You explain so well AND you are so cheerful while explaining which is so rare. Thanks for making learning fun. Wishing you luck for all your future ventures.
Hi! Great video! I just have one question on query about the Slutsky decomposition that assures the negativity of substitution effect. I don't understand how does it assure that the substitution effect is always negative? Since you will always consume more of x1 due to the substitution effect, shouldn't it mean that the substitution effect is always positive as shown in the 1.3 in your video? Thank you so much in advanced!
I learnt this one, but can you tell me if we are solving for two goods and the price of one of them changes, how can we find bundle y ? because after we find delta m and then we try to find new equilibrium, I don't know that should i use the last quantity for the good that it price didn't change or should i find new quantities for both goods with new budget?
It is the bundle you purchase given the new price and the "compensated income". If the price goes up, then the compensated income delta M is positive. If the price goes down, then the "compensated income" delta M is negative.
@@IrisFranz I meant the method to solve the question, like in this one where you plugged in values in the function, will we follow the same method which would lead to an opposite result?
![(M4E5) [Microeconomics] Finding Income and Substitution Effects: Example for Slutsky Decomposition](/img/n.gif)
Her frequent smiles end up all my stress of exams..
Got stuck on this concept, but you and your clear style of teaching guided through it. I really appreciate it. Thank you so much, Iris! 😊🙏
You're very welcome!
You explain so well AND you are so cheerful while explaining which is so rare. Thanks for making learning fun. Wishing you luck for all your future ventures.
Thank you; teaching has been my passion of life! :)
Your videos are so so helpful. You explain things very concisely and easy ! thank you !!!
it couldn't be better than this! it is perfect
U really explained the case with a lot of smile and fun, really awesome
Thanks!
Thank you so much! You save my final exam !
Thanks for helping at 11th hour
bro i was like why the hell we dont take 40 bucks away from him when i first read this. after 2 days i finally got it now lmao. thanks
It's so helpful.
Keep up with the good work.
Thank you so much for all the videos about microeconomics, it really helped!
Glad to hear!
Thankyou soo much. You are really a very good teacher. Thanku sooo much for clearing this concept..
You're welcome! Happy learning
Thanks a lot. U explain sooooo well. I understood easily
Glad that it was helpful!
Hi! Great video! I just have one question on query about the Slutsky decomposition that assures the negativity of substitution effect. I don't understand how does it assure that the substitution effect is always negative? Since you will always consume more of x1 due to the substitution effect, shouldn't it mean that the substitution effect is always positive as shown in the 1.3 in your video? Thank you so much in advanced!
th-cam.com/video/-ogdguxsavA/w-d-xo.html
This clip explains your question.
Please come up with more videos.
Subscribed:)
It's on my to-do list. Happy learning!
Where did you get the equation for x1?
I learnt this one, but can you tell me if we are solving for two goods and the price of one of them changes, how can we find bundle y ?
because after we find delta m and then we try to find new equilibrium, I don't know that should i use the last quantity for the good that it price didn't change or should i find new quantities for both goods with new budget?
Thank you so much!. You explained it very clearly.
Glad it was helpful!
My concept was clear...thankw 👍
Glad to help!
but even for the initial formula p1*x1 is not equal to 120 so how could the thing you do hold true, tnx for sharing
It really helped! thank you so much!
You’re welcome!
Thank you so much 💕
You’re welcome!
I subscribed ❤️ and 2k completed 😀
Thanks! 😄
Perfect👍
Thanks!
呃，虽然观念基本理解了，但我还是想不明白为什么1式中的 P1X1=M，14*3=120？
No, it's 10+(120/10*3)=14, not 14*3=120. Read page 140.
i would ask you miss. so what's the meaning of Y in the curve. if X is original bundle and Z final bundle, so what the meaning of Y
It is the bundle you purchase given the new price and the "compensated income". If the price goes up, then the compensated income delta M is positive. If the price goes down, then the "compensated income" delta M is negative.
which varian book u followed here ? is it from advanced micro or introductory varian ??
"Intermediate Microeconomics" the 9th edition.
thank you ma'am
Thanks you so much
Can yu tell me which effect is dominant in the situation of normal good... Please!!!
th-cam.com/video/-ogdguxsavA/w-d-xo.html
Thank you, you help me so much
Glad to help!
Thank you
You’re welcome!
Isn't the substitution effect negative for normal goods?
JOMP Substitution effect is always negative, regardless of normal or inferior good.
Check this out
th-cam.com/video/-ogdguxsavA/w-d-xo.html
@@IrisFranz thanks!
Will the same happen if price increases?
The opposite will happen. The purchasing power of your money drops when the price rises.
@@IrisFranz I meant the method to solve the question, like in this one where you plugged in values in the function, will we follow the same method which would lead to an opposite result?
Yup!
@@IrisFranz Thank you so much! Going to recommend your channel to others studying economics!
hw u mk it so easy
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