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
Utility Maximizing Bundle
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B
Utility
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C
Preference Bundle
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D
Monotonic Preferences
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Solution
The correct option is D Monotonic Preferences Monotonic preferences would mean that between two bundles the consumer will choose the one where there is at least more of one good and no less of the other. As it would give him higher satisfaction.
Eg (8,8) (8,9) the consumer would choose (8,9) as there is more of one good.