English

Suppose Your Friend is Indifferent to the Bundles (5, 6) and (6, 6). Are the Preferences of Your Friend Monotonic?

Advertisements
Advertisements

Question

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic? 

Short/Brief Note
Advertisements

Solution

It is given that my friend is indifferent towards the bundles (5, 6) and (6, 6). This implies that his/her preferences are not monotonic. If he/she is indifferent towards both the bundles, then it means that he/she derives the same level of satisfaction and assigns them the same rank. However, the second bundle consists of more of both the goods. Thus, according to the monotonicity assumption, he/she must prefer the second bundle over the first.

shaalaa.com
Preferences of the Consumer
  Is there an error in this question or solution?
Chapter 2: Theory of Consumer Behaviour - Exercise [Page 35]

APPEARS IN

NCERT Economics Introductory Microeconomics [English] Class 11
Chapter 2 Theory of Consumer Behaviour
Exercise | Q 13 | Page 35
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×