What must be true about the relationship between A and F?

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BlackTom AI · Accepted Answer

The question asks about the relationship between A and F and what must be true.
Option a: 'The consumer is indifferent between the two goods.' Indifference would mean the consumer derives the same satisfaction from both A and F, so their preferences would be equal. However, if the correct choice indicates a strict preference, this option would be inconsistent with a strict ranking.
Option b: 'The consumer strictly prefers A to F.' This would mean A is preferred over F, contradicting the scenario implied by the provided answer data that points toward F being preferred. If the intended relationship is F over A, this statement would be false.
Option c: 'The consumer strictly prefers F to A.' This expresses a clear, non-tied ranking where F is favored over A. In many microeconomics contexts, a strict preference like this rules out indifference and reverses any claim that A is preferred. This aligns with the typical interpretation of a definitive, stronger liking for F over A.
Option d: 'There is not enough information to know how the consumer compares the two goods.' This would be true only if the data were insufficient to determine a relation. If the problem provides a clear indication of preference (as it often does in these questions), this option would be unnecessarily conservative and would not fit a scenario aiming to identify a definite ranking.
In summary, option a would imply equal utility, option b asserts the opposite of the favored direction, option c asserts a clear, strict preference toward F, and option d claims insufficient information. The interpretation that best matches a definite, strict preference toward F over A is captured by option c, which specifies F is preferred to A rather than any alternative relationship.

ECC2000 - ECC5900 - S2 2025 ECC2000/5900 Mid-Semester Test - Quiz - 8 September 2025, opens 2pm (Melbourne, Australian time) duplicate

What must be true about the relationship between A and F?

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