SUMMARY
The slope of the indifference curve is always negative due to the definition of the marginal rate of substitution (MRS), which is represented as MRS = -(dy/dx). This negative slope indicates that as the quantity of good X increases, the quantity of good Y must decrease to maintain constant utility. A positive slope would imply that increasing one good would also increase the other, contradicting the principle of constant utility along the curve.
PREREQUISITES
- Understanding of marginal rate of substitution (MRS)
- Familiarity with indifference curves in consumer theory
- Basic knowledge of utility theory
- Graphical interpretation of slopes in economics
NEXT STEPS
- Study the implications of the marginal rate of substitution in consumer choice theory
- Explore the properties of indifference curves and their shapes
- Learn about the concept of utility maximization
- Investigate the relationship between MRS and budget constraints
USEFUL FOR
Economics students, educators, and anyone interested in understanding consumer behavior and utility theory.