Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Marginal rate of substitution
In this guide
The additional amount of one good required to compensate a consumer for a small decrease in the quantity of another, per unit of the decrease. The marginal rate of substitution at a particular level of consumption is given by the negative of the gradient of the indifference curve.
Reference: Oxford Press Dictonary of Economics, 5th edt.
