1297EconomicsMedium
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000?
AThe amount of tax paid will increase by Rs4,000
BThe amount of tax paid will increase by Rs 800
CThe total tax paid will be Rs4,800
DThe amount of tax paid will increase by Rs4,800
Correct answer
C. The total tax paid will be Rs4,800
Explanation
The correct answer is The total tax paid will be Rs4,800.