toh aise situation m kya krenge... Book Name:- Introductory Microeconomics by Sandeep Garg
Sir price effect of normal goods k case m price or quantity k bich ka relationship negative h n but effect toh positive hua n sir.. And similarily for others effect.. Plz reply sir
Relationship negative hone se effect negative hoga, aisa jaruri h kya sir.. Effect toh positive h n.. Qki price k ghatne se consumption badh rha h Or iska mtlb h ki price or consumption k bich m negative relationship h but qki price k ghatne se consumption badh rha h mtlb consumption p price ke ghatne ka positive effect hua n sir
@Rohit Dubey ....Dear smart sir .. first of all ....In a hurry to reply ..you didn't read that I haven't said that I have read all books. Secondly, i just said that all books do not say that the income effect is positive in inferior goods. Thirdly, which book is saying right and which book is wrong depends on your interpretation which ultimately depends on how much your basics are CLR 🙏
According to Amit sir , (Byjus)
Income effect of the normal good is negative while of inferior and giffen good is positive because he considers only the Price change and ignores the real income effect.
Bhaiya aap samjhate bohot Accha ho lekin thoda dhire Bola Karo toh aur Accha se samajh me ayega please 🙏🏻🙏🏻
Yes
Speed kmm kr liyaa kroo
pehle mujhe bhi aisa lagta tha, bad me dekha to speed 2x thi
In the case of Inferior goods, the diagram depicts that if the price of Good X decreases the consumption of both Good X and Good Y will increase. But, as only Good X is an inferior good, consumption of only A should increase, not both X & Y.
The best explanation so far ...
Sir bhot confusing topic tha ab jakr samajh me aaya, thanku sir 🙏
Very nice bro 👏👏👏
Best explanation as always 👌
Sir here I understood that decrease in price is same as increase in real income. So why is the effect of decrease in price different from increase in real income, although both r same??
Nice sir 👍👍👍👍👍👍👍
Very helpful video bro keep it up
smjhaaya accha h bhai aapne lekin awaaj thode der baad irritating ho gyi
In case of inferior goods (at 2.38), as real income increases due to decrease in price of inferior goods (not the money income), the Quantity demanded should rise since inferior goods do not violate the law of demand and you also said this but instead of increasing quantity demanded you decreased it opposite to law of demand.
Yes vivek you are right. But at 2:38 I am talking about just income effect which will decrease the quantity demanded of inferior good but when substitution effect will work along it than substitution effect will increase the demand and as SE is more than IE so overall demand will increase with decrease in price. But when we are looking at just income effect than demand will decrease. I hope you will get it.👍
@@LearntoCompete why is SE more than IE here ??
@@nehahooda2449kyuki superior substitute available h
Ag laga di ag ag 🔥🔥
you are an extremely talented teacher.
Nice explanation. Helpful video 👍👍👍👌👌
लेकिन sir कही पर substitution effect तो पॉजिटिव दिया है। जैंसे की एक sustitute का प्राइस कम होने से दूसरे सुब्स्टीटूट की डिमांड कम हो जाना।
Plzz clear
That is not substitution effect..that is the definition of cross elasticity of demand. Please read the definition of substitution effect, you will get it.
Awesome explanation
Thankyou..🙏.. keep supporting and sharing🤝
Please check the last table and confirm it giffen good mein income effect nagitve Hy ya positive?
Some people are questioning your table so please check and reply about the last table , income effect and substitution effect
You are saying that substitution effect should be negative bcz you are comparing price and quantity demanded of the same thing
But in substitution effect we measure the quantity demanded of second thing based on the price of first thing...
इस टॉपिक पर सबसे अच्छी व्याख्या।
Aos sir kindly chk it if I'm not wrong that Income effect is -ve in case of normal good as p falls real income rises qd rises so here -ve relation between income effect of price fall and qd.
In the same way there is +ve income effect in case of inferior good as p falls realincome rises consumer will cut off his expenditures on inferior good and icrease the consumption of superior good so +ve relation b/w income effect of price fall nd qd.
I think it is also mentioned in kotsyyanious book page 25
m srry Maria.. but you r saying it other way round.. income effect is positive in case of normal good and negative in case of inferior goods
i think you didn't watch the video with open mind.. please forget what you have read already and watch the video again.. you will understand
Right explanation maria .
