Question

The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon. In 2017, the price of pizzas went down to $8 each, while the prices of jeans and milk remained the same. Between 2016 and 2017, 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:

The correct option is B. decreased by 4.5 percent.

Step-by-step explanation:

Consider the provided information.

The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016,

In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.

Cost of living in 2016 = 10×$10+7×$40+20×$3

                                   = $100+$280+$60

                                   = $440

In 2017, the price of pizzas went down to $8 each, while the prices of jeans and milk remained the same.

Cost of living in 2017 = 10×$8+7×$40+20×$3

                                   = $80+$280+$60

                                   = $420

Change in cost of living is:

$\frac{420-440}{440}\times100=-4.54\%$

Here minus sign represents decreased.

Hence the cost of living is decreased by 4.5 percent.

Therefore, the correct option is B. decreased by 4.5 percent.