### 9c. Quasilinear Utility and Demand

In this video, I introduce quasilinear utility. I show how to compute marginal rate of substitution for quasilinear utility, as well as the result that the indifference curves are parallel. I also outline how to solve for the demand curves when utility is quasilinear. I finish the video with an example of quasilinear utility, where utility has the form u(x,y) = y + log(x). The example is simple to compute and this simplicity demonstrates why we see quasilinear utility show up so frequently. For a list of videos and links to these videos (organized by topic), check out the Intromediate Microeconomics video web page: http://blog.thisyoungeconomist.com/p/learn-microeconomics.html This video uses calculus and is part of my effort to supplement my non-calculus text "Intromediate Microeconomics" with calculus-based examples and techniques. This book is available for purchase ($20 for an electronic copy) at my storefront: http://www.lulu.com/cookson

Length:
05:28