Multiple Choice Questions

The tax on a commodity diminishes by 14 and its consumption increases by 10 Find the effect on reven...........

Quantitative Aptitude (CHSL) Percentage

The tax on a commodity diminishes by 14% and its consumption increases by 10%. Find the effect on revenue.

This questions was previously asked in

SSC CHSL 9th June 2022 Shift-1

Decreases by 9.5%

Decreases by 6.5%

Decreases by 5.4%

Decreases by 7.4%

- Initial Revenue: Let's assume the initial revenue from the commodity is 100 units.

- Tax Decrease: The tax diminishes by 14%, so the new tax rate is 86% of the original.

- Consumption Increase: The consumption increases by 10%, so the new quantity consumed is 110% of the original.

- New Revenue Calculation: New revenue = New Tax Rate × New Consumption = 0.86 × 1.10

- Effect on Revenue: The new revenue becomes 0.946 or 94.6% of the original revenue.

- Revenue Decrease: This is a decrease of 5.4% from the original revenue.

- Correct Option: Decreases by 5.4%

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