slutsky hicks.mov

Brian O'Roark from Robert Morris University illustrates the income and substitution effects through the Slutsky and Hicks approaches.

[@VinishaJMulani]

phantom budget line has changed our lives - thanks so much brian

[@411vmskateboards]

Thank you so much for this, I was stuck on this concept for such a long time but you really helped me out!

[@chibuzochilaka4798]

You've done a fantastic job here. You are educating many through your talent. Thanks and God bless.

[@Sarianna24]

just like that all my worries went away. Thank you

[@ipeters61]

I thought I was never going to understand this in class. Thanks for the video!

[@hafshapiasheridan9175]

Thank you so much! You helped me a lot with understanding both of these concepts in only under 12 minutes!

[@berenicebajoleyva6735]

Hello Hoàng Long Võ, The net substition effect is always inverse to the change in the price. The cheaper a good becomes, the more we consume of it.

[@sidd2468]

thank you thank you thank you....different youtube videos were showing different approaches and I was all confused, not sure what is the right approach, not sure which video is right but thanks to you I now know that there are 2 approaches and both are correct.......

[@zc8215]

ssssstay on the sssssame indifference curve for the sssssubstitutiton effect for the hicksssss method gotem

[@MosesTan168]

Hi! This video is extremely helpful! Really grateful to the Brian for posting this. Can anyone help me understand further? The phantom budget constraint, is it keeping the same new price ratios under the old budget?

[@MosesTan168]

Okay to just answer my question: Since the phantom budget constraint passes through the original bundle/ the original bundle is on the phantom budget constraint this means that the old budget constraint's purchasing power is maintained, under the new price ratio.

[@NeerajKumar-xq3ih]

what is the difference between compensating variation in income and cost difference

[@fatimaosman8584]

Thank you very much.. this has been very helpful!! you are a great prof!

[@matts15]

Yep! much clearer now! thanks Brian!

[@martinaamui5117]

Really good explanation! but what about the changes on the y axis?

[@TheKangoeroe]

Hi, If we are talking about perfect substitutes or perfect complements, does an income/substitute effect occur?

[@sophiak4108]

thanks, your explanation is very clear and helpful!

[@hoanglongvo5077]

hey guys, just one question: is there any case in which we have a normal good, but when the price of that good change, the sub and the income effects move in the opposite direction?

[@AlonzoEchavarriaGarza]

I need help. I would like to know the different ways I can derive the Utility function if I have budget constraints, prices and quantities.

[@KhalilHomaam]

in last two minutes sssame and ssssubstitution effects sound very entertaining, I will really enjoy your classes ! Hahaha

[@Postejim]

Very nice video, I always get stuck determining whether it's an income or substitution effect. I believe consuming more of x1 as Px1 decreases should be called the income effect, as you now have more income to purchase more of x1. And likewise as you move to your higher indifference curve (IC2) you are now consuming more of x2 (substituting consumption of x1 for x2). This just makes more sense to me.

[@ynzsbstn]

I speak spanish but found your explaniation way more understable than spanish ones. thank you!

[@gulsonkumarpadhy544]

sir what is hicksian concept of Consumer's surplus

[@DinaraRaRa]

Great explanation! Thank you very much!

[@fluffyangelzx]

How do we determine where the new bundle will be at on the new budget line? Does it depend on whether its a normal or inferior good? Also, how do we compare hicksian and slutsky in a single graph?

[@bamfinsm]

wisterias yes it depends if x is a normal or an inferior good and if you want to compare slutsky and hicks, you can approach by setting the utility functions as homothetic. But just take note different approaches create different outcomes :)

[@parthchougule9097]

Excellent!

[@KhalilHomaam]

You had a big whiteboard, you could accommodate both of these graphs very easily. Anyways this is a good video for understanding the concepts. Thanks

[@1slipknotbreak]

thanks :D n can u please explain the revealed preference theory

[@Emilia-fq6dp]

Great video! I have finally understood this. Thank you :)

[@Kin971022]

Thank you very much.

[@sirslaughter00]

What is the point of using subscripts if you don't even use them to differentiate between points. Also why use x1 and x2 instead of x and y

[@rebel69rebel]

Thank you so much from Spain! Very helpful!

[@jfene72]

excellent explanation ... thanks

[@chhandacharankothari3755]

Nicely explained

[@abdeslambam4724]

i'm from morocco and this was very helpful sir ty so much

[@kbodzioch]

thanks a lot, it's much easier to understand you than my book :)

[@bartoszgiemza952]

Great explanation! Thank You sooo much! :)

[@dikshajain266]

Very clear explanation! Thanks a ton for this :)

[@ideanfc]

thank you king !

[@tausal1]

Thank you so much!

[@Krixxization]

great explanation. Thanks!

[@Tina-bb4hz]

Finally! I get it! Many thanks.

[@soyouknowit]

Well explained. Thank you so much!

[@vegasastras5367]

Thanks mate you well certaintly be a lecturer in any univercity in the world, not like some which a tually are! Could you do the same graph explanation on income substitution effect on labour supply when tax on wage increases please. Subscribed and liked.

[@juliofournier8644]

great, thanks

[@felipelourido8074]

Great video !! thank you so much for helping me understand this!!

[@srijansaxena3677]

Thank You so much Sir.. You explained really well.. I've an exam in two days and this will help me a lot!!!! Thanks Again.. :D

[@KelvinWKiger]

Thank you soo much !

[@niteshtak12]

Nicely explained...thanks

[@tatamigalaxy3473]

You are a saviour!!

[@tingtingzhu824]

Great video~helps me a lot

[@PovilasRut]

Thank you very much, explained everything

[@mirityuy]

Thank you soo so much, you were extremely helpful!

[@aug073]

thanks from brazil

[@陳婉真-s8g]

thank u~~so clear and helps a lot!!!!

[@kamransafarli]

Thanks a lot!

[@huansunny8563]

Thank you!!!

[@HemaSankarG]

thank you. so helpful

[@ADUTIFULINDIAN]

so clear...so easy nowwwww.... many thxxxxxxx

[@harunavongjenyaknan6016]

superb

[@RACV15]

THANKS!

[@tildabegede3280]

Well explained

[@komsinica88]

this is exellent.thank u :)

[@muguku]

erokamano meaning thank you so much

[@esraozturk9269]

nice video finally I understand . Thank uuu:)

[@dirkneuhauser8213]

thanks, that really clarified.

[@Karenvskarip]

thank you so much(:

[@monikapanjiyar470]

thank you :)

[@radhikacommunityofeconomic5396]

tnks

[@naitikgreyman]

Super fuckin awesome,understood everything

[@nidakhan5593]

helped :)

[@srijansaxena3677]

Thank You so much Sir.. You explained really well.. I've an exam in two days and this will help me a lot!!!! Thanks Again.. :D

[@Tacticalgamer2011]

Thank You so much Sir.. You explained really well.. I've an exam in two days and this will help me a lot!!!! Thanks Again.. :D