Consumers do not prefer gifts-in-kind to cash gifts. What will be an

Consumers do not prefer gifts-in-kind to cash gifts.

What will be an ideal response?

ANSWER

True. It is possible the consumer would buy the same gift with cash and therefore be just as well off. If the consumer bought something other than the gift, that means that this something else is preferred to the gift. At best, the gift yields the same utility as would have been achieved with the cash, but never more.