Mathematically the marginal rate of substitution is
A) always a negative number.
B) always a positive number.
C) is equal to 1.
D) sometimes a positive and sometimes a negative number.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is always a negative number because it reflects the rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility. This implies a trade-off or substitution effect, where the consumption of one good decreases as the consumption of another increases, hence the negative sign.

Mathematically the Marginal Rate of Substitution Is