Preferences are said to be monotonic if
A)all goods must be consumed in fixed proportions.
B)all goods are perfect substitutes.
C)more is always preferred to less.
D)there is a diminishing marginal rate of substitution.
E)None of the above.

Question

Quizplus · Accepted Answer

Monotonic preferences mean that more of a good is always preferred to less, regardless of the level of consumption of other goods. This is captured by choice C, as it expresses the idea of a constant desire for more goods. Choices A, B, and D describe specific types of preferences that may or may not be monotonic.

Preferences Are Said to Be Monotonic If