The absolute value of the slope of an indifference curve is called the:
A) marginal rate of transformation.
B) transitivity slope.
C) indifference rate of preference.
D) marginal rate of substitution.

Question

Quizplus · Accepted Answer

The absolute value of the slope of an indifference curve is called the marginal rate of substitution (MRS). This measures the rate at which a consumer is willing to trade one good for another while remaining indifferent to the total utility or satisfaction.

The Absolute Value of the Slope of an Indifference Curve