The change in the consumption of one good that just offsets a one-unit change in the consumption of another good is the
A) marginal utility.
B) marginal rate of consumption.
C) marginal rate of substitution.
D) marginal rate of satisfaction.

Question

Quizplus · Accepted Answer

The change in the consumption of one good that just offsets a one-unit change in the consumption of another good is known as the marginal rate of substitution (MRS) in microeconomics. It measures the rate at which a consumer is willing to give up one good in exchange for the other, while keeping the utility level constant. Marginal utility (A) is the additional satisfaction received from consuming one more unit of a good, and it is not directly related to the consumption of another good. Marginal rate of consumption (B) is not a defined term in economics. Marginal rate of satisfaction (D) is a term that is sometimes used interchangeably with marginal utility, but it does not specifically refer to the trade-off between two goods.

The Change in the Consumption of One Good That Just