3. Budget Constraints and Constrained Choice

MIT 14.01 Principles of Microeconomics, Fall 2018
Instructor: Prof. Jonathan Gruber

This lecture continues the discussion about consumer choice and what happens when budget constraints are introduced.

License: Creative Commons BY-NC-SA

[gilgamarsh]

Jonathan Gruber is such an incredible instructor, he and MIT should be immensely proud of these lectures.

[tarafahey]

00:00 Setting Up Budget Constraints
05:25 - - > Marginal Rate of Transformation
07:16 - - > Weight Watchers Example
12:16 Opportunity Set
19:15 Tangency
22:10 The Maths
31:00 Food Stamps Example
38:39 - - > Imposing Preferences
44:13 - - > Effective? (vs money injection)

[yeahwhat]

If I don't have budget constraints I would attend MIT after high school.

[alita]

Thank you so so much for publishing this. I'm an adult student finishing my degree with an online university and I cannot, for the love of God, understand a single word of the crappy tutorials that my university provides. These videos not only make everything a lot easier to understand but it also makes it so much fun and engaging. Thank you MIT and thank you Professor Gruber.

[mauriciobemfica]

Mr. Gruber makes microecon more interesting than my classes in my Masters!!! Thanks MIT!!!!

[nycbankers]

I told my mom I was attending MIT she was so happy but little does she know my budget constraint only allows me to go to YouTube University

[esosesos]

Thanks also to the video editors for showing all the diagrams.

[debunklies]

A good idea would be to download the transcript, play the video at 1.75 speed and look at the transcript and the graphs (could been found in the handouts section). If you don't get something you could play the video at lower speed.

[thequickreviewer]

Absolutely love the way he explain things with ease and also with great examples with which you can relate.

[sebastianlastname]

This is going hand-in-hand with my online microeconomics class. Thank you so much for posting these lectures, I wish I took this class in person, but this makes up for it!

[hongyo]

Given my buget, 최상의 선택을 하는 것(=further indifferent curve)= tangency 를 구하면 됨, 그 bundle=optimal choice(A<B>C)

[RaylinRecords]

Where are the black and red dots for the opportunity set?

[ShyamSunder-setq]

let's assume that your parents have given you some amount of income, we'll call it "WHY"

[muchbuild]

I am not even economics students yet videos are bingeable it's really good

[brainstormingsharing]

Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

[hannahurmoneit]

Professor Gruber is single handily saving my economics exam!!

[louisechristiansen]

Thank you so much for this excellent free education.

[WorthlessWinner]

40:00 i was getting really mad at Jon saying he was just doing positive economics when the choice of "shelter" as good B rather than "drugs" has obvious normative so i'm glad he addresses this, i should've had more faith in him :)

[sauravsatyadarshiray]

Bingeing on Prof. Gruber's lectures.

[AsadAliShah]

I hadn't budget, so I am attending MIT on youtube after graduation in my private Master degree programme