Question

In the context of Indifference Curve Analysis, MRS stands for _____ .

• A. Marginal Rate of Substitution
• B. Marginal Rate of Satisfaction
• C. Marginal Return of Substitution
• D. Marginal Return of Satisfaction

Answer 1

The correct option is A Marginal Rate of Substitution

In economics, the marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to consume in relation to another good, as long as the new good is equally satisfying. It's used in indifference theory to analyze consumer behavior