Intuitively,the marginal rate of substitution for X with Y tells us:
A) how much Y a consumer needs to compensate them for a one-unit decrease in X.
B) how much X must be taken away from a consumer to compensate them for a one-unit increase in Y.
C) how much X a consumer needs to compensate them for a one-unit decrease in Y.
D) how much more Y the consumer will buy if the price of Y increases by $1.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) for X with Y indicates how much of good Y a consumer is willing to give up to obtain an additional unit of good X, maintaining the same level of utility.

Intuitively,the Marginal Rate of Substitution for X with Y Tells