The slope of the indifference curve is equal to the
A)Ratio of the price of one good to the price of the other good.
B)Income of the consumer.
C)Marginal rate of substitution.

Question

Quizplus · Accepted Answer

The slope of the indifference curve represents the marginal rate of substitution (MRS), which is the rate at which a consumer is willing to trade one good for another while remaining indifferent (or equally satisfied). Therefore, choice C, the Marginal rate of substitution, is the correct option. Choice A is incorrect because it only represents the relative prices between the two goods and not the consumer's willingness to trade them. Choice B is also incorrect because income does not affect the slope of an indifference curve.

The Slope of the Indifference Curve Is Equal to the