The Marginal Rate of Substitution Is

question 33

Multiple Choice

The marginal rate of substitution is

• A) the rate at which the consumer will give up one good to get an additional unit of another good while remaining on the same indifference curve.
• B) the rate at which utility increases as the consumer increases purchases of a good, holding purchases of the other good constant.
• C) the rate at which a consumer will exchange a good for income holding prices constant.
• D) None of the above answers is correct.