Refer to the information provided in Figure 6.15 below to answer the questions that follow. Figure 6.15
-Refer to Figure 6.15. At point A, the slope of the indifference curve is
A) -0.67.
B) -1.5.
C) -3.0.
D) indeterminate because the marginal utilities are unknown.

Question

Refer to the information provided in Figure 6.15 below to answer the questions that follow.  Figure 6.15
-Refer to Figure 6.15. At point A, the slope of the indifference curve is
A) -0.67. 
B) -1.5. 
C) -3.0. 
D) indeterminate because the marginal utilities are unknown.

Quizplus · Accepted Answer

The slope of the indifference curve at point A is -0.67. This is because the marginal rate of substitution (MRS) at point A is -0.67, which means that the consumer is willing to give up 0.67 units of good X to get 1 unit of good Y and still remain on the same indifference curve.

Refer to the Information Provided in Figure 6