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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» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/consumer-25599" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMER">CONSUMER</a> will prefer the <a href="https://interviewquestions.tuteehub.com/tag/bundle-905567" style="font-weight:bold;" target="_blank" title="Click to know more about BUNDLE">BUNDLE</a> (5,5) as <a href="https://interviewquestions.tuteehub.com/tag/compared-7256615" style="font-weight:bold;" target="_blank" title="Click to know more about COMPARED">COMPARED</a> to all the three bundles if he has monotonic preferences. <br/> `**` The consumer will prefer the bundle `(5,5)` as compared to bundle (4,4) because the <a href="https://interviewquestions.tuteehub.com/tag/former-7375780" style="font-weight:bold;" target="_blank" title="Click to know more about FORMER">FORMER</a> has more of both <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a>. <br/> `**` 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. <br/> `**` 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. <br/> So, the consumer will prefer the bundle (5,5)</body></html>


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