Q11 of 26 Page 34

If a consumer has monotonic preferences, can she be indifferent between the bundles (10, 8) and (8, 6)?

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.


More from this chapter

All 26 →
9

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced at Rs 10 and the consumer’s income is Rs 40.

(i) Write down all the bundles that are available to the consumer.


(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40.

 10

What do you mean by ‘monotonic preferences’?

 12

Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?

 13

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