The tax on a commodity is diminished by 10% and its consumption increases by 10%. Find the effects on revenue ?  Answers:
A) 1% decrease B) 2% increase C) 3% decrease D) 4% decrease E) none of these
Since tax consumption = revenue .   Therefore, Net % change in revenue   = ( x + y + xy/100) %   = [ - 10 + 10 + ( - 10 x 10)/100]% or -1% .   Therefore, revenue decreased by 1%.   1% decreaseNSWER:1% decrease
<result>A</result>
The tax on a commodity is diminished by 10% and its consumption increases by 10%. Find the effects on revenue ?