The slope at any point on an indifference curve is known as the
A) marginal rate of indifference.
B) marginal rate of trade-off.
C) trade-off rate.
D) marginal rate of substitution.

Question

Quizplus · Accepted Answer

The slope at any point on an indifference curve represents the rate at which a consumer is willing to substitute one good for another while remaining on the same level of utility. This is known as the marginal rate of substitution. Choice A is not correct because "indifference" is not a term used in economics to describe the rate of substitution. Choice B is incorrect because it is not a commonly used term in economics. Choice C is not the correct term used for this concept.

The Slope at Any Point on an Indifference Curve Is