Question

What does the Marginal Rate of Substitution (MRS) represent in consumer choice?

विकल्प

• Ability to buy more goods

• Willingness to give up some of one good for another, keeping satisfaction same

• The total amount of goods consumed

• Increase in income of the consumer

Answer 1

Willingness to give up some of one good for another, keeping satisfaction same

Explanation:

MRS explains how much a consumer is willing to give up of one good to get more of another, without changing total satisfaction.