Save Question 19 1 point If Freds marginal rate of substitut

Save Question 19 (1 point) If Fred\'s marginal rate of substitution of salad for pizza equals five, then he will eat five times as much salad as pizza he would give up five salads to get the next pizza. he will eat five times as much pizza as salad. he would give up five pizzas to get the next salad. Save Question 20 (1 point)

Solution

Ans: B – He would give up five salads to get the next pizza.

Marginal rate of substitution means when consumer is willing to give up number of unit goods in exchange of another goods and remain satisfied as much as for one goods that rate is called marginal rate of substitution. Marginal rate of substitution does not elucidate the preference of on goods over another but it gives you idea that person can give up certain things for another things.