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Unilorin Post-UTME Economics 2023 (Model questions) Question 6

Question 6

Theory of Consumer Behaviour

Which of the following indicates the negative slope of the indifference curve?

  1. A.marginal rate of substitution
  2. B.axiom of transitivity
  3. C.budget schedule
  4. D.consumer equilibrium
Show the answer and explanation

Answer: A (marginal rate of substitution)

Explanation

The slope of an indifference curve measures the marginal rate of substitution: how much of one good the consumer gives up for one more unit of the other.