If a consumer has monotonic preferences, can she be indifferent between the bundles (10,8) and (8, 6)?
If a consumer has monotonic preferences, can she be indifferent between the bundles (10,8) and (8, 6)?
4 views
2 Answers
No, he/she cannot be indifferent towards these two bundles as bundle 1 consists of more of both goods as compared to bundle 2. He/she will prefer bundle 1 over bundle 2 as it contains 10 units of good 1 and 8 units of good 2 as compared to 8 units and 6 units of good 1 and good 2 respectively in bundle 2.
4 views
Answered
No, if a consumer has monotonic preferences then bundle (10, 8) is pre{erred to bundle (8, 6) as bundle (10, 8) has more of both goods.
4 views
Answered