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The slope of an indifference curve is equal to the ratio of the of the good on the horizontal...

Question:

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.

Indifference Curve:

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

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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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Marginal Rate of Substitution: Definition, Formula & Example

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Chapter 3 / Lesson 51
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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.


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