Which of the following statements is true?
Statement 1: MRS is simply the rate at which the consumer will substitute bananas for mangoes, so that her total utility remains constant.
Statement 2: As we move down along the indifference curve, MRS falls. 

Both the statements are true.

The correct answer is option 1: Both the statements are true.

• Statement 1: The Marginal Rate of Substitution (MRS) indeed represents the rate at which a consumer is willing to substitute one good for another (in this case, bananas for mangoes) while maintaining the same level of total utility.

• Statement 2: As we move down along an indifference curve, the MRS typically falls due to the principle of diminishing marginal utility. This means that as a consumer has more of one good and less of another, they are willing to give up fewer units of the first good to obtain additional units of the second good.