Q379
The slope of indifference curve indicates
A.
Price ratio between two commodities
B.
Marginal rate of substitution
AnswerC.
Factor substitution
D.
Level of indifference
Answer: Option B
Solution
Answer: Option B
Solution:
The slope of indifference curve indicates Marginal rate of substitution. The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good, as long as the new good is equally satisfying.