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What are ‘monotonic preferences’? Explain with the help of an example. 

Answer»

Monotonic preferences- A consumer preferences are said to be monotonic if and only if, between any two bundles of the two goods, he prefers that bundle which has at least more quantity of one good but no less of other good.

Example - If bundle A (3,5) and bundle B (3,2) are available to the consumer, then consumer will prefer bundle A over bundle B as bundle A consists of more units of good 2 than bundle B.



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