9c. Quasilinear Utility and Demand

In this video, I introduce quasilinear utility. I show how to compute marginal rate of substitution for quasilinear utility, as well as the result that the indifference curves are parallel. I also outline how to solve for the demand curves when utility is quasilinear.

I finish the video with an example of quasilinear utility, where utility has the form u(x,y) = y + log(x). The example is simple to compute and this simplicity demonstrates why we see quasilinear utility show up so frequently.

For a list of videos and links to these videos (organized by topic), check out the Intromediate Microeconomics video web page:


This video uses calculus and is part of my effort to supplement my non-calculus text "Intromediate Microeconomics" with calculus-based examples and techniques. This book is available for purchase ($20 for an electronic copy) at my storefront: