If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in
A)a greater quantity sold than before the customer is given a gift certificate.
B)a greater quantity sold than if the customer resorts to giving a cash gift.
C)the same quantity sold than before the customer is given a gift certificate.
D)the same quantity sold as if the customer resorts to giving a cash gift.

Question

Quizplus · Accepted Answer

Offering gift certificates may attract customers who are looking for a convenient and hassle-free gift option. If the customer resorts to giving a cash gift, they may not choose to purchase an inferior good from your store. Therefore, offering gift certificates may result in a greater quantity sold than if the customer gives a cash gift.

If You Sell an Inferior Good, Offering to Sell Gift