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Question

Increase in price of commodities due to increase in taxes assumes relevance in the estimation of NNPMP because:


A

taxes are compulsory payments

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B

taxes are transfer payments

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C

taxes are paid out of the income of the households

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D

taxes cause a rise in market price of the commodities which otherwise would have been sold at a lower price

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Solution

The correct option is D

taxes cause a rise in market price of the commodities which otherwise would have been sold at a lower price


Taxes cause a rise in the market prices of the commodities which otherwise would have been sold at a lower price.


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