At any point on an indifference curve,the slope indicates:
A)the relative price ratio of the two goods.
B)the allocation of the consumer's income between the two goods.
C)the marginal rate of substitution between the two goods.
D)how the total satisfaction of the consumer changes with different market baskets.

Question

Quizplus · Accepted Answer

The slope of an indifference curve indicates the marginal rate of substitution between the two goods, which shows the amount of one good the consumer is willing to give up for an additional unit of the other good while maintaining the same level of satisfaction. Therefore, the correct answer is C.

At Any Point on an Indifference Curve,the Slope Indicates