The slope of an indifference curve tells us:
A) the marginal utility the consumer receives from consuming an additional unit of a good.
B) how much of one good is required to compensate the consumer for giving up some of another good.
C) the amount of utility a consumer receives from consuming a bundle of goods.
D) the rate at which utility changes as more of one good is consumed.

Question

Quizplus · Accepted Answer

The slope of an indifference curve represents the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility, which is essentially how much of one good is required to compensate the consumer for giving up some of another good.

The Slope of an Indifference Curve Tells Us