Q

# 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%

Views

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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