Mathematics
NULL
Medium
Question
Tax on a commodity falls 20% and consumption rises 15%. What is the effect on revenue?
A
It increases by 8%
B
It decreases by 8%
✓ Official correct answer
C
No change in revenue
D
It increases by 10%
Community credibility
Registered members can vote for the answer they believe is correct today and explain why. If the facts change after an election or news event, suggest a new option so others can vote it up.
A
It increases by 8%
No member explanations yet for this option.
B
It decreases by 8%
No member explanations yet for this option.
C
No change in revenue
No member explanations yet for this option.
D
It increases by 10%
No member explanations yet for this option.
Explanation
Revenue factor = 0.8 × 1.15 = 0.92 ⇒ revenue decreases by 8%.