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A student spends all of her income on pizza and books. When pizzas cost $3 each and books cost $10 each, she consumed 30 pizzas and 3 books per month. The price of pizzas fell to $2.90 each while the price of books rose to $11 each.
A. the price change a. made her worse off.
B. left her exactly as well off as before.
C. left her at least as well off as before and possibly helped her.
D. might have helped her, might have harmed her. We can’t tell which unless we observe what she consumed after the price change.
E. had the same effect as a $3 increase in her income.
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