how to calculate marginal substitution rate in elasticity?
KarD1
10 Apr, 2026
To get notifications when anyone posts a new answer to this question
Answers (1)
Post your comment
Pdav80119
3 months ago
Marginal Rate of Substitution (MRS) in economics.
MRS = ΔY / ΔX (along an indifference curve)
Or using calculus:
MRS = dY/dX = MUx / MUy
MU = marginal utility of goods X and Y.