Lol ur not very good at math r u?
2. Sales tax on sugar is reduced by 20%, if the revenue of sugar is unaltered, by what % must sales have been increased?
LOL obviously we can see that you're not since you think the answer is 25%
100% sales tax on $1,000 worth of sugar = $2000 total (tax + sales)
80% sales tax on $1000*1.25 worth of sugar= $2250 total (tax + sales)
$2000 does not equal $2250
Guess I had to spell it out for you in simple math terms without all the xs and ys since they must confuse you... even though common sense would've told you it couldn't have been a straight percentage.
BUT, if you were really intent on solving, use the equation I posted in my reply a couple posts up.
x= tax percentage
y= sales
z= revenue
y is inversely related to x+1
xy + y = z
y(x+1)=z
percent change in y = (1/((.8x+1)/(x+1))-1) * 100
(1/((.8(1)+1)/(1+1))-1) * 100 =
11.11...%
80% sales tax on $1000*1.11... worth of sugar= $2000 total (tax + sales)
What do you know.... same revenue!
Going back to the original question, it should have read: Sales tax on sugar is reduced by 20%, if the tax revenue of sugar is unaltered, by what % must sales have been increased
THANK YOU. THIS answer is 25%, and is a totally different question than what the OP stated, even if it differs by 1 word. Glad to see someone else can see this difference.