Answer to Question #184473 in Microeconomics for Anika Fairuz

Question

How do the assumption or axioms of monotonicity and convexity contribute to give us a well behaved preferences ?

Answer 1

Regarding monotonicity, focus is normally about goods not bads. This implies more of a good tend to be normally better compared to the less of it. Generally, It is assumed that effectively behaved preferences tend to be convex since for the most part, goods are consumed together.

Clients may need to trade a some of the goods for another one and end up consuming all goods instead of focusing on one product.