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Question
What is meant by monotonic preferences?
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Solution 1
A monotonic preference means that a rational consumer always prefers more of a good as it offers the consumer a higher level of satisfaction. A consumer may have different preference sets corresponding to the different levels of income.
Solution 2
Monotonic preference means that a rational consumer always prefers more of a commodity as it offers him a higher level of satisfaction.
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RELATED QUESTIONS
What do you mean by monotonic preferences?
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Shift from a lower to a higher indifference curve.
