Once you attempt the question then PrepInsta explanation will be displayed.
It looks like question assumes
Revenue= Consumption x tax amount per commodity
Let, commodity = 100, tax amount per commodity = 100
Revenue = 100 × 100 = 10000
new consumption = 100(100+15)/100= 115
New tax amount per commodity= 100(100 - 20)/100= 80
New revenue = 115 × 80 = 9200
Decrease in revenue = 10000 - 9200= 800
Percentage decrease in revenue =800x100/10000= 8%
Login/Signup to comment