Question : The indifference curve's slope is calculated using:
Option 1: Marginal Rate of Substitution
Option 2: Marginal Opportunity Cost
Option 3: Marginal Rate of Transformation
Option 4: None of these
Answer (1)
20th Jan, 2024
Correct Answer: Marginal Rate of Substitution
Solution :
The marginal rate of substitution, which determines the slope of the indifference curve, decreases when the quantity of X rises relative to the quantity of Y.
Hence option a is the correct answer.
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