The marginal rate of substitution of one good for another is measured by moving
A) along an indifference curve.
B) among different indifference curves.
C) along a budget line.
D) among different budget lines.
E) along a demand curve.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) measures the rate at which a consumer is willing to trade one good for another while remaining indifferent, which can be observed by moving along an indifference curve.

The Marginal Rate of Substitution of One Good for Another