Water tax is increased by 20% but its consumption is decreased by 20 %. Then, the increase or decrease in the expenditure of the money is:________?
Correct Answer: D. 4 % decrease Let tax = Rs. 100 and consumption = 100 units Original Expenditure = Rs. (100 × 100) = Rs. 10000 New Expenditure = Rs. (120 × 80) = Rs. 9600 Decrease in expenditure = (400/10000 x 100) % = 4 %
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