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We often read even a cup of bad coffee is better than no coffee at all. It’s sort of dope stuff for some coffee-addict. Coffee is being sold and purchased in the United States in excess. People prefer Coffee over Tea in the states. But as the sales climb, the government enters the arena, put a tax imposed on the sellers of a coffee and there we go, the deprivation of coffee comes. Tax imposition is good but tax imposition with huge rates is not a good idea.
Sellers of Coffee
@Flickr
Coffee influence among the audience of the United States is far greater than in other countries out there. The sellers of coffee will eventually be greater too. Also, the hike in the ingredients of coffee would also climb up proportionally. Besides this employment rate in the coffee selling domain would decline.
Price Hike In Coffee Ingredients
Tax imposition increases the production sector invoices too. The price hike would likely appear in the ingredients involved to make the Coffee.
- Caffeine. This white powder is why the world produces more than sixteen billion pounds of coffee beans per year.
- Water. …
- 2-Ethylphenol. …
- Quinic Acid. …
- 3,5 Dicaffeoylquinic Acid. …
- Dimethyl Disulfide. …
- Acetylmethylcarbinol. …
- Putrescine.
All these mention ingredients would likely see an increase for sure.
A tax imposed on the sellers of a coffee
So aside from all the things, a tax imposed on the sellers of a coffee will increase the price of coffee paid by buyers and will decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. The buyers will be affected more due to this action as the imposition of tax increases.
Demand Curve
The demand curve will shift up due to the tax on the sellers of the Coffee. While on the other hand, the demand curve will shift down due because of the tax on the buyers of the Coffee.