wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

If a consumer has monotonic preferences, can she be indifferent between the bundles (10, 8) and (8, 6)?

Open in App
Solution

No. the consumer can't be indifferent between the two.
If the consumer's preferences are monotonic, she cannot be indifferent between the combinations (10, 8) and (8, 6). Because, the first combination (10, 8) allows more of both the goods as compared to the second combination (8, 6). Implying that first combination offers higher level of satisfaction, and the consumer must prefer it to the other.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Introduction to Marketing
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon