Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 8 hours agoELI5 How does a tariff against a major trading partner effect the common pleebs?message-squaremessage-square9fedilinkarrow-up111arrow-down10
arrow-up111arrow-down1message-squareELI5 How does a tariff against a major trading partner effect the common pleebs?Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 8 hours agomessage-square9fedilink
minus-squaresunzu2@thebrainbin.orglinkfedilinkarrow-up1arrow-down1·8 hours agoThe answer is in between depending on profit margin and market conditions… If nobody buys your shit for 1.50… You will be forced to eat the profit margin
minus-squareSolidShake@lemmy.worldlinkfedilinkEnglisharrow-up8·8 hours agoI think you’d be surprised at how many businesses don’t like any sort of income loss. So the consumer pays the full tariff every time. The lemonade is now $1.50
minus-squaresunzu2@thebrainbin.orglinkfedilinkarrow-up2·7 hours agoIf demand is inelastic… Sure… Food rent gas But people can easily either not buy or find a substitute for lemonade lol… That’s bow free markets generally work Electronics can be used until they break!
minus-squareSolidShake@lemmy.worldlinkfedilinkEnglisharrow-up4·7 hours agoNon tariff lemonade is $2 because it’s local and “organic”. And it’s not gross Commie lemonade.
The answer is in between depending on profit margin and market conditions…
If nobody buys your shit for 1.50… You will be forced to eat the profit margin
I think you’d be surprised at how many businesses don’t like any sort of income loss. So the consumer pays the full tariff every time. The lemonade is now $1.50
If demand is inelastic… Sure… Food rent gas
But people can easily either not buy or find a substitute for lemonade lol… That’s bow free markets generally work
Electronics can be used until they break!
Non tariff lemonade is $2 because it’s local and “organic”. And it’s not gross Commie lemonade.