516EconomicsMedium
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?
AThe administrative burden of a tax.
Bthe deadweight has demonstrated
Chorizontal equity
Dthe benefits principle
Ethe ability-to-pay principle
Correct answer
B. the deadweight has demonstrated
Explanation
The correct answer is the deadweight has demonstrated.