A consumer has monotonic preferences. Bundles (bananas, mangoes) A (2, 8) and B (3, 6) lie on IC1; C (3, 8) and D (4, 7) lie on IC2; and E (5, 9) lies on IC3.
Which of the following statements are correct?
(A) She prefers E to D.
(B) She is indifferent between A and C.
(C) She prefers B to D.
(D) She prefers D to B.
(E) She prefers C to A.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (D) and (E) only
Under monotonic preferences, a bundle with more of at least one good and no less of the other is preferred. Bundles on one curve are equally good, and a higher curve is preferred.
(A) She prefers E to D. — Correct. E (5, 9) has more of both goods than D (4, 7).
(B) She is indifferent between A and C. — Incorrect. C (3, 8) has one more banana and the same mangoes as A (2, 8), so she prefers C.
(C) She prefers B to D. — Incorrect. D (4, 7) has more of both goods than B (3, 6).
(D) She prefers D to B. — Correct. D has more of both goods.
(E) She prefers C to A. — Correct. C has more bananas and no fewer mangoes.
NCERT (2026-27): “Monotonic Preferences Consumer’s preferences are assumed to be such that 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 (x1, x2) to (y1, y2). Preferences of this kind are called monotonic preferences. …” “Indifference Map … All points on an indifference curve represent bundles which are considered indifferent by the consumer. Monotonicity of preferences imply that between any two indifference curves, the bundles on the one which lies above are preferred to the bundles on the one which lies below.” |