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TimestampYour NameWhat are you requesting?Subject or TopicPose your question or describe the micro-lectureAncillary InformationTagsOther
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5/18/2012 9:10:35Lan The ManA response to a microeconomics questionTest SubjectThis is just to see how submitting the form works. http://lanny-on-learn-tech.blogspot.comSupply and Demand
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5/5/2015 19:45:09UtkarshA response to a microeconomics questionThe Shapiro Stiglitz ModelDear Professor,

Thanks fir putting those lessons on youtube!

I saw your video on the Shapiro Stiglitz Model and my doubt is regarding the comparative statistics of Marginal Productivity of Labour with unemployment and wages.

According to my understanding, when unemployment increases, the wages should decrease as firms do not need to offer high wages to prevent workers from shirking, unemployment acts as a disciplining tool.
How does the Marginal Productivity of Labour vary with this? Does is it Increase as well?

Best Regards
Utkarsh Katyaayun		Welfare Economics, e.g., Consumer Surplus
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8/19/2015 13:22:51atiku w.aA response to a microeconomics questiontheory of financewhat is utility theory
state preference theory
portfolio theory
capital asset pricing model
modern portfolio theory
option pricing theory
arbitrage theory
Welfare Economics, e.g., Consumer Surplus
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11/17/2015 3:36:41JosephA response to a microeconomics questionAlmost Ideal Demand ModelDear Sir/Ma,
I am a research student currently conducting a study to determent the price and income elasticity of demand for fuel products in Nigeria, using a Quadratic Almost Ideal Demand System. I am using a cross sectional data (Harmonized National Living Standard Survey, 2009) obtained from the statistical agency in Nigeria.
Currently, I face a challenge estimating the price elasticity of demand for fuel product because prices are constant across household units in the survey period (2009). The survey data contains information on expenditure of various fuel products, but no information is available on the price and quantities of fuel products purchased.
However, I obtained the price of each product in 2009, but it is constant across all households, as a uniform price is applicable in Nigeria. This poses a challenge in estimating the price elasticity of demand for fuel products. To circumvent this problem, some studies have used quantities of each product to divide expenditure of each product. This will create the needed variability in prices. This approach seems impossible to me since my data set has no quantity of fuel products purchased. I humbly write to seek for more clarification on how to obtain variability in prices of each product across various households units in the survey.
Thanks
Joseph O.

Welfare Economics, e.g., Consumer Surplus
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10/2/2016 16:02:07A response to a microeconomics questionLabor-Leisure GraphsHi Prof,

Your video is great help.
Can I get the excel worksheet with graphs to better understand. I wasn't able to find it on any posted links.		https://www.youtube.com/watch?v=bos9X_m0ZasSupply and Demand
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2/8/2019 4:49:33A micro-lecture on a microeconomics topicEconomics of LaborI really appreciate your video. In order to well understand the shapiro stiglitz model can you post some exercices with solution. Many thanksSupply and Demand
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5/18/2012 9:12:51second tryA response to a microeconomics questionwho knowshow does this look Oligopoly/Imperfect Competition
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5/19/2012 7:33:54IPadA response to a microeconomics questionAnother testThis does seem to work.NoneTheory of the Firm - Production and Cost
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7/30/2012 21:33:58Tracey WA micro-lecture on a microeconomics topicExpected Utility HypothesisHi Professor Arvan,

I have viewed some of your video's on YouTube, and was wondering if you provide people with the Excel spreedsheet's? I am particularly interested in having a closer look at the one you used for the Expected Utility Hypothesis video.

Thank you for making your work publicly available. My email address is tracey_west@hotmail.com.

Regards,
Tracey.

Other - use next question to describe.Expected Utility Hypothesis spreedsheet
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9/6/2012 20:06:38MarkA micro-lecture on a microeconomics topicArrow-Pratt approximationFirst off, thanks for your videos. They help.
My question:
Assuming I have 0 means lottery X, (-6 with 1/2 probability and 6 with 1/2 probability) and utility function u(w)=w for w<=10 and u(w)=1/2w+5 for w>=10

Can I apply the Arrow-Pratt approximation of pi(w;X)=1/2 (sigma)^2A(w)?

