EASY
12th CBSE
IMPORTANT
Earn 100

What do you mean by 'monotonic preference' ?

Important Questions on Theory of Consumer Behaviour

EASY
12th CBSE
IMPORTANT
If a consumer has monotonic preferences, can she be indifferent between the bundles 10, 8 and 8, 6 ?
MEDIUM
12th CBSE
IMPORTANT
Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9), (9, 9)?
EASY
12th CBSE
IMPORTANT
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic ?
HARD
12th CBSE
IMPORTANT

Suppose there are two consumers in the market for a good and their demand functions are as follows:
d1(p)= 20-p for any price less than or equal to 20, d1(p)=0 at any price greater than 20.
d2(p)= 20-p for any price less than or equal to 20, d2(p)=0 at any price greater than 15.
Find out the market demand function.

HARD
12th CBSE
IMPORTANT

Suppose there are 20 consumers for a good and they have identical demand functions:
dp=10-3p for any price less than or equal to 103 and d1(p)=0 at any price greater than 103.
What is the market demand function?

HARD
12th CBSE
IMPORTANT
Consider a market where there are just two consumers and suppose their demands for the goods are given as follows:
p d1 d2
1 9 24
2 8 20
3 7 18
4 6 16
5 5 14
6 4 12
Calculate the market demand for the good.
 
EASY
12th CBSE
IMPORTANT
What do you mean by a normal good?
EASY
12th CBSE
IMPORTANT
What do you mean by an 'inferior good'? Give some examples.