If the Total Expenditures of a Typical Family Were $40,000

question 73

Multiple Choice

If the total expenditures of a typical family were $40,000 per year in 2008 and the exact same basket of goods and services cost $45,000 in the year 2012,the family's cost of living

• A) increased by 11.1%.
• B) decreased by 11.1%.
• C) increased by 12.5%.
• D) decreased by 12.5%.
• E) was unchanged.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, typically sloping upward.

Cotton Crop

Cotton crop refers to the cultivation of cotton plants for the harvesting of cotton fibers, which are used in the textile industry.

Pesticides Resistant

The ability of pests to withstand or overcome the effects of pesticides due to genetic mutations or adaptations, leading to a decrease in the effectiveness of the pesticides.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.