If a consumer states that he is indifferent between receiving a gift certificate for $10 at the local bookstore and receiving $10 cash, we can infer that this consumer:
A)would spend less than $10 at the bookstore.
B)would spend at least $10 at the bookstore.
C)would spend more than $10 at the bookstore.
D)would spend exactly $10 at the bookstore.

Question

Quizplus · Accepted Answer

If the consumer is indifferent between receiving a $10 gift certificate for the local bookstore and receiving $10 cash, it suggests that they would spend at least $10 at the bookstore. If they were likely to spend less than $10, they would prefer to receive the cash so that they could spend it elsewhere.

If a Consumer States That He Is Indifferent Between Receiving