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Initially market price was ₹4,200 crore and factor cost was ₹3,880 crore. Later market price rose by ₹180 crore and factor cost rose by ₹70 crore. What was the change in net indirect taxes?

Answer and explanation

Correct answer: Increase of ₹110 crore

Net indirect taxes equal market price minus factor cost. Initially, NIT = 4,200 − 3,880 = ₹320 crore. Later market price is ₹4,380 crore and factor cost is ₹3,950 crore, so NIT = 4,380 − 3,950 = ₹430 crore. The change is 430 − 320 = ₹110 crore increase. Option B is correct; the change depends on the difference between both increases, 180 − 70.

Related tags

Change In Net Indirect TaxesMarket PriceFactor CostComparisonNational IncomeGdp And WelfareNational Income And Related AggregatesEconomics

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