The marginal rate of substitution between two goods is given by
A) The inverse of the slope of an indifference curve
B) The slope of a line tangent to an indifference curve
C) Negative one times the inverse of the slope of an indifference curve
D) Negative one times the slope of a line tangent to an indifference curve

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the negative of the slope of the tangent to the indifference curve, representing the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

The Marginal Rate of Substitution Between Two Goods Is Given