Question

The marginal rate of substitution (MRS) tells us ______.

विकल्प

• The price of both goods

• Quantity of one good given up for another

• Amount of money saved

• Satisfaction increase

Answer 1

The marginal rate of substitution (MRS) tells us the quantity of one good given up for another.

Explanation:

MRS shows how much of one good (Y) is given up for an extra unit of another (X), keeping satisfaction unchanged.