Final answer:
Colonists rejected the East India Trading Company's cheap tea because buying it would implicitly acknowledge Britain's right to tax them without representation, despite it undercutting the price of smuggled tea.
Step-by-step explanation:
The colonists refused to buy tea from the East India Trading Company not because it was inferior, but because they saw the cheap tea as a way for Britain to enforce a tax on them without their consent. This was emblematic of the broader issue of 'no taxation without representation.' The Tea Act of 1773 granted the East India Company a monopoly and allowed it to undercut smuggled Dutch tea, which many colonists drank as a patriotic protest. Despite the lowered prices, the continued presence of the tax and the monopoly deeply rankled colonists who coveted economic freedom and fair trade practices.
The colonial merchants were excluded from the tea trade by the monopoly, reducing their profits and exacerbating their frustration. The tax policy embodied by the Revenue Act was seen as a form of economic protectionism that favored the British East India Company over colonial interests. Furthermore, colonists feared the cheap tea was a strategic ploy to force them into accepting British-imposed taxes, threatening their principle of self-governance.