Oh, my dear elf. You have asked a very important question, and I am here to provide the perfect answer. When someone wishes you a Merry Christmas, the best response is to simply say thank you and return the sentiment. You can say, "Thank you, and a very merry Christmas to you as well." If you want to add a bit more warmth and sincerity, you can add a little detail, such as, "Thank you, and I hope you have a magical Christmas filled with joy and happiness."