The slope of an indifference curve is:
A)the sum of a consumer's demand curves for the goods they purchase.
B)derived from the supply curves of two different goods.
C)the measure of the goods' relative marginal utilities, or of the substitution terms on which the consumer would be willing to exchange a little less of one good in return for a little more of the other.
D)the same for all consumers.
E)none of the above.

Question

Quizplus · Accepted Answer

The slope of an indifference curve measures the rate at which a consumer is willing to substitute one good for the other while maintaining the same level of utility. This rate is determined by the relative marginal utilities of the goods, or the willingness of the consumer to trade off a little less of one good for a little more of the other. Therefore, choice C is the correct answer. Choices A, B, D, and E are incorrect.

The Slope of an Indifference Curve Is