The slope at any point on an indifference curve equals the absolute price at which one consumer is willing to substitute one good for the other.

Question

Quizplus · Accepted Answer

The slope at any point on an indifference curve represents the rate at which a consumer is willing to trade off one good for another while remaining at the same level of utility. The absolute price at which a consumer is willing to substitute one good for the other is represented by the ratio of the prices of the two goods. Therefore, the statement is false.

The Slope at Any Point on an Indifference Curve Equals