Example Income and Subsitution Effects For Normal and Inferior Goods

Tutorial on understanding the income and substitution effects for normal and inferior goods when the price of a good rises and income and substitution effects for normal and inferior goods with a price decrease.

Playlist on Consumer Theory

Created by David Longstreet, Professor of the Universe, MyBookSucks

[maximkugel]

Its criminal that universities cannot explain concepts as well as what you can find on the internet, FOR FREE. I salute you sir, doing gods work <3

[Wthieme]

I understand income and substitution effects much better after watching your video. Its more informative and easy to follow than either my professor or my textbook. Thank you!

[AK.]

This is the best explanation I have ever seen. Even my prof couldn't explain it this well

[Pandaish]

This 13 minutes is much better than my 2 hours Purdue Econ class. Thank you lol.

[stevenxie]

It's better than sitting in class for 1 hour learning about this! I choose this all day everyday

[sharissasterling]

Thank you so much this was so simple. After a week of classes, and several failed attempts at self learning, I finally understood. I actually want to cry, thank you so much

[jacobzerty]

There is a massive difference between how you explain stuff vs how other youtubers do. You are a life saver!!!!

[ashleyyy]

I just wanna appreciate how organized and clear and neat this explanation is. This is so good. So good. So amazing. So nice. So clear. So nice.

[dylankrejci]

Wow, your simple graphic of sliding the new budget line to be parallel to old indifference curve made way more sense to me than my professor drawing everything out on paper. Thanks for this awesome video!

[streetlife]

you are the best one who can explain without any confusing students

[hodlatodla]

Great video. For those that wish to go into some details:

The intermediate baskets of goods in the video were all constructed with the Hicks method for finding "income-neutral" baskets.

There is another method, the Slutsky method, were the intermediate basket of goods is built with a parallel line to the new budget line that we find (and here's the difference between the 2 methods) by stopping once the parallel line touches the original basket of goods. Our Slutsky budget line will be tangent to a new indifference curve at a point; this point is the Slutsky intermediate basket to be used for the Slutsky decomposition.

[theuniverseeconomics]

Excellent video. I read the chapter from Micro Textbook and your video clarified things for me.

[RuominZ]

Much more clear than my Econ class. Appreciate you for your work.

[ahccah]

You are going to be the reason why I do well on my midterm. Thank you and keep the videos coming.

[realestateWithSusanYeh]

OMG this is by far the most simplist and logical way to explain the income and substitution effects! I been trying to understand how to do it with many videos and they could not explain it! I love this video!! Thank you much!!

[sakshamkatiyar]

With my textbook I use to sleep in these type of here it is made so easy to
Thanks a lot...♥️from India

[deshanibandara]

Thank you very much. This was very helpful for my exams.

[ED-iqmv]

this 13 minutes video made me more understand than my 2 hours boring class thanks, this video is very helpful

[bamschilders]

Slow, but so effective, perfect pace. Thank you very much, it wasn't that clear when I read my book but it is now clear

[arshansoleymanianfar]

Best and only video which thought me everything about Substitution and income effect that I clearly understand. Thanks