At a particular point on the indifference map, the ratio at which a consumer would be willing to exchange one good for another is the marginal rate of substitution.

Question

Quizplus · Accepted Answer

Marginal rate of substitution (MRS) represents the amount of one good a consumer is willing to give up in exchange for one unit of another good while keeping the same level of utility. Therefore, at any point on the indifference map, the MRS represents the rate at which a consumer is willing to exchange one good for another.

At a Particular Point on the Indifference Map, the Ratio