What is monotonic preference?
Asked by Topperlearning User | 25th Apr, 2016, 11:03: AM
A monotonic preference means that a rational consumer always prefers more of a good as it offers the consumer a higher level of satisfaction. A consumer may have different preference sets corresponding to the different levels of income.
Answered by | 25th Apr, 2016, 01:03: PM
- If a consumer’s preference is monotonic, can the consumer be indifferent between the combinations (10, 8) and (8, 4)?
- If the consumer is indifferent to the bundles (6, 7) and (7, 7), is the preference of the consumer monotonic?
- What is Marginal Rate of Substitution?
- Why do the indifference curves slope downwards?
- Explain indifference map with diagram.
- What is a utility function?
- Why should the consumer’s optimum point be located on the budget line?
- Explain the equality of the MRS and the price ratio.
- What are the properties of indifference curves, ICs?
Kindly Sign up for a personalised experience
- Ask Study Doubts
- Sample Papers
- Past Year Papers
- Textbook Solutions
Verify mobile number
Enter the OTP sent to your number