what is monotonic preference ?????explain with example.
Dear Student
Consumers are assumed to have monotonic preferences. Consumer's preferences are considered as monotonic when he/she prefers those bundles for consumption which have at least more of one good and no less of the other good than other consumption bundles.
For example, consider two consumption bundles, bundle A (3, 5) and bundle B (3, 2), then, according to the assumption of monotonic preferences, a consumer will prefer bundle A over bundle B. This is because bundle A has more units of good 2 (i.e.5 units as compared to only 2 units in bundle B) and no less of good 1.
Regards
Consumers are assumed to have monotonic preferences. Consumer's preferences are considered as monotonic when he/she prefers those bundles for consumption which have at least more of one good and no less of the other good than other consumption bundles.
For example, consider two consumption bundles, bundle A (3, 5) and bundle B (3, 2), then, according to the assumption of monotonic preferences, a consumer will prefer bundle A over bundle B. This is because bundle A has more units of good 2 (i.e.5 units as compared to only 2 units in bundle B) and no less of good 1.
Regards