Suppose that an indifference curve for Jack is drawn measuring quantities of pencils along the horizontal axis and quantities of pens along the vertical axis. If the marginal value of an additional pencil is 3 pens for Jack, the slope of his indifference curve in this range is
A) 1/3.
B) 3.
C) 6.
D) dependent upon the prices of the two goods

Question

Suppose that an indifference curve for Jack is drawn measuring quantities of pencils along the horizontal axis and quantities of pens along the vertical axis. If the marginal value of an additional pencil is 3 pens for Jack, the slope of his indifference curve in this range is
A)	1/3.
B)	3.
C)	6.
D) dependent upon the prices of the two goods

Quizplus · Accepted Answer

The slope of an indifference curve measures the rate at which a consumer is willing to trade one good for another while remaining indifferent (keeping the same level of utility). The slope is given by the marginal rate of substitution (MRS).

MRS = (change in pens)/(change in pencils)

Since the marginal value of an additional pencil is 3 pens for Jack, we know that he is willing to give up 3 pens to get one more pencil. So, for any given point on the indifference curve, the MRS will be 3. This means that the slope of the indifference curve is 3. Therefore, the correct answer is B.

Suppose That an Indifference Curve for Jack Is Drawn Measuring