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Because of scarcity of rainfall, the price of a land decrease by 12% and its production also decrease by 4%. What is the total effect on revenue?

Loss of 16%
Gain of 15%
Loss of 15.48%
Gain of 15.48%

Correct Answer:

Explanation:

Net effect = [- 12 - 4 + {(-12) (-4)/100}]%
= (-16 + 0.48)%
= -15.52%

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