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    Question

    The marginal rate of substitution (MRS)

    represents:
    A The rate at which income is substituted for consumption Correct Answer Incorrect Answer
    B The slope of the budget line Correct Answer Incorrect Answer
    C The rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility Correct Answer Incorrect Answer
    D The total utility derived from consuming all goods Correct Answer Incorrect Answer

    Solution

    MRS is the amount of one good a consumer is willing to give up to get an additional unit of another good, keeping utility constant. It is the slope of an indifference curve.

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