Micro: Unit 2.2 -- Utility Maximization

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
- Explain the process by which consumers choose the utility maximizing combination of
goods
when faced with an income constraint
- Practice calculating the marginal utility per dollar (MU/P) for every unit of a good and then
evaluate how to spend a limited income to maximize utility
- Demonstrate how a consumer will determine the number of units to purchase
until all disposable income is spent and utility has been maximized (MU/Px = MU/Py)
- Discuss how consumer decision-making and purchases will change if product prices and
income level change

Are you looking to teach this topic in your class? We have designed an activity to fit perfectly with this video:

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[nguonchhaysong]

I got a microeconomic exam tomorrow but i skipped class on this one so you blessed me haha, thanks you

[lukeshen]

Thank you so much. You've proved that subject expertise =/= teaching ability.

[archbishop]

I'm here trying to salvage whatever I can in my microeconomics class...

[ragibishraq]

Thank you so much sir, your explanations actually are very clear and to the point👌

[kayod]

I understand this, but when my lecturer explained this he didnt use a table so i was kinda confused. Thanks.

[musaa.olarray]

Thanks for the splendid explanation, but is their mathematical way of doing this?

[mahwishmahmood]

Like for example,
There is a one percent increase in income, how much the utility will increase???
Please answer

[zebaali]

Why everytime that a consumer maximises its utilty, the MU per doller spent on Good A equals MU per dollar spent of Good B. Because even if it is not equal i will not consume more as my income if over.

[lolubusi]

These videos are in depth, come back to YouTube please 😅

[mahwishmahmood]

What if the consumer's income increases in percentage? Kindly answer