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snowicefox17 snowicefox17
wrote...
Posts: 387
A week ago

Question 1.

The slope of the indifference curve is referred to as



the marginal rate of consumption.



the marginal rate of substitution.



the marginal tradeoff rate.



the price ratio.



Question 2.

What does the marginal rate of substitution measure?



It measures the rate at which a consumer must give up one good to purchase another good.



It measures the change in utility from consuming one additional unit of a good.



It measures the rate at which a consumer is willing to trade off one product for another while keeping utility constant.



It measures the rate at which a consumer will substitute one good for another when the price of one good changes.

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Edition: 1st
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kwashington67kwashington67
wrote...
Posts: 313
A week ago
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Answer 1

the marginal rate of substitution.



Answer 2

It measures the rate at which a consumer is willing to trade off one product for another while keeping utility constant.

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