The marginal rate of substitution measures
A) the impact of product substitution.
B) the changes in marginal utility along the indifference curve.
C) the consumer's willingness to substitute one product for another so that total utility will remain unchanged.
D) the consumer's willingness to substitute one product for another so that marginal utility will remain unchanged.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) measures the amount of one good a consumer is willing to give up in order to obtain one more unit of another good, while still maintaining the same level of utility. In other words, it measures the consumer's willingness to substitute one product for another so that total utility will remain unchanged.

The Marginal Rate of Substitution Measures