n 2001 the average family in Econoville had disposable income of $20,000. This average family spent $12,000 on food, $4,000 on housing, and $4,000 on all other goods. in the next year the average family's income increased to $22,000 and prices increased by 10% for food, 5% for housing and 5% for all other goods. Using 2001 as the base year, the inflation rate between 2001 and 2002 was ________ and the average family's standard of living _______.

8%; fell

8%; increased

6.67%; remained unchanged

6.67%; increased

This question can't be answered without knowing the prices in the base year.