Bundle P has 5 units of each good and bundle Q has 6 units of good 1 and 5 of good 2. With monotonic preferences,

P and Q lie on the same indifference curveCorrect answerYour answerP is preferred to QCorrect answerYour answernothing can be said without pricesCorrect answerYour answerQ is preferred to P, so Q lies on a higher indifference curveCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Q has more of good 1 and the same of good 2.
Monotonic preferences rank it higher, so it is on a higher indifference curve.

Concept: Ranking bundles with monotonic preferences
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsIndifference curves and MRS

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Bundle P has 5 units of each good and bundle Q has 6 units of good 1 and 5 of good 2. With monotonic preferences,

Explanation