3 ms·
Affected Company A passes the 1% cost increase of the tax to the consumer. Affected Company B changes their packaging, e.g. to recycled paper, to avoid the tax
by ip26 6y ago
Affected Company A passes the 1% cost increase of the tax to the consumer.
Affected Company B changes their packaging, e.g. to recycled paper, to avoid the tax at a 0.1% cost increase and passes it to the consumer.
You tell me what happens next.
- bluGill 6y agoProblem is company B increased their costs by 5% to avoid the tax. Plastics are so cheap compared to alternatives that this is a real situation.