The marginal rate of substitution shows how a consumer can substitute between two goods to:
A)maintain the same income.
B)maintain the same level of total utility.
C)maintain the same marginal
D)utility.increase total utility.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) shows the rate at which a consumer is willing to exchange one good for another while maintaining the same level of total utility. Therefore, option B is the correct answer as the MRS allows the consumer to maintain the same level of total utility while making trade-offs between the two goods.

The Marginal Rate of Substitution Shows How a Consumer Can