If the total expenditures of a typical family were $35,000 per year in 2008 and the exact same basket of goods and services cost $40,000 in the year 2012,the family's cost of living
A) increased by 14%.
B) decreased by 14%.
C) increased by 12.5%.
D) decreased by 12.5%.
E) was unchanged.

Question

Quizplus · Accepted Answer

The cost of living increased by 14% because the cost of the same basket of goods and services increased from $35,000 to $40,000.

If the Total Expenditures of a Typical Family Were $35,000