The marginal rate of substitution is illustrated by the
A)slope of the indifference curve.
B)slope of the budget line.
C)ratio of the marginal utility of the good on the vertical axis to the marginal utility of the good on the horizontal axis.
D)distance between the indifference curves.
E)distance between the budget line and the indifference curve.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is represented by the slope of the indifference curve, which shows the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

The Marginal Rate of Substitution Is Illustrated by the