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Consumer preferences - well-behaved + special cases
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The video starts with describing the properties of well-behaved preferences and how they translate into the shape of indifference curves:
- positive marginal utilities = "more is better" = "non-satiation" (= "monotonicity)
- diminishing MRS (= convexity).
Then a number of exceptions and special cases are described:
- 1:18 "neutral" goods: goods with zero marginal utility
- 2:32 satiation (or "non-monotonicity"): goods for which marginal utility becomes zero or negative past a certain point
- 5:23 perfect substitutes
- 6:45 perfect complements
- 8:54 increasing MRS ("non-convexity", or preference for extremes)
- 11:25 another "neutral" good
- 12:45 an economic "bad": marginal utility is always negative
- positive marginal utilities = "more is better" = "non-satiation" (= "monotonicity)
- diminishing MRS (= convexity).
Then a number of exceptions and special cases are described:
- 1:18 "neutral" goods: goods with zero marginal utility
- 2:32 satiation (or "non-monotonicity"): goods for which marginal utility becomes zero or negative past a certain point
- 5:23 perfect substitutes
- 6:45 perfect complements
- 8:54 increasing MRS ("non-convexity", or preference for extremes)
- 11:25 another "neutral" good
- 12:45 an economic "bad": marginal utility is always negative
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