Question

When a tax is levied on sellers of tea,a.the well-being of both sellers and buyers of tea is unaffected.b.sellers of tea are made worse off, and the well-being of buyers is unaffected.c.sellers of tea are made worse off, and buyers of tea are made better off.d.both sellers and buyers of tea are made worse off.

Answer 1

Answer:

a.the well-being of both sellers and buyers of tea is unaffected

Explanation:

• The service tax that is levied n the sellers and the buyers of the tea or coffee, suggests that the tax is an essential component of the economy as the govt introduces the monetary and fiscal terms of credit into the market they tend to create a base for the economic growth and prosperity of the nation in which the citizens have an equal role to play.

• The tax rate on the tea will burden the buyer but in the long run, it will be beneficial to the trader and the community at large, hence this type of fines ae take other developmental purposes. As both the parties have to pay the taxes so it does not hold for any one side.