Water tax is increased by 30% but its consumption is decreased by 20%.
Then, the increase or decreased in the expenditure of the money is
Answers
Answer: The correct answer is a 4 % increase.
Step-by-step explanation:
Step 1: Given data
Increase in water tax = 30%
Decrease in consumption = 20%
Step 2: Find Expenditure
Let initial water tax be x, initial consumption be y
Expenditure, E = Cost X consumption
new Water Tax = x+ 0.3x = 1.3x
new consumption = y - 0.2y = 0.8y
Therefore Expenditure E' = 1.3x X 0.8y = 1.04xy
E'-E = 1.04xy - xy = 0.04
Therefore expenditure increases by 4 percent.
Answer:
The expenditure of the money decreased by 4%.
Step-by-step explanation:
given that : Water tax is increased by 20% but its consumption is decreased by 20%.
let, the expenditure of the water consumption be Rs. y and the tax imposed is x%.
tax to be paid is = Rs. (x/100 × y) = xy / 100
new tax to be paid now, x × 120 / 100 = (12x / 10)%
and the new expenditure = Rs. y × 80 / 100 = Rs. 4y / 5
new tax = Rs. (12x /1000) × 4y / 5
new tax = Rs. 24xy / 2500
so, change in the tax is = old - new tax imposed
= xy / 100 - 24xy / 2500
= xy / 2500
the percentage change is = (change/original) × 100
= xy / 2500 / xy / 100 ×100
= 4% decrease because the new tax is less than the original tax.
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