The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve:
A) a higher level of satisfaction.
B) a lower level of satisfaction.
C) the same level of satisfaction.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to give up one good in exchange for another while maintaining the same level of satisfaction or utility.

The Marginal Rate of Substitution (MRS) Determines the Rate at Which