The marginal rate of substitution is the maximum number of units of good Y that the consumer would willingly sacrifice for an extra unit of good X while keeping the satisfaction level unchanged. change in total utility when one more unit of a good is consumed. slope of the utility function. All of the above are correct.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The marginal rate of substitution is the
maximum number of units of
good Y that the consumer would
willingly sacrifice for an extra
unit of good X while keeping the
satisfaction level unchanged.
change in total utility when one
more unit of a good is
consumed.
slope of the utility function.
All of the above are correct.
Transcribed Image Text:The marginal rate of substitution is the maximum number of units of good Y that the consumer would willingly sacrifice for an extra unit of good X while keeping the satisfaction level unchanged. change in total utility when one more unit of a good is consumed. slope of the utility function. All of the above are correct.
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