Final answer:
Edna's cost of living increase between time 1 and time 2 can be calculated by finding the percentage increase in the basket of goods she consumes.
Step-by-step explanation:
Edna's cost of living increase between time 1 and time 2 can be calculated by finding the percentage increase in the basket of goods she consumes. To do this, we need the price index for time 1 and time 2. Let's assume the price index for time 1 is 100 and for time 2 is 120. The percentage increase can be calculated using the formula:
Percentage Increase = (Price Index at Time 2 - Price Index at Time 1) / Price Index at Time 1 * 100
Substituting the values, we get:
Percentage Increase = (120 - 100) / 100 * 100 = 20%