The marginal rate of substitution is the
A) quantity of a good a consumer receives for $1 payment
B) income a consumer gives up to acquire one unit of the good
C) ratio of the prices of two goods
D) rate at which the consumer is willing to trade one good for another good
E) relative quantity of a good that two consumers trade

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility, reflecting their preferences for different combinations of goods.

The Marginal Rate of Substitution Is the