slope of an indifference curve
A)shows the change in utility from an additional unit of the good.
B)shows the rate at which the consumer is able to substitute goods in the market.
C)is equal to the price ratio at all points.
D)is the rate at which the consumer is willing to exchange one good for another,utility held constant.
E)all of the above

Question

Quizplus · Accepted Answer

The slope of an indifference curve represents the rate at which a consumer is willing to substitute one good for another while holding utility constant. This means it reflects the consumer's willingness to exchange one good for another, without affecting their level of satisfaction or utility. Choice A is incorrect because the slope of an indifference curve does not show a change in utility from an additional unit of the good. Choice B is incorrect because the slope of an indifference curve does not directly represent the rate at which a consumer is able to substitute goods in the market. Choice C is incorrect because the price ratio is not necessarily equal at all points on an indifference curve.

Slope of an Indifference Curve