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Theory Of Consumer Behaviour
Question
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What is meant by marginal rate of substitution (MRS)?

Answer

MRS is the amount of good-2 that the consumer is willing to give up for getting an extra unit of good-1 without affecting total utility.

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Some More Questions From Theory Of Consumer Behaviour Chapter

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

 Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

Why does demand curve slope downwards?

Differentiate between substitute and complementary goods.

What is meant by one good being substitute of other?

What is meant by one good being complementary to another.