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 preceding statements is correct.

Question

Quizplus · Accepted Answer

Since the consumer has a gift certificate, they will have an extra budget to purchase goods from store X. As all items in store X are normal goods, the consumer will prefer to consume more goods in store X with the given gift certificate. Therefore, the correct choice is A, more goods in store X.

If a Consumer Is Given a $10 Gift Certificate Good