Re:Kiel Institute Analysis: US Americans pay 96% of tariff b...
by dghlsakjg on Monday January 19, 2026 @11:24AM
(#46680793)
This is why Econ 101 is important.
There are circumstances where much of the burden of increased costs is borne by the producer. When demand is very elastic (consumers are price sensitive, or there are many good substitutes), and supply is inelastic (its hard to change the level of output), the suppliers will eat the cost.
There are circumstances where much of the burden of increased costs is borne by the producer. When demand is very elastic (consumers are price sensitive, or there are many good substitutes), and supply is inelastic (its hard to change the level of output), the suppliers will eat the cost.