Question

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Example 21. The duty on a commodity is reduced by 15%. Consequently it's consumption increased by 10% . Find it's effect on receipt of revenue
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Answer 1

Answer:

The tax on commodities is diminished by 15%, and it's consumption increases by 10%. What is the decreased percentage in the revenue?

Invest INR 18000 per month and get INR 2 crores after retirement.

General formula of revenue of a company=no.of consumption * tax on each commodity

=> Revenue=comsumption*tax

Lets say

No of consumption=100 And Tax=100

Total revenue =100*100=10000

Now

Tax decreased by 15%=100–15=85

Consumption increased by 10%=100+10=110

New revenue=110*85=9350

Old revenue=10000

Therefore there is a loss in the revenue.

But how much %=?

10000———came down to——-9350

Total loss=10000–9350=650

Total loss in percentage=650/100