If a consumer is given a $10 gift certificate, good for items in store X and all items in store X are inferior goods, then 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

If all items in store X are inferior goods, then the consumer's demand for these goods will decrease as their income (represented by the value of the gift certificate) increases. Therefore, the consumer will desire to consume less goods in store X with the $10 gift certificate.

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