Question

One result of the Tea Act of 1773 was
A. a sharp decline in tea exports from British East India
B. an increase in the price of coffee beans
C. a drop in profits among American colonial tea merchants
D. an immediate violent response from the American colonists
E. a disruption of British trade in tobacco and sugar

Answer 1

Hint: The "Tea Act 1773” is an act of the British Parliament. The main goal is to reduce a large amount of tea held by the financially troubled British East India Company in London warehouses and help the troubled company survive.

Complete Answer:
A related goal was to reduce the price of illegal tea being smuggled into the North American colonies. This should convince the colonizers to buy the company tea, for which Townshend's duties have been paid, and thus implicitly agreeing to accept parliamentary rights to taxes. Smuggled tea was a big problem for the British and East India Company because about 86 percentages of all tea in America was Dutch tea smuggled at the time. The law gave companies the right to ship their tea directly to North America and the right to export tea duty-free from Britain, although taxes imposed by the Townshend statute and levied in the colony remained in effect. It received royal approval on May 10, 1773. The colonizers in the thirteen colonies recognized the importance of the rule of law, and a coalition of traders, smugglers, and craftsmen similar to those who opposed the Stamp Act of 1765 mobilized against the supply and distribution of tea.
So, the correct answer is Option C.

Note: The Stamp Act of 1765 was a bill of the British Parliament that levies direct taxes on American colonies in the United States and required that many printed materials in the colonies must be produced on stamp paper with stamped tax stamps produced in London.