MCQOPTIONS
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| 1. |
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? |
| A. | the deadweight has demonstrated |
| B. | the ability-to-pay principle |
| C. | the benefits principle |
| D. | horizontal equity |
| E. | The administrative burden of a tax. |
| Answer» B. the ability-to-pay principle | |