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The tax on a commodity is diminished by 10% and its consumption increases by 10%. Find the effects on revenue.

A Increases by 2%

B Decreases by 1%

C Increases by 1%

D Decreases by 2%

Solution

Correct Answer: Option B

শতকরা পরিবর্তন = -10% + 10% - (10 x 10)/100%
= -10% + 10% - 1%
= -1%

∴ শতকরা ক্ষতি = 1%

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