Marginal rate of substitution
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Marginal rate of substitution (MRS) is the rate at which a consumer is willing to give up some of one good in exchange for more of another; the slope of the indifference curve.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Marginal rate of substitution (MRS). The rate at which a consumer is willing to give up some of one good in exchange for more of another; the slope of the indifference curve.
