Principles of Microeconomics / Unit 5 MIC 0421 short lesson, about 20 seconds
The Marginal Rate of Substitution
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The idea
The marginal rate of substitution is how much of one good a consumer gives up for one more of the other at equal satisfaction: the curve's slope, which falls along it.
In practice
With many snacks and few books, a book is worth many snacks.
Where people slip
The falling rate is diminishing marginal utility again: the scarcer good is worth more at the margin.
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