Some Parents Struggling with Back-To-School Buys

Multiple Choice

Some parents struggling with back-to-school buys. "A couple of years ago, I was able to buy everything practically new," said Charles Lane-Bey, a U.S. Postal Service worker who's struggling to make ends meet. Suppose Charles has $10 to spend on back-to-school clothing for his son, and pants cost 50 cents and the price of shirts has decreased from $1 to 50 cents. What is the effect of the fall in price of shirts on Charles's real income in terms of pants?

A) It increases from 10 to 20.
B) It decreases from 10 to 5.
C) It does not change.
D) It increases from 20 to 40.