Suppose a consumer’s preferences are monotonic (i.e. we can safely assume monoto

Question

Suppose a consumer’s preferences are monotonic (i.e. we can safely assume monotonicity). The figure below shows several potential bundles graphically. If we assume that a consumer’s preferences are monotonic (i.e. we can safely assume monotonicity), what can we say about the relationships between the different bundles? Compare the following bundles. Use the symbol ? for strictly preferred, ? for weakly preferred, ? for indifference, and ? if we cannot say anything about the relationship.

Explanation / Answer

A<B, A is weakely preffered to B

A D, Cannot say anything

A<D, Ais weakely preffered to C

A F, Cannot say anything

B D, Cannot say anything

B<C , B is weakely preffered to C

B F , Cannot say anything

C D, Cannot say anything

C F, Cannot say anything

D F, Cannot say anything

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