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5.The duty on sugar is increased by 20% and itsconsumption is reduced by 20%, find out thepercentage increase or decrease in revenue fromthis. |
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Answer» Let the initial expenditure on the commodity be Rs. 100.Now, the price decreases by 20%,Current Price = (100 - 20% of 100) = Rs. 80.Same time due to decrement in price 20% consumption has been increased. So,Current expenses on commodity = (80 + 20% of 80)= Rs. 96.Here, the initial expenditure was Rs. 100 which became 96 at the end, it means there is 4% decrement in the expenditure of the commodity. |
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