My hunch is no since A(w)=0 in either case of u(w)...i think?? My question is what does A(w)=0 mean? and why does Arrow-Pratt not work here?

If you need any further clarification of question my email is mbrown149@student.gsu.edu
Other - use next question to describe.Risk Aversion
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10/2/2012 7:12:05EllyA response to a microeconomics questionInferior and Normal goodHi Prof, can i ask you some questions regarding the budget line and indifference curve? When price of X falls, and X is normal, does it mean that normal good will always be on the right side of the budget line that has been separated by a point C? If that is the case, when price of X rises, and X is inferior, does the inferior good always falls on the right of budget line? Because from what i've known, when price of X rises, the budget line will rotate to the left from the original budget line, which means income decreases, so people will buy more inferior good, so inferior good will be on the right. Is that always true? I have also seen a few cases where the inferior good is on the left side even though Price of X rises and i cannot understand. Thank you for taking time to read my enquiriesSupply and Demand
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10/2/2012 21:33:58josephA micro-lecture on a microeconomics topicutility maxzimationsLUCAS has fixed money income, I which spent two goods X and Y. The prices of X and Y are fixed. Lucas,s Utility is based on following utility function. U(x,y)= min(4X,16Y). His income share for X is SX where Sx = PxX/I
and his income share for Y is Sy, where Sy = PyY/I
a: derive his demand function for X and Y.
b; using your answers from a, derive the own-price elasticity of demand, cross-price elasticity of demand and the income elasticity of demand for X and Y.

Thanks your help is appreciated.		Welfare Economics, e.g., Consumer Surplus
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10/19/2012 22:04:02A response to a microeconomics questionIsocost & IsoquantThe owner of a small car-rental service is trying to decide on the appropriate numbers of vehicles and mechanics to use in the business for the current level of operations. He recognizes that his choice represents a trade-off between the two resources. His past experience indicates that this trade-off is as follows:
Vehicles: 100 70 50 40 35 32
Mechanics: 2.5 5 10 15 25 35

a] Assume that annual (leasing) cost per vehicle is $6,000 and the annual salary per mechanic is $25,000. What combination of vehicles and mechanics should he employ? - Already got the answer to which is 70 vehicles and 5 mechanics

b] Illustrate this problem with the use of an isoquant/isocost diagram. Indicate graphically the optimal combination of resources.


Thank you for your help and time		Theory of the Firm - Production and Cost
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11/13/2012 12:23:24serdarA response to a microeconomics questionconsumer surplus For the arguement of "Compansated variation is always bigger than consumer surplus under all price changes", could you please discuss whether it is true or not by drawing the necessary graphs? And i would be pleased if you can give a numerical example to support the arguement (utility function is a Cobb-Douglas utility function). thank you in advanceWelfare Economics, e.g., Consumer Surplus
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11/14/2012 12:54:03NormanA response to a microeconomics questionLeontief PreferencesWe have a Leontief utility function like U(x1,x2)= min (x1,x2).What i want to do is to solve x1 and x2. I have read a lot about the theory but i couldn't find any solved example for Leontief utility maximization. I really will be very pleased if you can give clues for that problem. Thank you for your treasure time.Supply and Demand
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12/12/2012 5:19:11Jonathan A response to a microeconomics questionUtility Functions Hi Professor Arvan,
I just watched your ExpUty video on Youtube -

