Question

If the consumer has monotonic preferences, then can he/she be indifferent towards bundles (10, 8) and (8, 6)?

Answer 1

ANSWER:

No the consumer cannot be indifferent towards the bundles is he/she has monotonic preference and the consumer should choose bundle (10,8) to bundle (8,6) since it has more of both goods

EXPLANATION:

    Considering the two bundles such that one bundle has more of any of the good as compared to the other bundle. The preference is monotonic since one bundle has more of atleast good 1 (as it gives him more satisfaction) and not less than good 2 (as lesser goods would have given him/her lesser satisfaction).

     If, the consumer’s preference is monotonic, these 2 bundles can be indifferent only if the bundle having more of good 2 has less of good 1 in preference to the other bundle.