Homonym: MRS (Mistress)
MRS, or Marginal Rate of Substitution, is an economic concept that measures the rate at which a consumer is willing to give up one good in exchange for another while maintaining the same level of utility or satisfaction. It reflects the trade-offs consumers make between different goods and services, helping to understand their preferences.
In a graphical representation, MRS is often illustrated by the slope of an indifference curve, which shows combinations of two goods that provide equal satisfaction. The steeper the curve, the higher the MRS, indicating that a consumer is willing to sacrifice more of one good for an additional unit of another good.