A consumer's willingness to trade one good for another can be expressed by the consumer's marginal rate of substitution. True False

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Business

Kirsten Reynolds

4 August, 15:23

A consumer's willingness to trade one good for another can be expressed by the consumer's marginal rate of substitution. True False

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Righty · Answer 1

TRUE

Explanation:

A consumer's marginal rate of substitution (MRS) can be defined as the number or amount of goods that he/she is willing to trade for another in other to gain maximum satisfaction of the goods.