Question

In a town water tax is increased by 20%and the consumption of water is decrease by 20% what is effect on revenue from water tax​

Answer 1

Answer:

assume total amount is 100

increased tax = 100+20 = 120

decrease in consumption = 100-20 =80

total amount 100*100 = 10000

after change 120*80 = 9600

(10000-9600/10000)*100 = 4 % decrease

Answer 2

Answer:

let us assume , our consumption is 1 liter and we pay 100rs for it..

Now, Water tax is increased by 20%. So, now 1 liter = 120 rs..

also consumption is decreased by 20 %. So, (1 liter* 20 /100)= 1 * 1/5=0.20.

So, We get 0.80 liter water now..and with new tax price pr liter is 120.

So, 120 * 80/100 = 96 rs..!!!

0.8 liter = 96 rs..!!

so finally ( 100 - 96 )= 4 rs ..

4 % decrease in expenditure.