what's up econ John here in this video we're gonna introduce the concept of pixie in demand let's go what are hick seein demands know whenever we're asked to find the demand for a good we're looking for the quantity demanded by the consumer or a function we can use to obtain that amount a hick see and demand which is also called the compensated demand is a demand that is determined by the price of the good in question price of another good and a fixed level of utility it tells us the cost minimizing amount of a good that the consumer needs in order to maintain a fixed level of utility a hick see demand is also called a compensated demand because it tells us how much we would have to go and compensate the consumer if price changed to maintain the same level of utility the problem we are solving with regards to hexene demands is minimize our budget equation subject to our utility function at a fixed level of utility find your hick see and demands step number one we define your problem as minimizing your budget constraints subject to your utility function out of fixed level of the utility your Lagrangian is L is equal to our budget equation plus or minus lambda times our fixed a level of utility U bar minus our utility function step number two we go and take our four sterile partials of our Lagrangian and set them equal to 0 and step number three we solve for lambda x1 and x2 x1 x2 are your Hicks e'en demands and we use lambda here to go and find them hope this helps