Practicing Success
Practicing Success
CUET Preparation Today
In case of perfect substitute, the marginal rate of substitution ________. |
Diminishes Rises Does not apply Constant |
Constant |
Of the above options, Constant is the answer.
In the case of perfect substitutes, the marginal rate of substitution (MRS) is constant. This means that a consumer is always willing to trade one unit of one good for one unit of the other good. This is because the two goods are perfectly substitutable, so the consumer does not care which good they consume. |
