The slope of a(n)_____ curve shows the rate at which two goods can be exchanged _____ the consumer's _____.
A)marginal utility;by increasing;marginal utility
B)indifference;without affecting;total utility
C)utility;without affecting;budget
D)indifference;without affecting;budget

Question

Quizplus · Accepted Answer

The slope of an indifference curve shows the rate at which two goods can be exchanged without affecting the consumer's total utility. This is because the consumer is indifferent between different combinations of the two goods on the same indifference curve, and as long as the combination provides the same total utility, the consumer is willing to exchange one good for another at a constant rate. The slope of the indifference curve represents this constant rate of exchange.

The Slope of A(n)_____ Curve Shows the Rate at Which