Question

Anyone please explain me the concept of MRS( MARGINAL RATE OF SUBSITUTION ).. And also interpretation of Rising, Falling, and Constant MRS..​

Answer 1

Answer:

it s a very easy concept try to understand

law of diminishing marginal rate of substitution is anlysed from indifference curve and that indifference curve shows the combination of different product having utility . utility means the desire or satisfaction get from that product or commodity

now understand mrs

it signifies the increase or decrease of product due to utility level if you prefer kurkure more than lays after some time your utility may be change and you are preferring lays more than the kur kure

in this case kindly understand that u change your product due to utility you are preferring lays at that time the mrs is increasing and the mrs of kurkure is descrasing

hope you understand