The slope of the demand for consumption goods is
A) greater than 1.
B) equal to 1.
C) the MPC.
D) the MRS.
E) equal to the wage rate.

Question

Quizplus · Accepted Answer

The slope of the demand for consumption goods is equal to the marginal propensity to consume (MPC). This reflects the change in consumption resulting from a change in income. The MPC is usually less than 1, as individuals tend to save some portion of their income. Therefore, the correct answer is C.

The Slope of the Demand for Consumption Goods Is