Question

calculation of marginal rate of substitution

Answer 1

For example, if the MRSxy = 2, the consumer will give up 2 units of Y to obtain 1 additional unit of X. As one moves down a (standardly convex) indifference curve, the marginal rate of substitution decreases (as measured by the absolute value of the slope of the indifference curve, which decreases).

Answer 2

Answer:

MRS = NO. of sacrificing units/ no. of units gained.