The rate of exchange that would just maintain the consumer's original utility is called the marginal rate of
A) multiplication
B) additivity
C) substitution

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to trade one good for another while still maintaining the same level of utility. It represents the slope of an indifference curve at a given point. Therefore, the correct option is C - substitution.

The Rate of Exchange That Would Just Maintain the Consumer's