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Necessity and Sufficiency (Economics)

Necessary and Sufficient Conditions

We use the concept of necessary and sufficient conditions to help us describe relationships between statements.

Necessary Condition

Suppose that A and B are statements. We say that the statement A is necessary for the statement B if B cannot be true unless A is also true. In other words, B requires A. However it is possible for A to be true even if B is not true. We write

AB For example, suppose A is the statement “you sit the exam” and B is the statement “you pass the exam”. You cannot pass the exam without sitting the exam: sitting the exam is a necessary condition for passing the exam. However sitting the exam does not mean that you will necessarily pass the exam.

Sufficient Condition

The statement A is said to be a sufficient condition for the statement B if knowing that A is true guarantees that B is also true. However knowing that B is true does not guarantee that A is true. That is, B needn't be a sufficient condition for A. We write AB For example, suppose A is the statement “you achieve an overall grade of over 70% in all of the modules that you have studied as part of your economics degree” and B is the statement “you get a first class degree in economics”. Achieving an overall grade of over 70% in all of the modules that you have studied as part of your economics degree means that you will get a first class in economics economics. However, getting a first class degree in economics does not necessarily mean that you achieved a first in all of your economics modules.

Necessary and Sufficient Condition

We say that the statement A is a necessary and sufficient condition for the statement B when B is true if and only if A is also true. That is, either A and B are both true, or they are both false. Note that if A is necessary and sufficient for B, then B is necessary and sufficient for A. We write AB. For example, the statement “I am a male sibling” is necessary and sufficient for the truth of the statement “I am a brother”.

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