Dear Maria if real income increases it will lead to an increase in QD of the commodity... Which a positive effect not negative.
I like everything about ur class....but apka voice quality tik nahi hain....tura improve kijiye voice
U r going grt! So helpful vedios! Tysm sir
Thank you so much sir 🙏😊
Sir is it nominal good and giffen good are same?
Brother at 3:09 real income increase ho rahi hai ki money income increase ho rahi hai?
plz reply
Money income..dear
@@rimjhimvlogs915 Yeah
Sir voice quality improve hona chahiye
Price effect is positive for normal goods?
No it's negative only
Because in price effect we look at increase or decrease in price of commodity, so here price of x is decrease and quantity of x increased
Which software do you use to draw graphs Sir?
Sir thoda normal speed me smjaya kro plzzz baki aap bohot acha smjate ho
Your videos have been helpful thanks a lot!!!
Thankyou🙏
bruv could you do a past paper question on this? great video though!
Nice 🙂🙂🙂
Very Good
Great
Bhiaya very nice explaination thank you so much
Thankyou🙏
Sir why we have to reduce money income or hicks method
Thank you so much
Sir can you please make videos on demographic theory, their rates and ratios, environmental economics theory, agriculture economic and industrial economic
Poverty, unemployment and inflation measurements in India with current data
I know it's looking greedy 😜
But please
@@athermushtaq8097 mind your own business
Inferior Good keep case may substitution effect and income effect dono negative kaise hoga. Xam May substitution effect positive or income effect negative hoga sir
substitution effect can never be positive until and unless you want to buy that product , price of which is increasing. and a rational consumer would never do that... so substitution effect can never be positive. there are mistakes in many books.. you need to change your book😊
Dono negative hoga substitution effect har kisi k sath nigative hi hota hain kiyu ki ye cross elasticity wala Nehi hain or income effect v nigative hoga kiyu ki income bdne se koi e v inferior goos nehi leta hain thodaa substitute kor leta hain kiyn ki yaha income effect se substitution effect bada hota hain 😊😊 me yehi somjha baki sir koo pata Hain ..... Kuchh galat bola too sorry 😊
Sir ji aap jise negative effect bta rhe book m use positive effect Or jise aap positive effect bta rhe book m use negative effect bta rkha h..halaki logically apki baat sahi lekin exam m agr question aayega toh aise situation m kya krenge...
Book Name:- Introductory Microeconomics by Sandeep Garg
Sir price effect of normal goods k case m price or quantity k bich ka relationship negative h n but effect toh positive hua n sir.. And similarily for others effect.. Plz reply sir
Relationship negative hone se effect negative hoga, aisa jaruri h kya sir.. Effect toh positive h n.. Qki price k ghatne se consumption badh rha h Or iska mtlb h ki price or consumption k bich m negative relationship h but qki price k ghatne se consumption badh rha h mtlb consumption p price ke ghatne ka positive effect hua n sir
Sir in income. N price effect money income changes
Itna jaldi mein kyu ho bro
sir UGC net ki tayari bhi krate hai aap ,i want to join your course
Hal varian and kotsyni me bhi giffin goods ka income effact positive bataya gaya h
Jyada speed ho raha he😒
well explained
Sir aap slatesky equation bhi samjaya
carry on ,,, make more vdos over Delhi University UG sem 1
Thnx a lot sir ....u r great
Plz disscus about Snob good
Excellent
Thanks sir ☺️
Sir plz upload more and more videos.....
Thank you
Nice
In inferior goods , income effect positive hota...all book says it..
Its upto you what you believe.. I have explained wht i know🙏.. and don't say that all books says it as I am sure you have not read H.L.Ahuja yet.🙏
@@LearntoCompete yes 😂😂 ap boht atche ho sir ❤️❤️
@learn to compete _ And I'm sure that you haven't read modern microeconomics by A. Koutsoyiannis.
@Rohit Dubey ....Dear smart sir .. first of all ....In a hurry to reply ..you didn't read that I haven't said that I have read all books. Secondly, i just said that all books do not say that the income effect is positive in inferior goods. Thirdly, which book is saying right and which book is wrong depends on your interpretation which ultimately depends on how much your basics are CLR 🙏
Gautam Buddha🙏
Tq
According to ml jhingan this is wrong
Slowly sir
3:00