Question

Suppose your friend is indifferent to the bundles (4,6) and (6,6). Are the preferences of your friend monotonic?

• A. Yes. He has reached his maximum level of satisfaction for Good-2 at (4,6).
• B. No. He has not reached his maximum level of satisfaction for Good-1 yet.
• C. Yes. He has reached his maximum level of satisfaction for both Good-1 and Good-2.
• D. No. He has not reached his maximum level of satisfaction for either good.

Answer 1

The correct option is B No. He has not reached his maximum level of satisfaction for Good-1 yet.

If a consumer has monotonic preferences, he would prefer the bundle (6,6) to the bundle (4,6), because the bundle (6,6) has more of Good-1 as compared to the bundle (4,6)