The slope of the indifference curve is defined as
A) the marginal rate of substitution.
B) the marginal rate of transformation.
C) the marginal propensity to consume.
D) the marginal propensity to substitute.
E) the relative price of good Y.

Question

Quizplus · Accepted Answer

The slope of the indifference curve represents the rate at which the consumer is willing to substitute one good for another while remaining at the same level of utility. This is the definition of the marginal rate of substitution (MRS). Therefore, choice A is the correct answer.

The Slope of the Indifference Curve Is Defined as