ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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(12, 8)
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(12, 12)
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(10, 6)
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(8, 12)
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Detailed explanation-1: -A consumer having monotonic preference cannot be indifferent between two given bundle because bundle 1 contains more of goods as compared to bundle 2. So she should prefer bundle 1.
Detailed explanation-2: -A consumer’s preferences are monotonic.
Detailed explanation-3: -The consumer cannot be indifferent between the two.
Detailed explanation-4: -Monotonic preferences means the consumer preferences are such that greater consumption of a commodity always offers him a higher level of satisfaction.
Detailed explanation-5: -INTRODUCTION. MONOTONICITY OF PREFERENCES is a common assumption in the theory of the core of an economy. It implies that any increase in consumption will be welcomed by a consumer, independent of the reference consumption bundle.