Doing a research method in the form of a survey can actually provide immediate descriptive values of the results. For the purpose of getting the sentiments of the general public about tax impositions, a small survey was conducted. Hotdog sandwiches have become one of the prime commodities for fast food cravings especially in fast paced working environments. The main question at hand is the effect of increasing tax values on hotdogs which can primarily be purchased for convenience.
This type of singular approach of inquiry can provide the best direct responses from the respondents. However, to maximize the study efforts in conducting a survey, an additional question of the tax rates was also asked to the respondents. Moreover, some insights or additional comments from the respondents were also gathered to summarize their thoughts why they think they will be involved in situations they have provided on the form questionnaire based on their personal opinions.
In order for this study to have a reliable structure, a hypothesis must be formulated. In this aspect, an increase in tax on hotdog products will decrease the buying rate of individuals who purchase them on a regular basis. To test this hypothesis, five respondents were designated and asked with the same question. Their answers were noted to see whether there is an actual supporting data for the presented hypothesis. For the study, five people were involved to whom the responses were gathered. Three of the individuals were males while two were females.
They were randomly selected from a group of individuals under the category “personal friends”. Basically, the responses of the surveyed individuals represented a single notion of buying fewer hotdog products if the tax value is to be increased. All five of them share the sentiment that such an increase will definitely raise the street price of hotdog sandwiches which will directly affect their routine budget allocation. Apparently, all of them are working on a kind of job with minimum wage rates. So they are very much concerned about possible raises of commodity costs.
They all work within a city jurisdiction so they are all exposed to a somewhat strict commodity pricing atmosphere. Moreover, they purchase hotdog sandwiches four times a week on the average. In that case, all five respondents have designated that they might just be able to purchase half of that rate if tax increase is to be implemented. Another question asked to the respondents is that, given the tax increase proposal is ratified, what tax rate is ideal for them to at least manage to purchase hotdog sandwiches without affecting their daily budget.
Based on their responses, an average of at least 0. 5% increase on taxes can be sustainable enough for them to still purchase the same amount of sandwiches per week. To summarize the results of the study, the hypothesis was proven to be correct and thus it was accepted. An increase in tax values for hotdog sandwiches could lead to a decrease in purchase rates among people who patronize the product. Relatively, this may be attributed to the fact that increasing tax rates directly manifest on the price range when sold to end customers.
Because of such effect, it would be difficult for the consumers to immediately adjust to new price manipulations, therefore decreasing their capability to buy the commodity. Generally, a tax increase can raise market prices as a form of economic chain effect (Helsingin Sanomat).
Helsingin Sanomat. N. D. Tax hikes, bio-fuel rule raise fuel prices. Helsingin Sanomat-International Edition: Business and Finance. Retrieved January 28, 2008 from http://www. hs. fi/english/article/Tax+hikes+bio-fuel+rule+raise+fuel+prices/1135232985996