Lorraine consumes x and y. The price of x is $8 and the price of y is $16. Lorraine's only source of income is her endowment of 7 units of x and 7 units of y

which she can buy or sell at the going prices.

She plans to consume 9 units of x and 6 units of y. If the prices change to $6 for x and $12 for y:

Lorraine will be worse off only if she had been selling x and buying y.

Lorraine will be better off.

Lorraine will be worse off.

Lorraine will be neither better off nor worse off.

Lorraine will be better off only if she had been selling x and buying y.

Which is correct?

Please show all steps.