Microeconomics - 1: Finding Demand

Explore how to maximize a consumer's utility under a budget constraint with perfect substitutes, using budget lines, indifference curves, and non-negative constraints to identify the optimal bundle.

Determine the demand for perfect complements by locating the optimal bundle via the budget line and indifference curves, solving for x and y (e.g., x=3, y=1.5).

Solve the consumer’s maximization under a budget constraint in a Cobb-Douglas demand framework using the budget line x+y=24 and the condition that the indifference-slope equals the budget slope.

Explore how to plot the budget line, analyze indifference curves, and identify the utility-maximizing consumption bundle under a budget constraint.

Derive the demand function by maximizing utility under the budget constraint; the optimum lies on the budget line and spends all income when more is better.

Derive the Cobb-Douglas demand by maximizing x y subject to p_x x + p_y y ≤ m, equating marginal utility to price ratio, yielding half income on each good.

this lecture derives the demand function for x and y when utility is minimum, analyzing three cases based on by relative to one, using budget constraints and a graphical approach.

Frame expenditure minimization to achieve a fixed utility with goods x and y. The optimal point equates the slope of the expenditure iso-curve to the slope of the indifference curve.

Using two graphical examples, this lecture shows how to derive Hicksian demand by minimizing expenditure subject to a utility constraint, tracing indifference curves and iso-expenditure lines to the optimal point.

This lecture derives the Cobb-Douglas Hicksian demand by solving the expenditure minimization problem for a fixed utility u=xy, showing tangent condition with the indifference curve to find x and y.

Derive Hicksian demand for perfect substitutes by solving a two-good expenditure minimization under a utility constraint, revealing cases for x-only, y-only, or any mix along the optimal line.

Explore how price changes trigger substitution and income effects that alter demand, and learn how to decompose the change using two approaches discussed in the literature.

Apply the Hicksian approach to split a price decrease into substitution and income effects, solving expenditure minimization for a fixed utility to derive compensated (Hicksian) demand.

Learn how the Slutsky approach decomposes the total price-change effect into substitution and income effects by comparing the original choice with a new price and adjusted income.