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%

Practice More Questions on Our App!

Download our app for free and access thousands of MCQ questions with detailed solutions