A Farmer Produces the Same Output in 2007 as in 2006

Multiple Choice

A farmer produces the same output in 2007 as in 2006. His input prices increase by 50 percent, but so does his product price. What can we conclude?

A) The farmer is better off in 2007.
B) The farmer was better off in 2006.
C) The farmer is equally well off in 2007 as in 2006.
D) We cannot tell whether the farmer is better off in 2007 or in 2006 without additional information.