Re:Alexa Is in Households–and Amazon Is Losing Billions
by tsimionescu on Thursday July 25, 2024 @02:50PM
(#41072027)
Agreed on all these points. But none of this means that the price before tax is a meaningful number that people need to be aware of or care about.
That's correct.
> So the tax level is irrelevant to the value of the market price, if you believe in supply & demand as the price setting mechanism.
Taxes raise the price, which reduces demand. If the prices don't rise, then the margins decrease, which reduces the incentive for the business owners to continue.
> doesn't make you a low margin business
It makes you a lower margin business. It reduces the margins on all the businesses, and the marginal (!) ones are no longer viable, and a new set of businesses become at the edge.