If a consumer is given a $10 gift certificate good only for items in store X, and all items in store X are normal goods, then the consumer desires to consume:
A) more goods in store X.
B) fewer goods in store X.
C) the same amount of goods in store X.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

The $10 gift certificate provides an increase in purchasing power for the consumer in store X, which will incentivize them to consume more goods in store X.

If a Consumer Is Given a $10 Gift Certificate Good