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I think they will just pass the tariffs on and that will be it. Corporations are notoriously greedy.
by surgical_fire 7mo ago
I think they will just pass the tariffs on and that will be it.
Corporations are notoriously greedy.
- junofan 7mo agoYour positions are: 1. Corporations are greedy 2. Corporations will pass the tariff onto customers #1 would imply drug companies charge the maximum price the market will bear. If so, how will they accomplish #2?
- surgical_fire 7mo agoWhenever they have an excuse to increase prices, they do. Mostly because when the tariffs go away they can stick to the current price. Tariffs are perfect in that it is not even an excuse. Maybe they can throw in an extra for their pocket too.
- graemep 7mo agoWhich is why they are already charge the price that maximises their profits. If they charged more the increased profit per unit would be more than offset by lower sales. A good diagram of supply and demand with monopoly pricing power us the easiest way to explain this. I cannot find a good one online that shows the effect of tariffs though. In essence its worth losing some profit per unit to avoid losing too many sales.
- surgical_fire 7mo agoMedicines typically have inelastic demand, which is why it needs heavy government regulation. Look into what happened with Insulin prices in the US in the recent past for a lesson on that.
- graemep 7mo agoIf demand is inelastic why have they not raised prices already?