Marginal Rate of Substitute Formula = Y/ X where, Y Change in Good Y X Change in Good X The MRS formula shows that when the number of substitutes grows in the subsequent phases and the number of current resources decreases, the MRS falls. MRS representation in terms of marginal utility Limitations See more

The following equation is used to calculate a marginal rate of substitution. MRS = MU x / MU y Where MRS is the marginal rate of

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Tutorial explaining the indifference curves and marginal rate of substitution for microeconomics or managerial economics class.Like MyBookSucks on Facebookht

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