Multiple Choice
Joe consumes 10 units of food and 12 units of clothing.Since food is an inferior good, a gift to Joe of a $12 gift certificate at a clothing store will
A) induce Joe to eat more than 10 units of food.
B) make Joe better off than a gift of $12 in cash.
C) make Joe worse off than a gift of $12 in cash.
D) none of the statements associated with this question are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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