In reality, how would you go about capturing personal utility functions and preferences? Is there a defacto approach / way or template for doing this for Money, or other goods? I referring to the question construction, interpretation / ranking of the answers and then the maths behind plotting the curve? Or do you know of a spreadsheet / program solution? I take it "Utils" can only ever be ordinal, in reality? I would appreciate any further advice on the subject - Thanks, Jon
n/aOther - use next question to describe.Utility
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12/15/2012 14:09:15Jonathan A response to a microeconomics questionRisk and UncertaintyHi, thanks for that Professor. IMO Utility does describe the feeling, or at least the “something” that kicks-in mentally, particularly with "money" based decisions - when you know (or don’t) you are detaching yourself from the wholly rational course of action (expected return) to take the money on the table offered, or a sum offered with certainty that is just enough of a push - for you to cash in your chips.
Where I’m stuck – is that there is a load of books and research about the abstract pro’s and cons – but I can’t find anything anywhere on the net that explains just how to go about discovering how to assess yourself (e.g. a clear example from the grass up).
Any ideas?
Thanks again,
Jon
n/aOther - use next question to describe.above
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12/16/2012 13:58:20Jonathan A response to a microeconomics questionUtility Thanks Prof, I have ordered the book and will give it a go...thanks for the example. Makes sense. Supply and Demand
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1/3/2013 18:41:53JuanA response to a microeconomics questiongeneralized lerner indexIs there a difference between the Lerner Index and the generalized Lerner Index?

Is this the formula for the generalized Lerner index: (P-C)/P = s/e (where P=price, C=marginal cost, s=leader's market share, and e= elasticity of demand)?

I though that the generalized lerner index formula was (P-C)/P = s/[e+(1-s)ers] (where P=price, C=marginal cost, s=leader's market share, e= elasticity of demand, and ers=rivals' supply elasticity).

Which is correct?

Can you please email me at juanreyes09@gmail.com when you are able to post an answer. Thanks so much.

Thanks so much!		http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1966538Monopoly
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4/17/2013 23:16:11JohnA micro-lecture on a microeconomics topicGARP and WARPI have two related questions on Choice.

I know that we can satisfy WARP but have nevertheless a violation of GARP. My question is if we can have a situation where WARP is violated, but GARP is satisfied?

Secondly, from the definition of GARP it is always spoken of a bundle being revealed preferred to another bundle through a chain or "sequence" of revealed preferences. My question is, if this defined "sequence" can consist of only two observations, so that we have actually a direct revealed preference after all? In other words, does "revealed preferred" include the case of "direct revealed preferred"?		Consumer Theory
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4/18/2013 13:07:19JohnA response to a microeconomics questionCheers!Dear Professor! Great answer! Concise and very instructive and helps me to get more deeply into the meaning of all this.
Consumer Theory
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4/30/2013 11:21:41Joe R.A response to a microeconomics questionPure Competition in short runWorking on aquestion with a full chart to reference but am lost where to get the date for the answer. The question ask about the product price of $56, will this firm produce in the short run.?Competitive Markets
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7/8/2013 1:43:01judyA response to a microeconomics questionconsumer buyingusing well labele diagrams show the total effect,income effect and substitution effect due to a price fall of good x1 assuming that the consumer baskets has only good x1 and x2. The price of good x2 remains constant.Consumer Theory
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9/5/2013 4:54:20Vu NguyenA response to a microeconomics questionUnit tax is levied directly on consumersDear professor Arvan
i have a question
Why when a unit tax is levied directly on consumers, this make the demand curve shifts downwards? and what could be the causes of this shift ?

Thank you very much		Supply and Demand
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3/11/2014 10:35:18M. RaheelA response to a microeconomics questionCompensating Variation and Almost Ideal Demand SystemHi Respected Sir,
I am writing a report on Compensating Variation (CV) in case of more than two goods say 8 goods. My question is how can we estimate it in case of more than 2 goods.
Another Question is How can we write the equations for 8 commodities in Almost Ideal Demand System (AIDS) to calculate Own , Cross and Expenditure Elasticities of demand.
In which software both of the methods can be calculated?
I am waiting for your reply.
Thanks in anticipation		http://http://wilcoxen.maxwell.insightworks.com/pages/307.htmlWelfare Economics, e.g., Consumer Surplus
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4/25/2014 23:56:17DannyA response to a microeconomics questionTaxHi Professor,

In regards to taxes, I have seen that in your video, that you name the vertical axes either the selling price or the buyer price and am I correct in saying that depending on whether the tax is levied on buyers or sellers is what determines what you name your vertical axes and thus determines which curve you shift. I have never seen it been done this way. I've always seen the vertical axes to just be denoted price.

