If the slope of the indifference curve for goods X and Y is -2, then the marginal rate of substitution is
A) 0.
B) 1/2.
C) 2.
D) infinite.

Name: If the slope of the indifference curve for goods X and Y is -2, then the marginal rate of substitution is A) 0. B) 1/2. C) 2. D) infinite.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is equal to the absolute value of the slope of the indifference curve. Therefore, if the slope of the indifference curve is -2, then the MRS is equal to 2. Thus, the answer is C.

If the Slope of the Indifference Curve for Goods X