Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?
As per monotonic preference, the bundles should be ranked as below –
Rank | Bundle | Reason |
1 | (10,10) | As it has maximum quantity of both commodity |
2 | (10, 9) | As it has more quantity of commodity1 |
3 | (9, 9) | As it has minimum quantity of both commodity |