The marginal rate of substitution assumes that:
A) prices remain unchanged.
B) money income remains unchanged.
C) total utility remains unchanged.
D) the quantities of both goods remain unchanged.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) assumes that total utility remains unchanged as a consumer substitutes one good for another along an indifference curve.

The Marginal Rate of Substitution Assumes That