Q154
The tax imposed on an article is decreased by 10% and its consumption is increased by 10%. Find the percentage change in revenue from it.
A.
10% increase
B.
2% decrease
C.
1% decrease
AnswerD.
11% increase
Answer: Option C
Solution
Answer: Option C
Solution:
Net % effect on revenue= - 10 + 10 -
= - 1
Hence % reduction in revenue = 1%