How much percent revenue increase or decrease? If

The tax on a commodity is decreased by 10% and thereby its consumption increase by 8%. Then the increase/decrease percent in the revenue derived from it is

  1. 2.8% increase
  2. 2.8% decrease
  3. the same as before
  4. None of the above
Monis Rasool Professor Asked on 14th November 2015 in Maths.
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  • 1 Answer(s)

    Answer: (2) 2.8% decrease

    Explanation: –
    Let the revenue be = 100
    decreased by 10 %
    Then, the revenue = 100 – 100 x 10/100
    = 100 – 10
    = 90

    Increased by 8 %
    Then, the revenue = 90 + 90 x 8/100
    = 90 + 7.2
    = 97.2
    Then, the revenue derived = 100 – 97.2
    = 2.8% decreased

    Hence, the answer is (2) 2.8% decrease.

     

    Anurag Mishra Professor Answered on 14th November 2015.
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