Use the following to answer questions 21-22:
Figure 4.9
-(Figure 4.9) What is the marginal rate of substitution between points A and B?
A) 4
B) 6
C) 2
D) 8

Question

Use the following to answer questions 21-22:
Figure 4.9 
-(Figure 4.9) What is the marginal rate of substitution between points A and B?
A) 4 
B) 6 
C) 2 
D) 8

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. Without the specific details of Figure 4.9, the choice of 2 suggests that the consumer is willing to give up 2 units of one good to gain an additional unit of another good, maintaining the same level of satisfaction.

Use the Following to Answer Questions 21-22