The magnitude of the slope of an indifference curve
A) increases as income increases.
B) is equal to the marginal rate of substitution.
C) always equals the relative price of the product measured along the horizontal axis.
D) decreases when income increases.

Question

Quizplus · Accepted Answer

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

The Magnitude of the Slope of an Indifference Curve