A consumer who is unable to detect small differences in the amount of water in her beer could have a transitive strict preference relation but is unlikely to have a transitive indifference relation.

Question

Quizplus · Accepted Answer

A transitive strict preference relation implies that the consumer can rank different options in order of preference. However, a transitive indifference relation means that the consumer is unable to distinguish any differences between the options, which is not the case in the scenario given.

A Consumer Who Is Unable to Detect Small Differences in the Amount