what is the meaning of monotonic preferences? Explain why higher indifference curve higher lever of satisfaction.
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In economics, an agent's preferences are said to be weakly monotonic if, given a consumption bundle {\displaystyle x} x, the agent prefers all consumption bundles {\displaystyle y} y that have more of every good. That is, {\displaystyle y\gg x} {\displaystyle y\gg x} implies {\displaystyle y\succ x} y\succ x. An agent's preferences are said to be strongly monotonic if, given a consumption bundle {\displaystyle x} x, the agent prefers all consumption bundles {\displaystyle y} y that have more of at least one good, and not less in any other good. That is, {\displaystyle y\geq x} y\geq x and {\displaystyle y\neq x} {\displaystyle y\neq x} imply {\displaystyle y\succ x} y\succ x.
This definition defines monotonic increasing preferences. Monotonic decreasing preferences can often be defined to be compatible with this definition. For instance, an agent's preferences for pollution may be monotonic decreasing (less pollution is better). In this case, the agent's preferences for lack of pollution are monotonic increasing.
Higher Indifference Curve represents higher level of satisfaction, in other words, any combination that lies on a higher Indifference Curve i.a. away from origin represents a higher level of satisfaction.
In economics, an agent's preferences are said to be weakly monotonic if, given a consumption bundle {\displaystyle x} x, the agent prefers all consumption bundles {\displaystyle y} y that have more of every good. That is, {\displaystyle y\gg x} {\displaystyle y\gg x} implies {\displaystyle y\succ x} y\succ x. An agent's preferences are said to be strongly monotonic if, given a consumption bundle {\displaystyle x} x, the agent prefers all consumption bundles {\displaystyle y} y that have more of at least one good, and not less in any other good. That is, {\displaystyle y\geq x} y\geq x and {\displaystyle y\neq x} {\displaystyle y\neq x} imply {\displaystyle y\succ x} y\succ x.
This definition defines monotonic increasing preferences. Monotonic decreasing preferences can often be defined to be compatible with this definition. For instance, an agent's preferences for pollution may be monotonic decreasing (less pollution is better). In this case, the agent's preferences for lack of pollution are monotonic increasing.
Higher Indifference Curve represents higher level of satisfaction, in other words, any combination that lies on a higher Indifference Curve i.a. away from origin represents a higher level of satisfaction.
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