Exhibit 6-23
-In Exhibit 6-23, the marginal rate of substitution of food for clothing between points a and b equals

Question

Exhibit 6-23 
-In Exhibit 6-23, the marginal rate of substitution of food for clothing between points a and b equals

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. It is calculated as the change in the quantity of one good divided by the change in the quantity of the other good. Without specific quantities from Exhibit 6-23, the choice C (3) is assumed to be the correct MRS value between points a and b.

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