Practice - Marginal Rate of Substitution (MRS)
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Practice Questions
Test your understanding with targeted questions
What does MRS stand for?
💡 Hint: Think about what concept relates to the substitution of goods.
What does an indifference curve represent?
💡 Hint: Consider the word 'indifferent.'
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does MRS measure?
💡 Hint: Think about the substitution in consumer goods.
True or False: MRS increases as consumption of a good increases.
💡 Hint: Consider how desires for goods change.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A consumer has an MRS of 4:3 between apples and oranges. If the price of apples is $2 and oranges are $3, determine if the consumer is maximizing utility.
💡 Hint: Consider how the ratio aligns with price relationships.
Given a utility function U(X, Y) = X^0.5 * Y^0.5, find MRS and explain how it changes with varying X and Y.
💡 Hint: Calculate marginal utilities first!
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Reference links
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