The slope of an indifference curve reflects:
A)the income of a consumer.
B)the relative value that a consumer places on one commodity compared to another.
C)the relative price of two commodities.
D)the utility number associated to the utility function.

Question

Quizplus · Accepted Answer

The slope of an indifference curve reflects the relative value or importance that a consumer places on one commodity compared to another. This means that it shows how much of one good a consumer is willing to give up in order to obtain more of the other good while remaining indifferent or equally satisfied. The income of a consumer, the relative price of two commodities, and the utility number associated with the utility function do not directly affect the slope of an indifference curve.

The Slope of an Indifference Curve Reflects