Question

Suppose a consumer's preferences are monotonic. What can you say about his preferences ranking over the bundles (10, 10), (10, 9) and (9, 9)?

Solution

(i) The consumer will prefer bundle (10, 10) to the other two bundles (10, 9) and (9, 9).
(ii) Between the other two bundles, he will prefer bundle (10, 9) to bundle (9, 9).

Some More Questions From Theory Of Consumer Behaviour Chapter

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

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Theory Of Consumer Behaviour

Suppose a consumer's preferences are monotonic. What can you say about his preferences ranking over the bundles (10, 10), (10, 9) and (9, 9)?

Some More Questions From Theory Of Consumer Behaviour Chapter

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

Why does demand curve slope downwards?

Differentiate between substitute and complementary goods.

What is meant by one good being substitute of other?

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