The rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is called the
A)relative expenditure ratio.
B)value of marginal product.
C)marginal rate of substitution.
D)relative price ratio.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction, reflecting the consumer's willingness to substitute between goods.

The Rate at Which a Consumer Is Willing to Exchange