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

Question

Quizplus · Accepted Answer

The concept described in the question is the marginal rate of substitution (MRS), which measures the rate at which a consumer is willing to trade one good for another while keeping the level of utility constant. The other answer choices are not related to this concept.

The Rate at Which a Consumer Is Willing to Exchange