Question

The MRS. Or “Marginal rate of substitution” is the slope of the indifference curve. True or False

Answer 1

Solution:- True

Explaination:-Given statement is true,The MRS. Or “Marginal rate of substitution” is the slope of the indifference curve why beacuse the marginal rate of substitution is the amount of a good that a consumer is willing to give up for another good, as long as the new good is equally satisfying. It's used in indifference theory to analyze consumer behavior. The marginal rate of substitution (MRS) is calculated between two goods placed on an indifference curve, displaying a frontier of equal utility for each combination of "good A" and "good B". The marginal rate of substitution is always changing for a given point on the curve, and mathematically represents the slope of the curve at that point.