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:

Answer 1

decreased by 4.5%

Step-by-step explanation:

A family 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.

The family's total cost of living in 2016 is:

`C_(2016) = 10*\$10 +7*\$40 +20*\$3\\C_(2016) = \$440`

In 2017, pizzas cost $8 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2017 is:

`C_(2017) = 10*\$8 +7*\$40 +20*\$3\\C_(2016) = \$420`

The change, in percentage, of a typical family's cost of living is:

`R=(C_(2017)-C_(2016))/(C_(2016)) \\R=(420-440)/(440) \\R=0.045\ or\ 4.5\%`

The cost of living decreased by 4.5%