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) a smaller quantity sold than before the customer is given a gift certificate.
D) a smaller quantity sold than if the customer resorts to giving a cash gift.

Question

Quizplus · Accepted Answer

Offering gift certificates may encourage customers to purchase the inferior good as a gift, rather than resorting to giving cash. This can result in a greater quantity sold compared to if the customer gave a cash gift.

If You Sell an Inferior Good,offering to Sell Gift Certificates