IC 2 - Indifference Curve: Diminishing Marginal Rate of Substitution - MRS | Slope
Автор: Prof. Nisha Malhotra
Загружено: 2021-02-07
Просмотров: 5575
Описание:
The marginal rate of substitution (MRS) measures the rate at which the consumer is willing to trade or give up good [y] to get one extra unit of good [x] while staying at the same level of utility/happiness or welfare, in other words, the consumer remains on the same indifference curve.
The magnitude of the slope measures the marginal rate of substitution - So, MRS is the slope of the indifference curve at a point on the indifference curve.
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