Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 21 - Part VII - The Theory of Consumer Choice - Quick Check Multiple Choice - Page 458: 2

Answer

Option 'b'

Work Step by Step

The indifference curve measures the relative quantity of two distinct goods, X & Y. The goal of the indifference curve is to show equal trade offs between the purchase of one good and another. Most importantly, though, the slope of the indifference curve shows the marginal rate of substitution of a good, which is the rate by which a consumer can give up the consumption of one good for another.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.