If the duty on an article is reduced by 40% of its present rate, by how much percent must the consumption increase in order that the revenue remains unaltered?

A. 182 /3 %

B. 194/3 %

C. 200/3 %

D. None of these

Solution(By Examveda Team)

Let initial rate was 100.
Now, 40% decreamnet in duty,

Rate = 100 -40 = 60
To make their revenue 100, consumption must be increase of 40.
So, % increament = (40*100)/60 = 200/3% .

Alternatively, You can check it through Product consistancy method:
100 == 40% down ==> 60 == X% up = 100.
X = (40*100)/60 = 200/3% .