5 Solving for perfect Substitutes

Exploring consumer theory, this video discusses 'perfect substitutes' in utility maximization under a budget constraint. Beginning with a simple example of goods x and y, the tutor demonstrates two methods to solve for optimal consumption: a non-graphical approach using corner solutions, and a graphical method employing indifference curves along a 45-degree line. The tutorial then generalizes these concepts, outlining how to determine optimal consumption given a general utility function. Subscribe to @AxiomTutoring for more comprehensive economic theory explanations.