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Answer to Question #344151 in Macroeconomics for Rajvi
Question #344151
What is marginal rate of substitution?
Expert's answer
The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to consume compared to another good, as long as the new good is equally satisfying. MRS is used in indifference theory to analyze consumer behavior.
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#340153 on Dec 2023
#340153 on Dec 2023
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