What Does the Marginal Rate of Substitution Measure

Multiple Choice

What does the marginal rate of substitution measure?

A) It measures the rate at which a consumer must give up one good to purchase another good.
B) It measures the rate at which a consumer will substitute one good for another when the price of one good changes.
C) It measures the change in utility from consuming one additional unit of a good.
D) It measures the rate at which a consumer is willing to trade off one product for another while keeping utility constant.