Suppose there are four bundles containing goods x and goods y, bundle (5,5), Bundle (4,4), Bundle (5,4), Bundle (4,5). If a consumer's perferences are monotonic, then which bundle will be preferred by the consumer ? Give reason for your answer.

Suppose there are four bundles containing goods x and goods y, bundle

1.	Suppose there are four bundles containing goods x and goods y, bundle (5,5), Bundle (4,4), Bundle (5,4), Bundle (4,5). If a consumer's perferences are monotonic, then which bundle will be preferred by the consumer ? Give reason for your answer.
Answer» Solution :CONSUMER will prefer the BUNDLE (5,5) as COMPARED to all the three bundles if he has monotonic preferences. `` The consumer will prefer the bundle `(5,5)` as compared to bundle (4,4) because the FORMER has more of both GOODS. `` Similarly, he will prefer the bundle (5, 5) as compared to bundle (5,4)because the former has same amount of good x, but more of good y. `**` Similarly, he will prefer the bundle (5,5) as compared to bundle (4,5) because the former has same amount of good y, but more of good x. So, the consumer will prefer the bundle (5,5)