The Marginal Rate of Substitution Calculator helps in understanding the trade-offs between two goods, indicating how much of one good a consumer is willing to give up for an additional unit of another good, keeping utility constant.
It offers both a Basic Calculator for direct MRS calculations and an Advanced Calculator for average MRS between two goods pairs.
Marginal Rate of Substitution Calculator
Basic Calculator Usage
Marginal Utility of Good X: Enter the marginal utility of the first good.
Marginal Utility of Good Y: Enter the marginal utility of the second good.
Marginal Rate of Substitution (MRS): Calculate or input MRS, which is the rate at which the goods are substituted.
How To Calculate
Example 1:
Step
Value
Marginal Utility of X
12
Marginal Utility of Y
4
Calculation
12/4
MRS Result
3
In this case, the MRS is 3, meaning for every unit of Good Y, the consumer is willing to give up 3 units of Good X.
Example 2:
Step
Value
Marginal Utility of X
15
Marginal Utility of Y
5
Calculation
15/5
MRS Result
3
Here, the MRS is also 3, reflecting similar trade-off preferences
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