wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What is the absolute value of the slope of the indifference curve at any point called?

A
substitution rate
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
marginal rate of substitution
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
marginal rate of indifference
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
none of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B marginal rate of substitution
Marginal rate of substitution is the rate at which consumer will give up a quantity of goods for the exchange of another good. The formula for calculating the marginal rate of substitution is change in product 'x' divided by change in product 'y'. Calculating the marginal rate of substitution will the give the slope of the indifference curve.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Indifference Curves
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon