The slope of an indifference curve represents the maximum amount of one commodity that a consumer is willing to give up in exchange for one more unit of another commodity.

Question

Quizplus · Accepted Answer

This statement is true as the slope of the indifference curve represents the marginal rate of substitution, which is the amount of one commodity a consumer is willing to give up to obtain one more unit of another commodity while still remaining indifferent between the two.

The Slope of an Indifference Curve Represents the Maximum Amount