The ____ is the absolute value of the slope of an indifference curve.
A) marginal rate of substitution
B) average rate of transitivity
C) relative rate of utility
D) marginal rate of transposition

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) measures the rate at which a consumer is willing to substitute one good for another while remaining indifferent, and it is equal to the absolute value of the slope of an indifference curve. Thus, the correct answer is A) marginal rate of substitution.

The ____ Is the Absolute Value of the Slope of an Indifference