Why MRS is Diminishing? | Reason for Diminishing MRS | Dr. Ali Mahdi Naqvi

Meaning Indifference Curve is a curve that shows various combinations of two commodities that gives equal level of satisfaction One of the assumption of Indifference analysis is diminishing MRS WHAT IS MRS? MRS is the rate at which the consumer substitutes one good for another and that rate will be diminishing in case of Indifference Analysis. This diminishing MRS leads to the convexity of IC towards its origin. Law of diminishing marginal utility is the cause behind the decreasing MRS, as the consumer's utility falls due to the use of one particular commodity, he/she will be ready to sacrifice lesser of the other commodity. You have been invited by Dr Ali Mahdi Naqvi to join classroom Online Economics Class Enroll to Teachmint using: https://www.teachmint.com/enroll/7330... Classroom ID: 733058607 Subject: Economics This lecture on "Reasons of diminishing MRS" will be useful for the students of Class 11, 12, BA BBA, B.Com, M.Com, MBA, CA, CS and the aspirants of other competitive examinations like UPSC, etc. Along with that, this lecture will be useful to all those who want to learn the basic concepts of ECONOMICS. For suggestions and queries, you are free to contact on +91 8960727786 or can join our Whatsapp group via link given below https://chat.whatsapp.com/A9imCwhs0jI... #diminishingmrs #marginalrateofsubstitution #diminishingutility #indifferencecurve #ordinalutility #indifferencecurveanalysis #budgetline #consumerequilibrium #consumerequilibriumindifferencecurveanalysisclass11, #consumerequilibriumincaseoftwocommodities, #consumerequilibriumbyindifferencecurveanalysis, #consumerequilibriumindifferencecurve, #consumerequilibriumandindifferencecurve, #consumerequilibriumandbudgetline, #consumerequilibriumbyindifferencecurveapproach, #lawofconsumerequilibrium, #consumerequilibriumbudgetlineindifferencecurve, #consumerequilibriummicroeconomics #dralimahdinaqvi #theeducatorsindia