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:

Part 1: Calculating New Food Cost

Step1: Find the increase amount

To find the increase, 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: Add increase to original cost

The new cost is the original cost plus the increase. So, $300 + 45 = 345$.

Adjusting to higher food prices is often harder than entertainment prices. Food is a necessity (required for survival, daily sustenance), so people have less flexibility to cut back or substitute. Entertainment is discretionary (optional, like movies or concerts), so reducing entertainment spending is easier as it’s not essential for basic living.

Answer:

New food cost: $\$345$

Reflection Question (Answer-Explanation Format)