<p>Not really, you're right in that (loosely speaking) the MRS is the amount of one good someone <strong>is willing</strong> to give up in order to get an additional unit of another good. However, the slope of the budget line measures the amount of one good someone <strong>has</strong> to give up in order to get an additional unit of another good. </p>

<p>In the first case, only <em>preferences</em> matter, whereas in the second only <em>prices</em> are relevant.</p>

CC BY-SA 4.0
2019-01-07T09:15:30.207Z
2019-01-07T09:15:30.207Z
Patricio
<p>Slope of budget line= change in y/ change in x and also  Marginal rate of substitution= change in y/ change in x. If the definitions are same of both then what is the difference between the two? I mean 1. Slope of the budget line will be number of units of good y that the consumer is willing to sacrifice for an additional unit of good x. 2. The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good. Here both definitions means the same, right?</p>

CC BY-SA 4.0
2019-01-07T07:02:41.193Z
Your "definitions" are not very precise.
Giskard
CC BY-SA 4.0
2019-01-07T07:30:14.007Z
Now, are they precise?
Nandy
<microeconomics><consumer-theory>
Differences between Slope of budget line and MRS?
Nandy
# Differences between Slope of budget line and MRS?

(Asked by: username_0 on 2019-01-07)

Slope of budget line= change in y/ change in x and also Marginal rate of substitution= change in y/ change in x. If the definitions are same of both then what is the difference between the two? I mean 1. Slope of the budget line will be number of units of good y that the consumer is willing to sacrifice for an additional unit of good x. 2. The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good. Here both definitions means the same, right?

**Tags:** microeconomics, consumer-theory

> **Comments:**
> **username_1**: Your "definitions" are not very precise.  
> **username_0**: Now, are they precise?  

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## 1 answers

### Answer by username_2 on 2019-01-07. Score: 7

Not really, you're right in that (loosely speaking) the MRS is the amount of one good someone **is willing** to give up in order to get an additional unit of another good. However, the slope of the budget line measures the amount of one good someone **has** to give up in order to get an additional unit of another good.

In the first case, only *preferences* matter, whereas in the second only *prices* are relevant.


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