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# This year, Jurisdiction A raised revenue by increasing its g

This year, Jurisdiction A raised revenue by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from \$800 million to \$710 million. In contrast, Jurisdiction Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was \$50 million. Compute the additional revenue raised by Jurisdiction A and by Jurisdiction Z.

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This year, Jurisdiction A raised revenue by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from \$800 million to \$710 million. In contrast, Jurisdiction Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The ...

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This year, Jurisdiction A raised revenue by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from \$800 million to \$710 million. In contrast, Jurisdiction Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was \$50 million. Compute the additional revenue raised by Jurisdiction A and by Jurisdiction Z.

\$2.19