Since the burden of the tax is shared (doesn't have to be equally shared of course right) between buyers and sellers, does it really matter what curve you shift (demand or supply) when either the buyer pays the tax or the seller pays the tax? Is it correct to shift either one of the curves?

The way my lecturer has demonstrated it is to draw a tax wedge between the supply and demand curves,however I get confused to how this is used or can be used to answer questions. Because there will be two intersections given a particular quantity with both the supply and demand curve, so how do you know which one to look at?

My lecturer has said he does not prefer shifting the supply or demand curves because that is not actually what is happening, it is just 'construction lines' to depict the tax levy and drawing a tax wedge is much more simpler and achieves the same thing, however I have difficulty grasping the tax concept.

Furthermore, my lecturer and other online videos suggest that the price to the buyer is equal to the price to the producer PLUS the tax? (Pb = Ps + Tax)

However isn't that only correct if we are assuming that the consumer PAYS the tax? What if the producer pays the tax, does that mean this equation (Pb = Ps + Tax) is invalid? And rather it should be the price to the producer equals the price to the consumer plus the tax?

Or because the tax burden is shared between buyers and sellers, that it doesn't really matter? So in these cases, how do you know which curve to be shifting or to be looking at when determining the new tax equilibrium?

I hope that makes sense and would appreciate some help.

Thank you so much,
Other - use next question to describe.taxes
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4/26/2014 2:43:36DannyA response to a microeconomics questionComparative Advantage / Opportunity CostsHi professor,

For example, given two countries and two outputs such as trains and planes, when determining which has the comparative advantage, do you compare within the country itself or between countries? That is, should you be comparing whether producing one particular good has a lower opportunity cost than the other in that same country? Or comparing whether producing one particular good has a lower opportunity cost in another country relative to your own country?

In other words, are the comparisons of opportunity costs performed horizontally or vertically? I am confused.

For an example, please see:
https://www.youtube.com/watch?v=z9SAzSm24qg&index=7&list=PLA46DB4506062B62B
At 2:00mins, the instructor suggests comparing between countries, however, isn't comparative advantage and opportunity costs compared within the same country? Or is it because the introduction of trade changes it around? Not really sure.

Thanks for any help		Competitive Markets
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4/26/2014 9:17:52DannyA response to a microeconomics questionExternalitiesHi Professor Arvan,

Can externalities be either on the production or consumption side? That is, for example, a negative externality, does it matter whether you shift the supply curve leftward/inward or the demand curve leftward/inward?

For example, when dealing with a good such as for example, a cologne that is extremely repugnant, is the negative externality related to the consumption or production of the good? It could be argued from both perspectives, right?

Hence how would you know which curve to shift in order to find the socially optimal quantity? (If you shift either, they do however end up at the same socially optimal quantity, however the prices differ (if you shift the supply curve inward, the new equilibrium would be higher, and if you shift the demand curve inward, price would be lower)

I would appreciate your comments on this.

Thank you.

Regards,
Danny.		Externalities
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6/6/2014 10:23:32JamesA response to a microeconomics questionUtility/Risk Aversion in selection of health planI saw your Youtube video on Demand for Insurance and it led me to here. With that said, there are many articles written about health coverage choice e.g.
National Institute of Health: http://economics.mit.edu/files/7870

Beginning on page 5 and,

Urban institute: http://www.urban.org/UploadedPDF/412471-Health-Insurance-Policy-Simulation-Model-Methodology-Documentation.pdf

Beginning on page 12.

RAND Compare has an overly complex model, but for discussion purposes, will use NIH's example.

NIH is taking into consideration (i) Risk aversion utility maximization (ii) expected healthcare needs (iii) variance in OOP cost from a set of health plans with consideration of variance in premiums for the health plans.

Is there a model or someone who can help me create a supplemental excel model that reflects the NIH's Model? In this model, they are using limited data such as Age, Income, and gender to impute a cost (lognorm function?)

There is so much written about this subject, however, I am having a very hard time modeling what is being discussed. If you could point me in a direction to someone who can help or may be interested in taking this on as a project, I would appreciate your feedback.		http://economics.mit.edu/files/7870Consumer Theory
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