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Economics Mcqs
Q
Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?
AA. The deadweight has demonstrated
BB. The ability-to-pay principle
CC. The benefits principle
DD. Horizontal equity
Correct Answer:
A. A. The deadweight has demonstrated