The magnitude of the slope of an indifference curve is
A)the marginal rate of substitution.
B)the marginal rate of transformation.
C)the marginal propensity to consume.
D)the marginal propensity to substitute.
E)the relative price of good Y.

Question

Quizplus · Accepted Answer

The magnitude of the slope of an indifference curve measures the rate at which a consumer is willing to substitute one good for another while remaining on the same indifference curve. This is known as the marginal rate of substitution (MRS) and is the amount of one good a consumer is willing to give up in exchange for an additional unit of another good, while keeping utility constant.

The Magnitude of the Slope of an Indifference Curve Is