Maya spends her $50 budget on two goods, cans of tuna and bottles of ginger ale. Initially, the marginal utility per dollar she spends on tuna is equal to the marginal utility per dollar she spends on ginger ale. Then the price of ginger ale decreases, while her income and the price of tuna do not change. Briefly explain whether each of the following statements about what happens as a result of the decrease in the price of ginger ale is true or false.
a. Her marginal utility from consuming ginger ale increases.
b. The marginal utility per dollar she spends on ginger ale increases.
c. Because of the substitution effect, Maya will buy more ginger ale. Therefore, we can conclude that ginger ale is a normal good.
d. As Maya adjusts to the change in the price of ginger ale, her marginal utility per dollar spent on tuna will increase.