The magnitude of the slope of an indifference curve
A) is equal to the marginal rate of substitution.
B) always equals the relative price of the product measured along the horizontal axis.
C) increases as income increases.
D) decreases when income increases.

Question

Quizplus · Accepted Answer

The magnitude of the slope of an indifference curve is equal to the marginal rate of substitution (MRS), which measures the rate at which a consumer is willing to trade one good for another while remaining indifferent to the level of satisfaction.

The Magnitude of the Slope of an Indifference Curve