Question 10 of 26beginner🧠 RememberVery Short1 mark
What do you mean by ‘monotonic preferences’?
Correct Answer
A consumer's preferences are called monotonic preferences if and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle.
Exercise: EXERCISES | Q: 10
For More Understanding
Explanation
The textbook defines monotonic preferences as a situation where a consumer consistently prefers a bundle that offers more of at least one good without reducing the quantity of the other good. This assumption implies that 'more is better' for the consumer.