Question

The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2004 pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon. In 2005, the price of pizzas increased to $14 each, while the price of jeans and milk remained the same. Between 2004 and 2005, a typical family's cost of living:
A. increased by 4.5 percent.
B. decreased by 4.5 percent.
C. remained the same.
D. decreased by 20 percent.

Answer 1

Answer:

Between 2004 and 2005, a typical family's cost of living increased by 9%

Explanation:

In 2004, a family consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk with pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.

Therefore in 2004, the money spent by the family = ($10 × 10) + ($40 × 7) + ($3 × 20) = $100 + $280 + $60 = $440

In 2005, the family consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk with pizzas cost $14 each, jeans cost $40 per pair, and milk cost $3 per gallon.

Therefore in 2005, the money spent by the family = ($14 × 10) + ($40 × 7) + ($3 × 20) = $140 + $280 + $60 = $480

Therefore between 2004 and 2005, the money increased from $440 to $480.

The percentage increase between 2004 and 2005 = $\frac{480-440}{440} *100=\frac{40}{440} *100$ = 9%

Between 2004 and 2005, a typical family's cost of living increased by 9%

Answer 2

Answer:

Increased 9.1%

Explanation:

Change in cost of living can be determined by calculating the changes in total cost of living from 2004 to 2005 due to the change in the cost of pizza

Cost of living in 2004 = (10×$10) + (7×$40) +(20 × $3) = $440

Cost of living in 2005 = (10 × $14) + (7 × $40) + (20 × $3) = $480

Change in cost of living =( $480/440) - 1 = 0.09091

I hope my answer helps you