Question

Let there be three bundles containing good X and good Y; Bundle (20,10), Bundle (20,20) and bundle(9,20). If a consumer has monotonic preferences, which bundle will be preferred by him? Give reason for your answer.
CLASS 11 ECONOMICS

Answer 1

Given : three bundles containing good X and good Y; Bundle (20,10), Bundle (20,20) and bundle(9,20)

a consumer has monotonic preferences

To Find :  which bundle will be preferred by him

Solution:

monotonic preferences :  always prefers more of a commodity

there are two bundles (x₁ , y₁ ) and (x₂ , y₂)

Then   (x₁ , y₁ )  will be preferred by monotonic

if      x₁ > x₂  and  y₁  > y₂

or if   x₁ > x₂  and y₁ ≥ y₂  

or if   x₁ ≥ x₂  and y₁ >  y₂  

 Bundle (x , y)

 Bundle (20,10),

 Bundle (20,20)

  Bundle (9,20)

 Bundle (20,10), vs   Bundle (20,20)  x: 20 = 20  and   y :  10 < 20

Hence  Bundle (20,20) is preferred

  Bundle (9,20)  vs   Bundle (20,20)  x: 9 < 20 and   y : 20 = 20

Hence  Bundle (20,20) is preferred

Bundle (20,20)  has x and  y   maximum Hence    Bundle (20,20) will be preferred

Learn More:

monotonic preferences,

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Answer 2

Answer:

ऊपर कांचा काइट

Explanation:

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