From 1965 to 1988, spending on food in the United States

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From 1965 to 1988, spending on food in the United States climbed 46 percent. But over that same period, spending on food to be consumed at home - purchased mainly from supermarkets - grew by only 20 percent.

Which of the following statements about the period from 1965 to 1988 in the United States is best supported by the statements above?

(A) Spending on food increased at restaurants and other food retailers that prepare food to be consumed away from home.
(B) Shoppers spent more on certain food products to be consumed at home that are not generally available in supermarkets.
(C) Food prices at supermarkets neither rose nor dropped relative to food prices at other food retailers.
(D There was a decrease in the number of heads of households, who tend to spend more than other household members on food consumed away from home.
(E) The number of people who ate at restaurants decreased relative to the number of people who ordered take-out food from restaurants.

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by deloitte247 » Thu Jul 19, 2018 1:33 pm

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Option A - CORRECT.
From the statistics provided it is stated that from 1965-1988 spending on food climbed 46% meanwhile, spending on food to be consumed at home purchased mainly from supermarkets grew by only 20%. This means that spending on foods increased at restaurant and other food retailers that prepare food to be consumed away from home by 26%. Therefore, this assumption is based on the fact that most people in the united states prefer to eat out rather than take home since cooking at home may cost more and eating out might reduce cost of purchasing ingredients needed for cooking at home.

Option B - INCORRECT.
The statement in this option is one or topmost reason why take home foods are not considered during this period. Due to the high cost of take home foods that are not available in supermarkets , shoppers prefer to eat out than take home.

Option C - INCORRECT.
Considering the difference in percentage of food taken outside home and take homes, it is obvious that food prices at supermarkets to be taken home was almost relative to food prices at other food retailers to be taken there. However, most people chooses to eat out than take home.

Option D- INCORRECT.
This is an assumption that most head of house prefer to eat out rather than take home considering the price difference.

Option E - INCORRECT.
Considering the statistics during this period, the number of people who ate at restaurant increased compared to those that take home.