Q.Suppose your friend is indifferent to the bundles and . Are the preferences of your friend monotonic?
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Start your 14-day free trial to unlock the full solution →Monotonic preferences require that more of at least one good (with no less of the other) is strictly preferred. Since your friend is indifferent between and — bundles where the second has strictly more of one good — the preferences violate monotonicity.
Understanding Monotonic Preferences
Monotonicity is one of the foundational assumptions about rational consumer behavior. It captures a simple intuition: if you give someone more of something they value (or at least don't dislike), without taking anything else away, they should be better off — or at the very least, no worse off.
Formally, preferences are monotonic if whenever bundle contains at least as much of every good as bundle , and strictly more of at least one good, then the consumer strictly prefers to . In symbols, if and with , , and at least one inequality strict, then (A is strictly preferred to B).
The economic reasoning is straightforward: goods are desirable. A consumer who obeys monotonicity never throws away free goods; more is always weakly better, and strictly more of something (holding everything else constant) is strictly better.
Applying the Test to Your Friend's Preferences
Now look at the two bundles your friend is considering:
- Bundle : 5 units of good 1, 6 units of good 2
- Bundle : 6 units of good 1, 6 units of good 2
Compare them component by component. Bundle has one more unit of good 1 than (6 versus 5), while the quantity of good 2 is identical in both (6 units). So contains everything has, plus an extra unit of good 1.
If your friend's preferences were monotonic, she should strictly prefer to — after all, she's getting more of good 1 at no cost to good 2. But the question tells us she is indifferent between the two bundles: . She views them as equally desirable. …
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