4. Due to Covid 19 pandemic E-Commerce industry is progressing. People are abstaining
to go out and ordering online. Suppose Government of India Levies a special sales tax on
Online products.
Q1 - Will there be a shift or movement along supply? Explain with the help of diagram.
(2 Marks)
Q2 - How do we know how much sales tax will be passed along to buyers & how much
must be absorbed by the seller?
A) Assume that the demand for the product is perfectly inelastic (2 Marks)
B) Assume that demand for the product is perfectly elastic. (2 Marks)
Q3 - Is it fair to levy tax on E-Commerce or Online Shopping? Explain. (4 Marks)
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Answer:
It's 11 clock good night take care OK buy
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