The is the maximum amount of good X a consumer would be willing to give up in order to obtain an additional unit of good Y:
A)marginal rate of substitution.
B)marginal rate of utility exchange.
C)average rate of substitution.
D)marginal rate of exchange.

Question

Quizplus · Accepted Answer

The maximum amount of good X a consumer would be willing to give up in order to obtain an additional unit of good Y is known as the marginal rate of substitution (MRS). This measures the consumer's willingness to substitute one good for another and is represented by the slope of the indifference curve at any given point. Therefore, option A is the best choice.

The Is the Maximum Amount of Good X a Consumer