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Marginal Rate of Substitution Definition. The Marginal Rate of Substitution (MRS) is defined as the rate at which a consumer is ready to exchange a number of units good X for one more of good Y at the same level of utility. The Marginal Rate of Substitution is used to analyze the indifference curve. This is because the slope of an indifference The marginal rate of substitution at a point on the indifference curve is equal to the slope of the indifference curve at that point and can therefore be found out by ate tangent of the angle which the tangent line made with the X-axis. Ordinal Approach of Utility - IC (Indifference curves) and MRS (Marginal Rate of Substitution). - Duration: 9:36. MICA - Mysore Institute of Commerce and Arts 2,186 views
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