marginal rate of substitution
Theindifferencecurvesaredownwardslopingin(t,y)space,soaswemovetotherightalonganindifferencecurve,trisesandyfalls,andthusy/tfalls.,Ineconomics,themarginalrateofsubstitution(MRS)istherateatwhichaconsumercangiveupsomeamountofonegoodinexchangeforanot...
MRS in Economics
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Themarginalrateofsubstitution(MRS)isthewillingnessofaconsumertoreplaceonegoodforanothergood,aslongasthenewgoodisequallysatisfying.
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