Question

scenario 3: food prices increase
food prices rise by 15% due to supply chain issues.

1. original food cost: $300

1. new food cost:

updated monthly total:

reflection question:
was it harder or easier to adjust to higher food
prices compared to entertainment prices? why?

Explanation:

For calculating the new food cost:

Step1: Find the increase amount

To find the increase, we calculate 15% of the original cost. The formula for percentage increase is $\text{Increase} = \text{Original Cost} \times \text{Percentage Increase}$. So, $300 \times 0.15 = 45$.

Step2: Calculate the new cost

The new cost is the original cost plus the increase. So, $\text{New Cost} = \text{Original Cost} + \text{Increase} = 300 + 45 = 345$.

Food is a necessity (people need it to survive), while entertainment is discretionary (optional). Adjusting to higher food prices is harder because people can't easily cut food expenses as much as entertainment (e.g., skip a movie but can't skip meals).

Answer:

New food cost: $\$345$

For the reflection question (using Answer-Explanation Format):