The percentage computed illustrates that the previous population was 55000.
Since the population of a city has decreased by 26% since it was last measured, that means that it's (100 - 26) = 74%.
Let the population be represented by x
Therefore, 74% of x = 40700
0.74 × x = 40700
x = 40700/0.74
x = 55000
Therefore, the previous population was 55000.
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