Economics · Consumer Behaviour
When a consumer increases the units of X-commodity by giving up some units of Y-commodity to attain the same level of satisfaction, the Marginal Rate of Substitution (MRSxy) is calculated as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Change in Y-commodityChange in X-commodity✓
- 2Change in X-commodityChange in Y-commodity
- 3Change in Y-commodityMarginal utility of X-commodity
- 4Change in X-commodityMarginal utility of Y-commodity
Correct answer
Change in Y-commodityChange in X-commodity
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