Practice Monotonic Preferences (2.1.2.4) - Theory of Consumer Behaviour

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6 sample questions

Question 1.
Define monotonic preferences.
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Think about how consumers make choices.
Question 2.
What does an indifference curve represent?
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Think of it as a level of satisfaction analogy.
3Question 3.
What happens to consumer preferences when a bundle has more of at least one good?
- They prefer it
- They are indifferent
- They dislike it
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Think about how choices reflect consumer satisfaction.
4Question 4.
Is the statement true or false? 'Two indifference curves can intersect.'
- True
- False
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Reflect on how preferences are organized.
Question 5.
If a consumer has the choice between bundles (5 bananas, 7 mangoes) and (6 bananas, 6 mangoes), which will they choose based on monotonic preferences and why?
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Focus on the quantity of each good.
Question 6.
Draw and label indifference curves for a consumer who prefers apples and oranges. Describe how you would illustrate monotonic preferences.
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Consider how preferences rank.

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