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)less goods in store X.
C)the same amount of goods in store X.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Since the consumer has a $10 gift certificate that can only be used at store X, they will be incentivized to consume more goods in store X in order to fully utilize the gift certificate. Therefore, the consumer desires to consume more goods in store X.

If a Consumer Is Given a $10 Gift Certificate, Good