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Figure 5.12
-(Figure 5.12) The substitution effect will be largest for indifference curve:

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Use the following to answer question:
Figure 5.12 
-(Figure 5.12) The substitution effect will be largest for indifference curve:

Quizplus · Accepted Answer

The substitution effect is largest when the indifference curve is relatively flat, indicating that the consumer is willing to substitute one good for another with little change in utility. Of the given indifference curves, U1 is the flattest, indicating that the substitution effect will be largest for this indifference curve.

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