The marginal rate of substitution is
A) the rate at which utility increases as the consumer increases purchases of a good, holding purchases of the other good constant.
B) the rate at which a consumer will exchange a good for income holding prices constant.
C) the rate at which the consumer will give up one good to get an additional unit of another good while remaining on the same indifference curve.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is indeed the rate at which a consumer is willing to give up some amount of one good in exchange for another good while keeping their level of utility constant, which means staying on the same indifference curve.

The Marginal Rate of Substitution Is