Use the Information Below to Answer the Following Questions

question 20

Multiple Choice

Use the information below to answer the following questions.
Fact 9.3.1
Marc has an income of $20 and spends it on two goods, root beer (measured on the vertical axis) and chips (measured on the horizontal axis) .The price of root beer is $1 a can.The price of chips is $0.50 a bag.Initially, Marc chooses to consume 10 cans of root beer and 20 bags of chips.Then the price of root beer rises to $1.50 per can and the price of chips falls to $0.25 a bag.
-Refer to Fact 9.3.1.When the price of a bag of chips falls,Marc

• A)will consume more beer, more chips, and be better off.
• B)will consume less beer, more chips, and be better off.
• C)will consume less beer, more chips, and be worse off.
• D)will consume less beer, less chips, and be worse off.
• E)consume more beer, less chips, and be better off.