Practicing Success
Practicing Success
CUET Preparation Today
| The concept of monotonicity states that if between any two bundles (x1, x2) and (y1, y2), if (x1, x2) has more of at least one of the goods and no less of the other good compared to (y1, y2), then the consumer prefers |
(y1,y2) to (x1,x2) (x1, x2) to (y1, y2) (x1,y1) to (x2,y2) (x2, y2) to (x1,y1) |
| (x1, x2) to (y1, y2) |
| Consumers preferences are monotonic if and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle. |
