Question

When a preference is made between two bundles preferring one with more of atleast one good and no less of the other, it is called __________.

• A. Bundle of Preference
• B. Maximum Utility Bundle
• C. Utility Preferences
• D. Monotonic Preferences

Answer 1

The correct option is D Monotonic Preferences

Monotonic preferences means that a consumer will always prefer that bundle of goods that will have at least more of one good and no less of the other as it gives him a higher level of satisfaction.

Example: (8,8) (8,9)

In the above two bundles if the consumers preferences are monotonic he will choose bundle (8,9) as there is more of one of the good and no less of the other.