The slope of an indifference curve is equal to:
A) - 1
B) positive, since indifference curves slope upward
C) the marginal rate of substitution
D) the same as the slope of the budget constraint at every point

Question

Quizplus · Accepted Answer

The slope of an indifference curve represents the rate at which a consumer is willing to give up one good in exchange for another while still maintaining the same level of satisfaction. This is also known as the marginal rate of substitution (MRS). Therefore, choice C is correct. Option A is incorrect because indifference curves can also slope upwards, so the slope can be positive. Option B is incorrect for the same reason as Option A. Option D is incorrect because the slope of the budget constraint represents the opportunity cost of one good in terms of the other, which is not necessarily equal to the MRS.

The Slope of an Indifference Curve Is Equal To