The slope of the indifference curve is defined as
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 slope of an indifference curve represents the rate at which a consumer is willing to substitute one good for another while still remaining indifferent (i.e., achieving the same level of satisfaction). This is known as the marginal rate of substitution (MRS), and it measures the amount of one good that a consumer is willing to give up in order to obtain an additional unit of the other good.

The Slope of the Indifference Curve Is Defined as