1.

What is Monotonic Preference ? 

Answer»

A Consumer’s preferences are monotonic 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 goods as compared to other bundle.

Example: A consumer with monotonic preference will prefer the bundle (2,3) to bundles (2,2),(1,3) and (1,2) bundles. 



Discussion

No Comment Found

Related InterviewSolutions