The marginal rate of substitution is equal to the _______.
A) marginal cost of each good
B) relative price of the two goods
C) magnitude of the slope of the indifference curve
D) inverse of the slope of the budget line

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility, and it is represented by the magnitude of the slope of the indifference curve.

The Marginal Rate of Substitution Is Equal to the _______