The marginal rate of substitution is measured along
A) the demand curve.
B) the total utility curve.
C) a given indifference curve.
D) a given budget line.

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 at the same level of satisfaction. It is measured along a given indifference curve since it represents the slope of the curve at any point. Therefore, the correct choice is C. The other options do not accurately represent the concept of MRS.

The Marginal Rate of Substitution Is Measured Along