How can we define the marginal rate of substitution on the graph of consumer choice model
A)It is the slope of a budget constraint.
B)It is the ratio between the slope of a budget constraint and an indifference curve.
C)It is the slope of an indifference curve.
D)It is the point at which the budget constraint is tangent to the indifference curve.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is defined as the slope of an indifference curve, representing the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

How Can We Define the Marginal Rate of Substitution on the Graph