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      Question

      The tax on a commodity is reduced by 20% and its

      consumption is increased by 15%. What is the effect on tax revenue?
      A It increases by 10% Correct Answer Incorrect Answer
      B It decreases by 8% Correct Answer Incorrect Answer
      C It increases by 8% Correct Answer Incorrect Answer
      D No change Correct Answer Incorrect Answer

      Solution

      The correct answer is B

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