Which term refers to the rate at which a consumer is willing to exchange one good for another,maintaining a constant level of satisfaction
A)the relative exchange ratio
B)the value of marginal product
C)the marginal rate of substitution
D)the relative price ratio

Question

Quizplus · Accepted Answer

The term that refers to the rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is the marginal rate of substitution (MRS). The MRS measures the amount of one good that a consumer is willing to sacrifice to obtain an additional unit of another good, while still achieving the same level of utility.

Which Term Refers to the Rate at Which a Consumer