Question

Slope of indifference curve is 4 ,what does it indicate?

Answer 1

The slope of indifference curve is also known as Marginal Rate of Substitution(MRS) in Microeconomics.Hence,in this case,the MRS is 4.

Explanation:

An MRS value of 4 in indifference curve indicates that the consumer in this instance,is willing to substitute or exchange 4 units of a particular good/commodity for 1 unit purchase of another good/commodity.Indifference curve illustrates the different combination of two goods/commodities that a consumer is willing to purchase to obtain a certain level of satisfaction or utility.Hence,a slope of 4 implies that along the same indifference curve,the consumer is willing to give up or trade off 4 units of one good to purchase 1 unit of the other,which is also the MRS as stated.