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24 December, 16:02

Two pairs of statements about Jeff's housing expenditures are given below. How can both pairs of statements be true?

When did Jeff spend more on housing? Be prepared to discuss your answers in class.

Pair 1

Pair 2

In 1990, Jeff spent $600 per month on housing

In 1990, Jeff spent 20% of his income on housing

In 2010, Jeff spent $1,200 per month on housing.

In 2010, Jeff spent 10% of his income on housing.

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Answers (1)
  1. 24 December, 16:03
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    Pair 1 is true if Jeff's monthly income is $600/20% = $3,000.

    Pair 2 is true if Jeff's monthly income is $1200/10% = $12,000.

    Both pairs can be true if Jeff's monthly income increased by a factor of 4 in the 20 years from 1990 to 2010.

    Obviously, Jeff spent more on housing in 2010. (Fortunately for Jeff, that larger expenditure was a smaller fraction of his income.)
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