The slope of a consumer indifference curve at any given point on the curve reflects (ignoring the negative sign)
A) the marginal rate of transformation (MRT) in production of one commodity into the Other commodity.
B) the marginal rate of technical substitution (MRTS) between the factors of production.
C) the relative prices of the commodities in the consumption bundle of goods.
D) the marginal rate of substitution (MRS) of the consumer between the two goods.

Question

Quizplus · Accepted Answer

The slope of a consumer indifference curve at any point reflects the marginal rate of substitution (MRS) of the consumer between the two goods, which is the amount of one good a consumer is willing to give up to obtain an additional unit of the other good while maintaining the same level of utility. Therefore, choice D is the correct option. Choices A, B, and C do not correctly reflect the slope of an indifference curve in consumer theory.

The Slope of a Consumer Indifference Curve at Any Given