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The tax on a commodity is diminished by 15% and its consumption increased by 10%. Find the decrease percent in the revenue derived from it.

The tax on a commodity is diminished by 15% and its consumption increased by 10%. Find the decrease percent in the revenue derived from it.

  • Option 1)

    6.5%

  • Option 2)

    8.33%

  • Option 3)

    9.11%

  • Option 4)

    7.4%

  • Option 5)

    5.2%

Answers (1)
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Let tax on commodity be x , Consumption = y

Initial = xy

Final = x\left ( \frac{85}{100} \right )y\left ( \frac{110}{100} \right )=xy\left ( \frac{187}{200} \right )

% decrease = Initial - final

xy\left ( 1-\left ( \frac{187}{200} \right ) \right )\times 100=6.5\, \, ^{0}/_{0}

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