Joe consumes 48 units of food and 12 units of clothing. If food is an inferior good:
A. Joe would strictly prefer receiving $10 in cash to receiving a $10 gift certificate at a clothing store.
B. Joe would strictly prefer receiving a $10 gift certificate at a clothing store to receiving $10 in cash.
C. upon receiving a $10 gift certificate at a clothing store, Joe would consume less clothing and more food.
D. Joe would be indifferent between receiving a $10 gift certificate at a clothing store and receiving $10 in cash.
Answer: A
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