The slope of an indifference curve is equal to the ratio of the _____ of the good on the horizontal axis to the _____ of the good on the vertical axis.
The ordinal analysis of utility is undertaken using the indifference curves, in which we can order the level of satisfaction that the consumer gains by consuming a combination of two goods. The higher the level of indiffrence curve, the higher will be the level of satisfaction.
Answer and Explanation: 1
The slope of an indifference curve is equal to the ratio of the change in units of the good (X)on the horizontal axis to the change in units of the...
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fromChapter 3 / Lesson 51
Learn how to calculate the marginal rate of substitution and its application in economics. View examples of the formula in use with real world application.