Increase in the price of commodities due to an increase in taxes assumes relevance in the estimation of NNP at MP because
Q. Increase in the price of commodities due to an increase in taxes assumes relevance in the estimation of NNP at MP because:
- taxes are compulsory payments
- taxes are trAnswer:fer payments
- taxes are paid out of the income of the households
- taxes cause a rise in the market price of the commodities which otherwise would have been sold at a lower price
Answer: taxes cause a rise in the market price of the commodities which otherwise would have been sold at a lower price