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

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BlackTom AI · Accepted Answer

The question asks what must be true about the relationship between E and F given the options.
Option a: 'There is not enough information to know how the consumer compares the two goods.' This would be true in a situation where we lack any revealed preference or utility information. Since the prompt provides a specific answer choice stating a strict preference, we would need to assess whether any other information is implied. If there is enough information to determine a strict preference, then this option is incorrect. If not, it would be the correct one, but the given answer evidence suggests there is a defined relationship.
Option b: 'The consumer strictly prefers F to E.' This asserts a definite ranking where F is chosen over E in every comparable situation. If the problem indicates F is preferred to E, this aligns with a strict preference. This would be false only if there were reasons to think the consumer prefers E to F or is indifferent. Given the supplied answer text, this option expresses a clear, uncompromising ranking, which matches a scenario where the consumer has a consistent preference for F.
Option c: 'The consumer strictly prefers E to F.' This would mean E is always chosen over F. This contradicts the option that states F is preferred in a strict sense, and would be incorrect if the intended relationship is F over E. Misconceptions here would involve flipping the order of preference without additional justification.
Option d: 'The consumer is indifferent between the two goods.' Indifference would mean neither good is preferred over the other; the consumer would value E and F equally. This would be incompatible with a statement claiming a strict preference of F over E, and would be incorrect if the data imply a clear preference rather than equality.
In summary, option a hinges on whether enough information exists to compare E and F; option b asserts a strict, unambiguous preference for F over E; option c claims the opposite strict preference; and option d asserts indifference. The provided choice text indicates a definite preferential relationship in which F is strictly preferred to E, ruling out indifference or the reverse strict preference, and leaving the only viable interpretation as a strict preference for F over E.

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 E and F?

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