The Slope of the Indifference Curve Is Equal to the

question 125

Multiple Choice

The slope of the indifference curve is equal to the

• A)Ratio of the price of one good to the price of the other good.
• B)Income of the consumer.
• C)Marginal rate of substitution.
• D)Slope of the demand curve.

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Definitions:

Price

The sum of money anticipated, needed, or handed over in exchange for something.

Consumer Surplus I

The gap between what consumers are prepared and able to spend on a product or service and what they end up paying.

Price

The amount of money required to purchase a good or service.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.