Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following is true with reference to Basic prices?

• A. Amount received by the producer for the product minus any tax on the product, plus any subsidy on the product.
• B. Amount received by the producer for the product plus any tax on the product, minus any subsidy on the product.
• C. Amount paid by the consumer for the product plus any tax on the product, minus any subsidy on the product.
• D. Amount paid by the consumer for the product plus any tax on the product and any subsidy on the product.

Answer 1

The correct option is A Amount received by the producer for the product minus any tax on the product, plus any subsidy on the product.

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, by the producer as a consequence of its production or sale. It excludes any transport charges invoiced separately by the producer.