Question

What is MRS and why is it continuously diminishes?​

Answer 1

Explanation:

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MRS decline continuously in IC curve because of law of diminishing marginal utility. It means when the consumer consumes more and more of good 1 then his marginal utility from another good keeps on declining and he is willing to give up less and less of good 2 for each good 1.

Diminishing MRS suggests that the consumer sacrifices less and less quantity of Good-Y for every additional unit of Good-X. Why does he do it? It is because the rising consumption of Good-X leads to a fall in its MU, while the falling consumption of Good-Y leads to a rise in its MU.

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Answer 2

Answer:

MRS stands for marginal rate of substitution.it is the amount of good that a consumer is willing to consume.

Explanation:

It continuously deminishes because the as consumer is satisfied with a good. he start consuming less quantity of goods