The slope of an indifference curve is equal to the
A)degree of responsiveness of demand to a change in price.
B)price elasticity of demand for a good.
C)rate of substitution between two goods.
D)marginal utility of a good measured on the horizontal axis.
E)marginal utility of a good measured on the vertical axis.

Question

Quizplus · Accepted Answer

The slope of an indifference curve represents the rate at which a consumer is willing to substitute one good for another while still remaining indifferent (i.e. receiving the same level of satisfaction). Therefore, the slope is equal to the rate of substitution between two goods.

The Slope of an Indifference Curve Is Equal to the