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Percentage
The tax on an article decreases by 10% and its consumption increases by 10%. Find the effect percent on its revenue?
10% increase
2% decrease
1% decrease
11% increase
Correct Answer:
1% decrease
Explanation:
Net % effect on revenue = - 10 + 10 -(10×10)/100 = - 1 Hence % reduction in revenue = 1%
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