At the consumer equilibrium, the slope of the indifference curve is?
Answer Details
At the consumer equilibrium, the slope of the indifference curve is equal to the slope of the budget constraint line.
The consumer equilibrium is the point where the budget constraint line and the highest possible indifference curve intersect. The budget constraint line represents the different combinations of two goods that a consumer can afford to buy with a given budget, while the indifference curve represents the different combinations of those two goods that provide the same level of satisfaction or utility to the consumer.
The slope of the budget constraint line represents the rate at which one good can be exchanged for another good, while the slope of the indifference curve represents the consumer's marginal rate of substitution, or the rate at which the consumer is willing to exchange one good for another while remaining indifferent or equally satisfied.
At the consumer equilibrium, the consumer is maximizing their utility subject to their budget constraint, which means that the slope of the indifference curve is equal to the slope of the budget constraint line. Any point above or below this equilibrium point would result in a lower level of utility or affordability, respectively. Therefore, the slope of the indifference curve at the consumer equilibrium is equal to the slope of the budget constraint line.