The magnitude of the slope of an indifference curve is:
A) called the marginal rate of substitution.
B) equal to the ratio of the total utility of the goods.
C) always equal to the ratio of the prices of the goods.
D) all of the above
E) A and C only

Question

Quizplus · Accepted Answer

The magnitude of the slope of an indifference curve is called the marginal rate of substitution, which is the rate at which a consumer is willing to trade one good for another while maintaining the same level of satisfaction.

The Magnitude of the Slope of an Indifference Curve Is