Indifference curves and marginal rate of substitution | Microeconomics | Khan Academy

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Imaginary economics isn't going to make you rich lol.

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@@bunchberry_ so true. The concept of 'utility' is completely rubbish. Ideology has infected economics unfortunately...

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@@landcruiserfan4206 I’m currently learning this right now - I had a feeling it was useless. What aspects of economics are worthwhile? Macro economics?

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The only thing you'll be rich of are tears because you realized that life ain't handing out free money

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💀

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How's it possible that the video is one year old and your comment is 6...

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@@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

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Waiting for you dear🤣

[@McHughism]

It's been 7 years, can't remember what an indifference curve is 😂 can't say I've ever used it

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What did Khan study at college?

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I’m taking this for a Master’s degree and this video is better than anything I’ve received in three weeks.

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Hope you're doing good now and got your Masters

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A big thank to you SAL! What my teacher couldn't teach in 2 hrs, u taught us in 10 minutes:)

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It is different.

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Are you sure that Sal didn´t prime your learning and Khan, when explaining in a slightly different way made you understand?

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this channel is what keeps me from dropping my econ minor!!! watched this before class and understood everything!!! thanks!!!

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Crystal clear. Thank you Sal. I do not know how much knowledge you have in your mind. What microphone are you using?

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comments from 6 years ago but video was “uploaded” today

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Aliens have taken control over time travel!

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KZbin is high again

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*SYNTAX ERROR*

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why is that? what happened??

[@rishabh5750]

@@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

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How is it that this guy possesses knowledge in every field?

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awesome crystal clear vid! thankss

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Why sal hasn't won an nobel yet

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so Ted Mosby's really teaching Econ huh

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Excuse me, you're in the wrong class!

[@noname-bu3dv]

This sounds like Ted??

[@IvanEugenioCamachoNavarro]

great and simple explanation! Thanks.

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Yoh the best Summary ever u the Best 🥺

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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?

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what is the link to the budget line video ?

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Tha'ts so well explained .Thank ynou

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wish my mathematics fundamentals were this solid

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[@brd8764]

To note as difference and it is just graphical to realise...

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Thank you for your effort and clear explanation.

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YOU ARE A GIFT....!!!

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Sal is top 5 human being on earth and it's not even a discussion

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... this is really good...

[@ronycamacho7132]

Could you please show on the graph, where is the middle point?

[@AbhishekSahaShuvro]

Great❤

[@off-side7822]

Very helpful

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While studying at Khan Academy:- Indifference.... indifference.... indifference.... I'm built different 😂😂😂😂😂😂

[@minusforty4323]

You're the man

[@sugaudacity]

the slope of the tangent line at a point on the indifference curve = marginal rate of substitution

[@joaquin734]

Great Video! Thank you

[@LkMusicFromFrance]

this is awesome, thanks a lot for the help!!!!

[@hermelaamare5715]

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??

[@numaniqbal2261]

Thankyou

[@toncamaj1721]

How are comments from 3/5 years ago but video was uploaded 6 months ago how did u do that

[@jamdhere2755]

Time travel

[@leoabby0084]

He's a founding member of Illuminati!!! 🤫🤫 (*dont tell anyone*)

[@itunuoluwao.7561]

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

[@sourcloud_]

thank u THAnk U

[@gregolevi]

Great stuff

[@saifabumghaiseeb1268]

you're amazing sirrrrrr

[@Masteridea101]

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?

[@boonsuen1997]

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

[@Masteridea101]

@@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?

[@boonsuen1997]

@@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...

[@Masteridea101]

@@boonsuen1997 thanks a lot. Still I'm not clear. But anyway thanks a lot for your efforts to make me understand.

[@booklover-hu9tw]

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:)

[@homiedontplaythat]

Logic within economics, we're is my tylenol?

[@mindpowermath]

Thank you good lecture.. keep up the good work

[@waseemumrani]

Great

[@zany9009]

this was absolutely amazing

[@rauzahossain8023]

Love from Bangladesh

[@alaaidris7066]

Thank you!

[@alaaidris7066]

You really helped me!!

[@UshanthJayakumar-hu3xd]

What is the difference between Marginal Rate of substitution and Marginal opportunity cost?

[@zainalii]

I have a question why curve is of convex shape?

[@ivyrocks8518]

Because the MRS diminishes due to the law of DMU

[@JimyFlips]

thanks!!

[@drallisimo34]

great lesson!!!

[@Kethlylopez]

How does it become negative 5?

[@hasnainkhan6728]

Anyone explain me how does the TU is equal . I don't understand. Help me if you know

[@ciaagency4818]

is the slope in other words is marginal rate of substitution the same thing as opportuniy cost?

[@remixowlz]

Fantastic explanation.

[@Oksana-mw9vj]

Is it possible to make a long story short. It is madness.

[@diegoamores9295]

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

[@Apollo_the_Zebra]

thank you soooo much

[@lukamilosevic7864]

Merci beaucop!

[@hanswurstfriz]

so how exactly do I draw the Indiffrence curve?

[@nikhilkolhe2064]

@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 😋

[@adriansrsa90]

Daniel Mehta

[@KartingApexKing]

Why is this unlisted -_-

[@FlorinHulpoi]

I LUV U

[@MrMarkgyuro]

great explanation!

[@omarslive4275]

Thank you

[@elvis661]

thanks for the contents, it would be nicer if you could stop repeating yourself

[@nasppsan]

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?

[@bunchberry_]

Indifference curves are assumed to be true. Doesn't matter if they're actually true or not. Microeconomics is very abstract.

[@francescomondini7065]

But the marginal rate of substitution is that times -1

[@TumbaCool-c4k]

Why does he sound like VladTv😅?

[@peachstheticss]

Didn't get it

[@keytoniayorke185]

Why didn’t my lecturer just say dat 🤦🏾‍♀️

[@jessiemayfield6749]

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. 🤦🏽‍♀️

[@strawberrytotalcoke]

Iron man: im indifferent

[@aneezamistry7748]

Hello r u God

[@brieelise5402]

The ending confused me

[@MuhammadIsmail-qd7me]

👍

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ı love you/ ı hate my teacher

[@mikehollowayuk]

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. 😊

[@meow1990_2]

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!

[@fathermari]

ok phil

[@colewilie7231]

chill philip

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Lol

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take a chill pill Phil

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NO I DONT WANT TO EXPLORE BC

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Thank you

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Thank you!!!

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Thank you sir

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Thank you.☺