The marginal rate of substitution is determined by the slope of an indifference curve.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the amount of one good a consumer is willing to give up (i.e. the slope of the indifference curve) in order to acquire an additional unit of another good, while remaining indifferent between the two bundles of goods. Therefore, the MRS is indeed determined by the slope of an indifference curve.

The Marginal Rate of Substitution Is Determined by the Slope