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

Question

Quizplus · Accepted Answer

The slope of the demand for consumption goods is equal to the marginal propensity to consume (MPC), which is the change in consumption resulting from a change in income. This is because as income increases, people tend to spend a portion of that increase on consumption goods, and the MPC measures that relationship. Therefore, the correct choice is D, the MPC.

The Slope of the Demand for Consumption Goods Is