Where does a buyer's demand curve come from? A rational buyer wants to get as much "bang per buck" from their consumption as possible. In economics, that's called marginal utility per dollar spent. When the price of a good decreases, the "bang per buck" on that good increases, which incentivizes consuming more of it. In this video, we derive the individual's demand curve for a good by tweaking the marginal utility per dollar spent. Created by Sal Khan.

Presumably you've already made plans for surviving a zombie apocalypse, but have you thought through the important economic factors that might make the difference between surviving and losing your brain to one of the walking dead? In this video, Professor Anthony Davies of Duquesne University discusses how a zombie apocalypse would affect the price of gasoline, the supply of money, and the economy as a whole.

Introduction to Energy and Earth Sciences is an introduction to microeconomic fundamentals with a focus on the applications of economics to energy and environmental markets. We will introduce the economic method of analysis to the environmental and resource questions facing society. We will learn about the market forces, supply and demand and how they are formed from two concepts of law of Diminishing Returns and Diminishing Marginal Utility. We extend our knowledge by exploring factors such as market dynamics and market equilibrium, government intervention and market power. At the end we will apply these concepts to real life examples and address Climate Change and Carbon Policy, Resource Scarcity and Energy Security, and Changes in the Electricity Business.

If you have $5 to spend on two goods, how do you decide to spend it? In this video, we use the concepts of marginal utility and marginal benefit to decide how best to allocate a budget. Created by Sal Khan.

In this video, walk through the solution to a question on the 2012 AP Microeconomics exam applying the concepts of marginal utility and utility maximization.

14.01 Principles of Microeconomics is an introductory undergraduate course that teaches the fundamentals of microeconomics. This course introduces microeconomic concepts and analysis, supply and demand analysis, theories of the firm and individual behavior, competition and monopoly, and welfare economics. Students will also be introduced to the use of microeconomic applications to address problems in current economic policy throughout the semester.
This course is a core subject in MIT's undergraduate Energy Studies Minor. This Institute-wide program complements the deep expertise obtained in any major with a broad understanding of the interlinked realms of science, technology, and social sciences as they relate to energy and associated environmental challenges.
Course Format
This course has been designed for independent study. It includes all of the materials you will need to understand the concepts covered in this subject. The materials in this course include:

A complete set of Lecture Videos by Prof. Jon Gruber.
Reading Assignments in your choice of two textbooks – one of which is a free online edition - as preparation for the lectures.
Multiple-choice Quizzes to assess your understanding of the key concepts in each session.
Problem Sets with solution keys to test your ability to apply to concepts covered in lecture, and Problem Solving Videos to provide step-by-step instruction through several problem set solutions.
A collection of links For Further Study to provide supplemental online content.
A full set of Exams, including review material and practice exams to help you prepare.

In the video we explore why the marginal utility per dollar spent should be equal for the last increment of either good purchased. Created by Sal Khan.

In the video we explore why the marginal utility per dollar spent should be equal for the last increment of either good purchased. Created by Sal Khan.

This video shows how we can visualize marginal utility (MU) and total utility (TU) functions graphically.