The rate at which the consumer is prepared to exchange-good x and y is:

CA Foundation · Business Economics · MTP · September 2025
The rate at which the consumer is prepared to exchange-good x and y is:
(A) A. Marginal rate of Substitution
(B) B. Elasticity of Substitution
(C) C. Diminishing Marginal Utility
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Marginal rate of Substitution

Topics: Theory of Demand and Supply

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