The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk.In 2008, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.In 2009, the price of pizzas went down to $8 each, while the prices of jeans and milk remained the same.Between 2008 and 2009, 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.

Question

Quizplus · Accepted Answer

The cost of living decreased because the price of pizzas, which are part of the family's consumption, decreased. The total cost in 2008 was $10*10 + $40*7 + $3*20 = $100 + $280 + $60 = $440. In 2009, it was $8*10 + $40*7 + $3*20 = $80 + $280 + $60 = $420. The decrease is ($440 - $420) / $440 * 100% = 4.5%.

The Typical Family on the Planet Econ Consumes 10 Pizzas