The slope of an indifference curve is
A)the rate of change of consumer's preferences.
B)the marginal rate of preference.
C)the marginal rate of substitution.
D)always equal to the slope of the budget constraint.

Question

Quizplus · Accepted Answer

The slope of an indifference curve is known as the marginal rate of substitution (MRS), which represents the rate at which a consumer is willing to give up one good for another while remaining on the same level of utility (or satisfaction). Therefore, choice (C) is the correct answer. Choice (A) is incorrect because the slope of an indifference curve does not represent the rate of change of a consumer's preferences. Choice (B) is incorrect because the term "marginal rate of preference" is not a commonly used economic concept. Choice (D) is incorrect because the slope of an indifference curve can be different from the slope of the budget constraint, especially if the consumer is not spending all of their income or if there are changes in prices.

The Slope of an Indifference Curve Is