general math MCQ #226

The tax on a commodity is diminished by 20% and its consumption increased by 15%. The effect on revenue is_________?

general math MCQ #226

  1. Question 1

    Q1. The tax on a commodity is diminished by 20% and its consumption increased by 15%. The effect on revenue is_________?

    • A) It increases by 8%
    • B) It decreases by 8%
    • C) No change in revenue
    • D) It increases by 10%

    Answer: It decreases by 8%

    Explanation: New revenue = 0.80 × 1.15 = 0.92 of original, representing an 8% decrease.