Question

Thinking Critically and Solving Problems

Answer 1

The correct answer is D. As their incomes rise, people spend more on food, but it represents a smaller portion of their income.

The graph shows the relationship between "food spending and percent of income spent on food". In the left part, it shows the values ​​of "Average annual food spending ($) that go from 0 to 16,000. In the right part, it shows the values ​​of Percent of income spent on food" that go from 0 to 35. In the part below, five "income quintiles" are shown.

The first (lowest) quintile spends about $ 4,000 per year on food, which is 35% of income.

The second quintile spends about $ 6,000 per year on food, which is about 18% of income.

The third quintile spends about $ 7,000 per year on food, which is about 12% of income.

The fourth quintile spends a little less than $ 10,000 per year on food, which is about 10% of income.

The fifth (highest) quintile spends a little less than $ 14,000 per year on food, which is about 7% of income.

According to the above information, the reader can establish that people who have more income spend more on food. However, this represents a lower percentage of their total income. For example, people who spend just under $ 14,000 on food are spending about 7% of their income, while people who spend about $ 4,000 per year on food are spending 35% of their income. According to the above, the correct answer is D. As their incomes rise, people spend more on food, but it represents a smaller portion of their income.