Question 106

The GST on groceries is reduced by 20% and its consumption increases by 15% . Find the percentage of effect on revenue.

Name: The GST on groceries is reduced by 20% and its consumption increases by 15% . Find the percentage of effect on revenue.
Uploaded: 2026-04-05T16:00:48.014779+05:30
Duration: 1 min 7 s
Description: The GST on groceries is reduced by 20% and its consumption increases by 15% . Find the percentage of effect on revenue.

Solution

Revenue is the product of spending and consumption. Hence, this is a case of successive percentage change.

The multiplying factor of reduction of 20% is 0.8, while that of increase by 15% is 1.15.

Assuming the initial revenue be X, we get the new revenue as X$$\times\ 1.15\times\ 0.80$$, which 0.92X.

This means there is a reduction of 8% in the revenue.

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