The rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is called the

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The question asks for the term that describes the rate at which a consumer is willing to exchange one good for another while keeping satisfaction constant. This is a classic concept in consumer theory.

Option provided: a. marginal rate of substitution. This term is defined as the slope of the indifference curve, representing the amount of good Y a consumer is willing to give up for an extra unit of good X while remaining on the same level of utility. It captures the trade-off between the two goods at a given level of satisfaction.

If we consider why other potential terms are incorrect (even though they aren’t listed here):
- Marginal utility would measure the additional satisfaction from consuming one more unit of a single good, not the rate of substitution between two goods.
- The price ratio or relative prices describes what is exchanged in markets, but the rate at which a consumer is willing to trade goods in terms of their satisfaction is encapsulated by the MRS, not by price alone.
- Elasticity concepts (like cross-price elasticity) describe responsiveness to price changes, not the steady-state trade-off along an indifference curve.

In sum, the precise concept matching the description is the marginal rate of substitution, since it directly quantifies the trade-off between two goods while holding utility constant.

The rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is called the

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