MIT 14.01 Principles of Microeconomics, Fall 2018 - 2. Preferences and Utility Functions

MIT 14.01 Principles of Microeconomics, Fall 2018 Instructor: Prof. Jonathan Gruber * View newer version of the course: https://ocw.mit.edu/14-01F23 * YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP62oJSoqb4Rf-vZMGUBe59G- This video focuses on the demand curve, derived from how consumers make choices, and the supply curve, which is how firms make production decisions. Chapters 00:00 Title slate 00:11 Lecture Start 01:13 Model Assumptions 05:54 Indifference Curves 09:23 Four Properties 13:27 Real Example ( job search ) 15:28 Utility Functions 18:31 Margin Utility 24:49 Marginal Rate of Substitution 30:13 Why graph's not concave 32:37 (Q) Addictives & MRS 34:31 Price of Different Sizes of Goods License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.