The equation for the marginal rate of substitution of good X for good Y (i.e., MRSXY) is given by: $\Delta U(X,Y)/\Delta X$. $-\Delta Y/\Delta X$. $\Delta Y \times \Delta X$. $-X/Y$.
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It is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. The MRS is calculated as the negative of the slope of the indifference curve. The slope of the indifference curve is Show more…
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