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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