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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