Dave, a Student Who Knits Ski Caps with Tassels, Sells

Multiple Choice

Dave, a student who knits ski caps with tassels, sells the same number of caps this year as last year, but at 20 percent higher prices. What can we conclude?

A) He must be better off than last year because his income is higher.
B) We do not have enough information to tell whether he is better off this year than last year.
C) He cannot be better off than last year because he sold the same number of caps both years.
D) He is better off this year only if there was no inflation over the past year.