Marginal Rate of Substitution indicates

slope of production possibility curve

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slope of indifference curve

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slope of budget line

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slope of income line

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Solution

The correct option is B slope of indifference curve
MRS is the slope of IC. It is the amount of Good-Y which a consumer is willing to give up for one unit more of Good-X. It is expressed as ‘Change in Y/Change in X’.

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Similar questions

Explain the Statement.

MRS (marginal rate of substitution) along an indifference curve tends to diminish.

Explain the concept of 'Marginal Rate of Substitution' with the help of a numerical example. Describe its behaviour along an indifference curve.

Q. Explain the concept of 'Marginal Rate of Substitution' with the help of a numerical example. Also explain its behaviour along an indifference curve.

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Q. Marginal rate of substitution indicate _______.

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Marginal Rate of Substitution indicates

The correct option is B slope of indifference curveMRS is the slope of IC. It is the amount of Good-Y which a consumer is willing to give up for one unit more of Good-X. It is expressed as ‘Change in Y/Change in X’.

The correct option is B slope of indifference curve
MRS is the slope of IC. It is the amount of Good-Y which a consumer is willing to give up for one unit more of Good-X. It is expressed as ‘Change in Y/Change in X’.