Last year your job at the university cafeteria paid you $8 an hour and the price of a ten minute long distance call to your girlfriend in California was $4. This your cafeteria job pays $8.80 per hour and the ten minute phone call now costs $4.20. You are clearly:.
a. worse off because of inflation.
b. worse off because the phone call is now relatively expensive.
c. better off because your wage rate went up.
d. better off because the phone call now costs less work.