The Marginal Rate of Substitution Measures the Distance Between One

question 2

True/False

The marginal rate of substitution measures the distance between one indifference curve and the next one.

---

Definitions:

Demand

The desire of purchasers, consumers, clients, or agents for a particular commodity, service, or other resource, combined with their capacity to purchase it.

Vertical Straight Line

In a graph, a line that runs straight up and down, indicating that the variable on the x-axis remains constant.

Quantity Supplied

The quantity of a product or service that sellers are prepared and capable of offering for sale at a certain price.

Production Costs

The total expense incurred in manufacturing goods, including raw materials, labor, and overhead.