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 increased to $14 each, while the price of jeans and milk remained the same.Between 2008 and 2009, a typical family's cost of living:
A)increased by 9 percent.
B)decreased by 9 percent.
C)remained the same.
D)increased by 40 percent.

Question

Quizplus · Accepted Answer

The cost of living increased by 9 percent because the price of pizzas increased, affecting the total expenditure. The cost in 2008 was $10*10 + $40*7 + $3*20 = $330. In 2009, it was $14*10 + $40*7 + $3*20 = $360. The increase is ($360 - $330) / $330 * 100% = 9.09%.

The Typical Family on the Planet Econ Consumes 10 Pizzas