Exhibit 6-23
-In Exhibit 6-23, the marginal rate of substitution of clothing for food between points a and b equals
A) 1
B) 2
C) 1/3
D) 5/6
E) 100

Question

Exhibit 6-23 
-In Exhibit 6-23, the marginal rate of substitution of clothing for food between points a and b equals
A) 1 
B) 2 
C) 1/3 
D) 5/6 
E) 100

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to trade one good for another while keeping their level of satisfaction constant. In this case, the MRS of clothing for food is the amount of food that a consumer is willing to give up in order to get one more unit of clothing. Between points a and b, the MRS is 1/3, which means that the consumer is willing to give up 1/3 of a unit of food in order to get one more unit of clothing.

Exhibit 6-23 -In Exhibit 6-23, the Marginal Rate of Substitution of Clothing